Calculators › Home, Auto & Renters
Compare what you could lose in a lawsuit with the liability limit on your home and auto policies, and size an umbrella policy to cover the gap.
An umbrella policy adds liability coverage on top of your home and auto policies. It pays once those limits are used up — for example after a serious car accident or an injury at your home. The right amount depends on what a court judgment could reach: your savings, home equity and future income.
At risk = Net worth + Annual income × Years. Gap = At risk − Underlying liability limit. Umbrella = Gap rounded up to the next $1 million.
A household with $650,000 of net worth and $120,000 of income, protecting 3 years of income, has $1,010,000 at risk. With a $300,000 liability limit, the gap is $710,000, so a $1 million umbrella is suggested.
Anyone whose savings and future income exceed their home and auto liability limits, and households with higher-risk factors: teen drivers, a pool or trampoline, dogs, rental property or boats.
The first $1 million is often a few hundred dollars a year, with each additional million costing less. Prices vary by insurer, state and how many drivers and homes are covered.
Usually yes. Insurers commonly require minimum liability limits on the underlying policies, such as $250,000/$500,000 on auto and $300,000 on home.