Umbrella insurance needs.

Worked example

Net worth is $1,800,000 and your highest home or auto liability limit is $500,000, so the gap is $1,300,000. Umbrella cover is sold in $1 million steps, so the smallest step that covers it is $2,000,000 (2 units). At a quoted $250 for the first million and $75 for each extra million, that is $325 a year, and your total liability cover would be $2,500,000.

How it works

Exposure = net worth + future earnings you choose to protect. Gap = exposure - existing liability limit. Umbrella = the gap rounded up to the next whole $1 million. Cost = your first-million premium + your extra-million premium x (units - 1). Kiplinger says umbrella insurance is usually sold in $1 million increments up to $5 million, and that a quick test of whether you need one is whether your net worth is higher than your home or auto liability limits.

Sources and basis (opened 2026-10-08): arithmetic on the net worth, limits and premiums you enter; no premium data is built in. The increments and net-worth test come from Kiplinger, “How Much Umbrella Insurance Do I Need?”.

FAQ

How much umbrella insurance do I need?

Kiplinger suggests comparing your net worth with your home and auto liability limits and not buying more than your net worth. This calculator shows the gap rounded up to $1 million.

Why does it round up to $1 million?

Umbrella policies are usually sold in $1 million increments, up to about $5 million, according to Kiplinger.

Should future income count?

Wages can be at risk in a large judgment, so you can add them in the optional field. Leave it at 0 to use net worth alone.

What does an umbrella policy cost?

It depends on your insurer, location and risks. Enter the premiums from your own quotes; this tool has no price data.

Do I need other policies first?

Insurers often require you to hold home or auto cover with minimum liability limits. Ask for the requirements when you get a quote.