Liability
How much umbrella insurance do you need?
Most households that need an umbrella need $1 million, and it costs less than a streaming bundle. Here is how to tell whether you are one of them.
Published
Read time
5 min read
By
Signe Stellhorn
An umbrella policy adds liability coverage on top of your home and auto policies. It pays when a judgment or settlement is larger than those limits, and it pays for your defense.
Who should consider one
Households with a teen driver or a long daily commute
Homeowners with a pool, a trampoline or a dog
Landlords and anyone with significant savings or home equity
Picking a limit
A common starting point is enough coverage to protect your net worth plus a few years of future income. For most of our clients that lands at $1 million; households with rental property or a high income often choose $2 million.
What it costs
In our 2026 examples a $1 million umbrella ran $14 to $30 a month for a household with two cars. The carrier will ask you to raise your auto liability to $250,000/$500,000 and your home liability to $300,000 first, which adds a little to those policies.
The question to ask your agent: what limits do my home and auto policies need under an umbrella, and what does the whole package cost?
General information, not advice
This guide explains how insurance generally works. Premiums in examples are illustrations, not quotes or offers of coverage. Policy wording differs by carrier and your situation is your own, so talk to a licensed agent before you decide.
