How Much Umbrella Insurance Do I Need?

Use our calculator to determine how much umbrella insurance is right for you. Having too much liability insurance is better than having too little.

A senior couple sit on a couch at home looking at a laptop.
(Image credit: Getty Images)

An umbrella insurance policy provides additional coverage outside the existing limits of other policies, like car insurance and homeowners insurance. It offers protection for a number of situations; For example, if you're sued for libel, get into a car accident abroad, or if your dog causes harm to a guest, umbrella insurance can help further protect your assets if these claims aren't covered by existing liability policies. 

Umbrella coverage kicks in when the underlying liability limit of an insurance policy is reached, and it's usually sold in increments of $1 million, up to $5 million. The cost of umbrella insurance can range anywhere from $200 on the low end to over $1,000 for a high limit, according to Trusted Choice, with an average cost of about $380 per year providing $1 to $2 million of protection. However, how much you'll pay for umbrella insurance depends on several factors, like where you live, how much coverage you buy and your risk profile. 

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up
Erin Bendig
Personal Finance Writer

Erin pairs personal experience with research and is passionate about sharing personal finance advice with others. Previously, she was a freelancer focusing on the credit card side of finance, but has branched out since then to cover other aspects of personal finance. Erin is well-versed in traditional media with reporting, interviewing and research, as well as using graphic design and video and audio storytelling to share with her readers.