3 minute readUmbrella
A common rule is at least the value of your net worth, rounded up to the next million. Consider future earnings too, since judgments can attach to wages. Most households start at $1,000,000 and step up as assets grow, because each additional million costs far less than the first.
What you need to know
Start with net worth
Home equity, savings, investments, and business value form the floor.
Add exposure factors
Teen drivers, rental property, and high-visibility work argue for more.
The second million is cheap
Incremental limits typically cost a fraction of the base layer.
Common mistakes
- Assuming umbrella coverage is only for wealthy households.
- Buying an umbrella while leaving underlying limits below the carrier's requirement.
- Ignoring exposures like pools, dogs, teen drivers and rental property.
- Sizing the limit to current assets while ignoring future income.
- Assuming a personal umbrella covers business activities.
When to talk to an agent
Talk to an agent if you own a home, rent out property, have a teen driver, host often, sit on a board, or simply want your assets and wages protected against a large liability claim.
Frequently asked
This article is general information, not a policy or a promise of coverage. What your policy pays depends on its specific terms, limits and exclusions. Ask us to review your actual policy before making a decision.