Insurance provides peace of mind; the more assets and wealth you accumulate, the more insurance you need to protect them. An umbrella insurance policy – an “umbrella” covering homeowners and auto policies – is an excellent option for high net-worth individuals because it protects you against lawsuits.’s umbrella insurance policy calculator can help you figure out whether you need an umbrella insurance policy and for how much – policies are offered in million-dollar increments.

Key Highlights
  • A personal umbrella policy pays out when the underlying coverage has reached its limits.
  • An $1 million umbrella insurance policy costs a few hundred dollars annually.
  • An umbrella policy is ideal if you have many assets or need additional lawsuit protection.

Do I need an umbrella insurance policy?

Umbrella insurance is a type of personal liability insurance that can provide additional protection beyond the standard limits of your auto and homeowners policies. It helps protect you against high-cost legal claims or settlements resulting from accidents or property damage caused by you or your family members. 

“Umbrella insurance is a type of insurance coverage that adds an additional layer of protection for insureds against exposure from claims that exceed the underlying coverages,” says attorney George Salinas of George Salinas Injury Lawyers, a law firm in San Antonio, Texas. “While primary insurance policies are typically intended to cover the potential damages arising from a claim, there may be unique situations involving losses that can significantly exceed the primary coverages that most insurance companies sell. For this reason, umbrella insurance exists to protect people if this occurs. This is especially necessary for people with assets that they need to protect.”

If your net worth exceeds the coverage offered by auto and homeowners policies, umbrella insurance can provide extra security, allowing you to keep more of your assets safe from potential lawsuits. 

How much umbrella insurance do I need?

To determine whether you need an umbrella insurance policy, input information about your financial assets and liabilities into the calculator below. Remember, you must increase the liability limits of your homeowner and auto insurance policies before you qualify for an umbrella policy – check with your insurance company to see what underlying limits are required.

All the information you provide for this calculator will be kept confidential. We will not ask you for any information that can be used to contact you unless you request a quote.

Umbrella Insurance Calculator

Calculate your umbrella insurance coverage needs in a few simple steps

4Risk Exposure


(It's acceptable to estimate if you don't know the actual amounts)
Two hundred fifty thousand dollars
One hundred eighty seven thousand five hundred dollars
One hundred twenty thousand dollars
Forty two thousand five hundred dollars
You should have assets!


(It's acceptable to estimate if you don't know the actual amounts)
One hundred thousand dollars
Twenty five thousand dollars
Five thousand dollars
Twenty thousand dollars


Determine whether you have enough underlying homeowners and auto insurance coverage.

This calculator is for informational purposes only. Shoppers should always increase the underlying limits of their home and auto policies to the highest available before buying umbrella insurance.

Risk factors

Check all that apply:


We recommend a personal umbrella policy with coverage limits of $1M or more. However, your homeowners personal liability and auto liability coverage limits need to be increased first. Check the eligibility tab for more information.
Your Net Worth $450K
Risk Level
Your Assets $600K
Your Liabilities $150K
Insurance Coverage $0
Risk Factors: Based on your risk profile, you have a low exposure to potential liability losses. Our experts recommends you getting an Umbrella Insurance to save assets from any potential losses.

You don't need an umbrella insurance policy.

Eligibility Criteria: To be eligible for an Umbrella Policy, insurance companies will require you to maintain certain minimum liability limits on your auto and homeowners policies.
Auto Insurance Policy
  • $250,000 per person (bodily injury)
  • $500,000 per occurrence (bodily injury)
  • $100,000 (property damage)
Home Insurance Policy
  • $300,000 liability
Boat Insurance
  • $100,000 for smaller boats
  • $300,000 for larger boats (26 ft or longer, 50 HP or up)

When should you buy umbrella insurance?

You can purchase umbrella insurance at any time. Suppose you are at risk of lawsuits or personal liability incidents, such as owning a trampoline and having weekend pool parties. In that case, consider investing in coverage sooner than later. 

In general, having umbrella insurance provides peace of mind protection and can benefit anyone who wants additional coverage for accidents, teen drivers in their home, property damage and tenant incidents. 

Learn about the top-rated umbrella insurance companies

Who needs umbrella insurance?

An umbrella policy can benefit almost anyone. It’s an extra layer of protection for you and your assets and provides coverage when you reach your primary policies’ limits. It can also be ideal if you have many assets or need additional lawsuit protection.

A personal umbrella policy may be worth investing in if you’re:

  • A homeowner or rental property owner
  • Are a public figure
  • Coach sports 
  • Have a teen driver in your home
  • Have significant savings 
  • Host parties in your home
  • Own a boat, pool, trampoline or guns
  • Own certain dog breeds
  • Serve on a nonprofit board

Remember, a personal umbrella policy pays out when the underlying coverage has reached its limits. If you decide to purchase umbrella insurance, most insurers will have requirements on how much liability you already have before they sell you a policy. 

What additional protections does umbrella insurance offer?

In addition to personal liability, umbrella insurance provides lawsuit protection against slander and libel; false arrest, detention or imprisonment; malicious prosecution; and shock/mental anguish. 

No insurance policies will cover you for criminal or intentional actions that result in bodily injury or property damage.

Guide to umbrella insurance: What it is and how it works

How much does umbrella insurance cost?

The cost of umbrella insurance varies depending on the coverage amount and your personal factors. According to Progressive, a $1 million umbrella insurance policy costs a few hundred dollars a year – the company offers policies up to $5 million.

“The cost of umbrella coverage varies based on the size of the umbrella, but the price is minimal relative to the added security it provides and much lower than the cost of primary coverage,” Salinas says.

Learn more: Is an umbrella policy a waste of money

Final thoughts: Umbrella policy calculator

Umbrella insurance provides liability protection beyond your car and home insurance policies. If you’re unsure whether you need a policy, use’s umbrella policy calculator to decide.

Laura Longero

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Laura Longero

Executive Editor

Laura is an award-winning editor with experience in content and communications covering auto insurance and personal finance. She has written for several media outlets, including the USA Today Network. She most recently worked in the public sector for the Nevada Department of Transportation.

John McCormick

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John McCormick

Editorial Director

John is the editorial director for, and Before joining QuinStreet, John was a deputy editor at The Wall Street Journal and had been an editor and reporter at a number of other media outlets where he covered insurance, personal finance, and technology.

Leslie Kasperowicz

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Leslie Kasperowicz

Managing Editor

Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like and and managing content, now at

Nupur Gambhir

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Nupur Gambhir

Managing Editor

Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.

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Katrina Raenell is a writer, editor and educator with 20 years of experience in content and communications for international organizations, nonprofits and start-ups. In her previous roles, she was a communications manager for study abroad, content project manager for higher education and finance websites, reported on arts and culture, and was a managing editor for an online health and wellness publication.