Umbrella Policy Cost vs Coverage 2027 Calculator
Calculate how much umbrella insurance you need for 2027 — based on net worth plus future income exposed to lawsuit, with tiered premium estimates from $150-$500 per million.
Coverage Sizing Formula
Standard rule: umbrella coverage ≥ net worth + 5-10 years of future income (to protect against wage garnishment). For $1M net worth + $200k income = $2-3M umbrella minimum. Wealth managers often recommend $5M+ for $1M+ households.
Premium per Million
$1M coverage: $150-$300/year. $2M: $250-$400. $5M: $500-$800. $10M: $1,000-$1,500. Premium per million DECLINES with size — first million costs the most. Multi-property landlords pay 50-100% more for same coverage.
Underlying Limits Required
Umbrella sits ABOVE auto/home liability. Insurer requires minimum underlying: typically $250k/$500k auto bodily injury, $250k home liability. If you don't have those, raise underlying first OR pay 'gap' surcharge.
When Umbrella Matters Most
Teen drivers (high accident probability). Pool/dog/trampoline on property (attractive nuisance). Coaching youth sports (public exposure). Renting out property/Airbnb. High visible job (lawsuit target). Net worth + income > $750k.
Source: iii.org umbrella insurance guide, naic.org personal liability. Last updated: May 2026.