Umbrella Policy Coverage Gap Calculator

Determine whether your existing liability coverage is sufficient or if you have a coverage gap that an umbrella policy should fill.

Your Assets (Total Exposure)

Existing Liability Coverage

Risk Profile Adjustments

Formulas Used

Total Assets = Home Value + Other Real Estate + Vehicle Value + Savings & Investments

Future Income Exposure = Annual Income × Years to Protect

Total Exposure = Total Assets + Future Income Exposure

Risk-Adjusted Exposure = Total Exposure × Risk Multiplier

Highest Underlying Limit = max(Home Liability, Auto Liability, Other Liability)

Total Existing Coverage = Highest Underlying Limit + Existing Umbrella

Coverage Gap = max(0, Risk-Adjusted Exposure − Total Existing Coverage)

Recommended Umbrella Limit = Coverage Gap rounded up to the nearest $1,000,000

Coverage Adequacy Ratio = (Total Existing Coverage ÷ Risk-Adjusted Exposure) × 100

Estimated Annual Premium = (Recommended Umbrella Limit ÷ $1,000,000) × Cost per $1M

Assumptions & References

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