Professional services
Umbrella Insurance Calculator
Works umbrella cover, which sits above the primary policies and only works if they qualify.
Result
An estimating tool, not insurance advice and not a quote. Underwriting sets real premiums on factors no calculator sees. What cover is appropriate is a question for a licensed broker. Umbrella cover sits above your auto and home liability and requires those underlying policies to carry minimum limits, so raising the umbrella often means raising them first. Future income is included because judgments can be satisfied from earnings over time, not only from present assets. Whether and how much to carry is a conversation for a broker who knows your circumstances.
Get a Free Business AuditHow the calculation works
The limit required above the primary policies, priced per million of cover, giving annual and monthly cost. Umbrella cover responds after an underlying policy's limit is exhausted, which makes it unusually cheap per dollar of cover and also makes it conditional on the underlying policies being in place at the required limits.
What moves the number
- Limit required above the primary cover.
- Underlying limits the umbrella requires.
- Number of vehicles, properties and other exposures.
- Whether business exposures are included or excluded.
Where this one goes wrong
An umbrella requires the underlying policies to carry specified minimum limits, and if a primary policy falls below them the umbrella can decline or respond only above the limit that should have been there, leaving a gap the insured funds. Check the underlying requirements at every renewal rather than only at purchase. Personal umbrella policies also commonly exclude business activities, so a business exposure needs commercial excess cover rather than the personal policy people assume covers everything.
Before you quote
- Confirm underlying limits meet the umbrella's requirements.
- Recheck them at every primary renewal.
- Do not rely on a personal umbrella for business exposures.
Where the rules come from
Questions
About this calculator
Why is umbrella cover so inexpensive?
Because it only responds after an underlying policy's limit is exhausted, which happens rarely. That makes it unusually cheap per dollar of cover and also makes it entirely dependent on the underlying policies being in place at the limits it requires.
What if my primary limits drop below the requirement?
The umbrella can decline or respond only above the limit that should have been there, leaving a gap the insured funds. That makes checking underlying requirements at every primary renewal, not just at purchase, genuinely important.
Does a personal umbrella cover my business?
Commonly not. Personal umbrella policies typically exclude business activities, so a business exposure needs commercial excess cover. Assuming otherwise is a frequent and expensive misunderstanding, and the exclusion is in the policy wording.
The formula
exposure = net worth + several years of income, adjusted for risk factors, less the lowest underlying limit
Put this calculator on your site
Free to embed. Paste this where you want it to appear. It stays up to date automatically because it loads from BDEVY.
Please keep the attribution line. It is the only thing we ask in return.
How to use this calculator
- Net worth ($). Enter your own figure; the page starts at $850,000.
- Annual income ($). Enter your own figure; the page starts at $140,000.
- Auto liability limit ($). Enter your own figure; the page starts at $300,000.
- Home liability limit ($). Enter your own figure; the page starts at $500,000.
- Risk exposure. Enter your own figure; the page starts at Moderate: one raised exposure.
- Premium per million of cover ($). Enter your own figure; the page starts at $250.
The result updates as you type, so you can try a figure, see what it does to cover worth considering, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Net worth | $850,000 |
| Annual income | $140,000 |
| Auto liability limit | $300,000 |
| Home liability limit | $500,000 |
| Risk exposure | Moderate: one raised exposure |
| Premium per million of cover | $250 |
What comes out
| Result | Value |
|---|---|
| Cover worth considering main result | $2,000,000 |
| Assets and future income at risk | $1,550,000 |
| Gap above the underlying limits | $1,637,500 |
| Estimated annual premium | $500 |
| Cost per million | $250 |
With $1,550,000 of assets and future income exposed, roughly $2,000,000 of umbrella cover is worth discussing, at around $500 a year. Umbrella is unusually cheap per dollar of protection.
How sensitive the answer is
Holding everything else steady and changing only net worth, this is what happens to cover worth considering. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Net worth ($) | Cover worth considering |
|---|---|
| $425,000 | $2,000,000 |
| $637,500 | $2,000,000 |
| $850,000 example above | $2,000,000 |
| $1,275,000 | $3,000,000 |
| $1,700,000 | $3,000,000 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Net worth ($)
- A money amount, starting at $850,000.
- Annual income ($)
- A money amount, starting at $140,000.
- Auto liability limit ($)
- A money amount, starting at $300,000.
- Home liability limit ($)
- A money amount, starting at $500,000.
- Risk exposure
- Choose from Low: no pool, no teen drivers, no rentals, Moderate: one raised exposure, High: pool, teen drivers or rental property.
- Premium per million of cover ($)
- A money amount, starting at $250.
What the results tell you
| Result | What it is |
|---|---|
| Cover worth considering | The headline result. A money figure. |
| Assets and future income at risk | A money figure. |
| Gap above the underlying limits | A money figure. |
| Estimated annual premium | A money figure. |
| Cost per million | A money figure. |
Keep going
Related calculators
Estimating is the easy part
The jobs you never hear about cost more than the ones you mis-measure. BDEVY builds the marketing, systems and automation that bring them in.