Umbrella Policy Calculator — Formula
## Umbrella Insurance
An umbrella policy provides extra liability coverage beyond your auto and home insurance limits.
### How Much Do You Need?
**Suggested Coverage = Net Worth + Future Earnings at Risk - Highest Underlying Limit**
Round up to the next $1 million increment. Most financial advisors recommend at least $1 million.
### Cost
Umbrella policies cost roughly $150-$350 per year for $1 million of coverage, making them one of the most affordable forms of insurance.
An umbrella policy provides extra liability coverage beyond your auto and home insurance limits.
### How Much Do You Need?
**Suggested Coverage = Net Worth + Future Earnings at Risk - Highest Underlying Limit**
Round up to the next $1 million increment. Most financial advisors recommend at least $1 million.
### Cost
Umbrella policies cost roughly $150-$350 per year for $1 million of coverage, making them one of the most affordable forms of insurance.
Exemplo Resolvido
$500,000 net worth, $300,000 future earnings at risk, $300,000 auto and home limits.
- Total exposure = $500,000 + $300,000 = $800,000
- Gap above underlying = $800,000 - $300,000 = $500,000
- Rounded up to $1,000,000 umbrella policy
- Estimated cost = $250/year