Umbrella insurance calculator: how much do you need?

An umbrella policy adds liability protection above your auto and home policies, usually in $1 million layers. Enter what you have to protect and your current limits to see a suggested umbrella size.

Runs in your browser. Nothing you type is stored. Last updated: October 18, 2026

Net worth to protect

Yearly income

Years of income to include

Your auto liability limit per accident

Your home or renters liability limit

Higher-risk factors in your household

Advanced options

Yearly net worth growth

Years to project

Result

Showing the worked example. Change any number to see your own result.

$1,000,000Suggested umbrella

You have about $900,000 to protect, which is $400,000 more than your underlying limits. A $1,000,000 umbrella policy would cover that gap.

Suggested umbrella: $1,000,000
Exposure: $900,000
gap: $400,000
Umbrella needed at the end: $1,000,000

Your exposure vs your protection

Exposure
Protected (underlying + umbrella)
Underlying limit

View chart data as a table

Your exposure vs your protection
Years from now	Exposure	Protected (underlying + umbrella)	Underlying limit
0	$900,000	$1,500,000	$500,000
1	$945,000	$1,500,000	$500,000
2	$992,250	$1,500,000	$500,000
3	$1,041,863	$1,500,000	$500,000
4	$1,093,956	$1,500,000	$500,000
5	$1,148,653	$1,500,000	$500,000
6	$1,206,086	$1,500,000	$500,000
7	$1,266,390	$1,500,000	$500,000
8	$1,329,710	$1,500,000	$500,000
9	$1,396,195	$1,500,000	$500,000
10	$1,466,005	$1,500,000	$500,000

Projection year by year

Year	Net worth	Exposure	Underlying limit	Umbrella needed
0	$900,000	$900,000	$500,000	$1,000,000
1	$945,000	$945,000	$500,000	$1,000,000
2	$992,250	$992,250	$500,000	$1,000,000
3	$1,041,863	$1,041,863	$500,000	$1,000,000
4	$1,093,956	$1,093,956	$500,000	$1,000,000
5	$1,148,653	$1,148,653	$500,000	$1,000,000
6	$1,206,086	$1,206,086	$500,000	$1,000,000
7	$1,266,390	$1,266,390	$500,000	$1,000,000
8	$1,329,710	$1,329,710	$500,000	$1,000,000
9	$1,396,195	$1,396,195	$500,000	$1,000,000
10	$1,466,005	$1,466,005	$500,000	$1,000,000

How the result is built

Umbrella sizing breakdown
Net worth	$900,000
Future income included	$0
Total exposure	$900,000
Minus your highest underlying limit	−$500,000
Suggested umbrella	$1,000,000

Compare scenarios

Save up to 3 versions of your inputs and compare them side by side.

How to use this calculator

Add up what you could lose. Enter net worth outside protected retirement accounts, and optionally a few years of income.
Enter your current liability limits. Use the per-accident auto bodily injury limit and your home or renters liability limit.
Count higher-risk factors. A teen driver, pool, dog or rental property raises the chance of a large claim.
Check the insurer's underlying requirements. Umbrella policies usually require minimum auto and home limits before they apply.

What an umbrella policy does

Home and auto policies include liability coverage, but only up to a limit. The Texas Department of Insurance notes that home policies provide limited liability protection and that you can buy a separate umbrella liability policy for more. The NAIC warns that if a judgment is larger than your auto limit, you will have to pay the difference. An umbrella sits above your other policies and pays after they are exhausted.

This calculator compares what you could lose in a lawsuit with your current limits and suggests an umbrella size in the $1 million steps insurers usually sell.

How the calculation works

Exposure = net worth + (yearly income × years of income included)

Gap = exposure − highest underlying limit (auto per accident or home liability)

Suggested umbrella = gap rounded up to the next $1,000,000

If you have no gap but list one or more higher-risk factors, the tool suggests the smallest common umbrella, $1 million, because those households are more likely to face a large claim.

Worked example

The calculator opens with this example: $900,000 of net worth outside retirement accounts, auto liability of $500,000 per accident and home liability of $300,000.

Line	Amount
Net worth	$900,000
Future income included	$0
Exposure	$900,000
Highest underlying limit	−$500,000
Gap	$400,000
Suggested umbrella	$1,000,000

With income at risk

A household with $1.8 million of net worth, $150,000 of income and two years of income included has $2.1 million of exposure. Minus a $500,000 auto limit, the gap is $1.6 million, so the suggestion is a $2 million umbrella.

Underlying limits: the detail that matters

Umbrella insurers usually require you to keep certain minimum limits on your auto and home policies, for example around 250/500 on auto bodily injury and $300,000 on home liability, though each insurer sets its own. If your auto limit is below the requirement, the umbrella may not start paying where your auto policy stops, leaving a gap you would pay yourself. Ask for the exact requirements before you buy.

Policy	What to check
Auto	Bodily injury per person and per accident limits meet the umbrella’s minimum
Home or renters	Personal liability limit meets the minimum
Rental properties, boats	Each may need its own underlying liability

What changes the answer

Higher-risk activities. Teen drivers, pools, trampolines, dogs and frequent guests raise the chance of a big claim.
Public roles. Coaching, volunteering on a board or a public profile can increase exposure.
State law. How much of your wages and which assets can be reached in a judgment varies by state.
Future earnings. Professionals with high incomes often include several years of income.

Common mistakes

Mistake	Why it matters
Thinking “I’m not rich enough”	Future income and home equity are at risk too
Buying an umbrella without raising auto limits	Leaves a gap below the umbrella
Forgetting to list all drivers and properties	Unlisted exposures may not be covered

Next steps

Check your auto limits against your state minimum with the auto liability checker, size your home or renters liability with the home and renters checker, and read our guide to personal liability and umbrella insurance.

Questions people ask

How much umbrella insurance do I need?

A common approach is enough to cover your net worth, plus some future income if you earn a lot, minus your auto and home liability limits, rounded up to the next $1 million.

What does an umbrella policy cover?

It pays liability claims after your auto, home or renters policy reaches its limit, and may cover some claims those policies exclude. It does not cover your own property or injuries.

Who needs umbrella insurance?

People whose assets or income are larger than their underlying liability limits, and households with higher risks such as teen drivers, pools, dogs or rental properties.

Do I need to raise my auto limits to buy an umbrella?

Usually. Insurers commonly require minimum underlying limits on auto and home policies. If yours are lower, there can be a gap where neither policy pays.

Is umbrella insurance expensive?

It is often less expensive than people expect for the coverage it adds, because it pays only after other policies are used up. Prices depend on your household, state and insurer.

Should I include retirement accounts in net worth?

Many retirement accounts have strong legal protections, though rules vary by account type and state, so many people leave them out when sizing an umbrella.

Can an umbrella policy cover a rental property?

Often yes, if the rental is listed and has its own underlying liability cover. Ask your insurer how rentals are handled.

Sources

Home insurance guide — Texas Department of Insurance, accessed October 18, 2026
Auto Insurance — National Association of Insurance Commissioners (NAIC), accessed October 18, 2026

Educational information, not insurance, legal or financial advice. Coverlee does not sell insurance. How we calculate