Umbrella Insurance for $1,000,000 Net Worth
With $1,000,000 in assets and standard $300,000 liability limits on auto and home, you likely need $1 million or more in umbrella coverage.
How to use this tool
- Add up the assets you want to protect (home equity, savings, investments).
- Enter your current auto and home liability limits.
- Keep the increment at $1,000,000 (the standard umbrella layer) unless told otherwise.
- Read the recommended umbrella coverage rounded to the next whole layer.
Calculate how much umbrella liability coverage protects a $1,000,000 net worth when your underlying policies have standard limits.
Frequently asked questions
- How much umbrella insurance should I have?
- A common rule is to carry at least as much as your net worth, often rounded up because future income can also be at risk. This tool rounds the gap above your underlying limits up to the next $1 million layer.
- Why does umbrella insurance require minimum underlying limits?
- An umbrella only pays after your auto or home liability is exhausted. Insurers therefore require you to carry a minimum underlying limit (often $250,000-$500,000) before they will write the umbrella.
- Is umbrella insurance expensive?
- No — it is one of the cheapest coverages per dollar. A $1 million policy often costs a few hundred dollars a year, which is why advisors suggest rounding coverage up generously.