Estimate your annual rate for excess liability coverage.
1 Million ($1,000,000)
2 Million ($2,000,000)
3 Million ($3,000,000)
4 Million ($4,000,000)
5 Million ($5,000,000)
10 Million ($10,000,000)
Rural / Low Risk
Suburban / Medium Risk
Urban / High Risk (Litigious Area)
Most carriers require 250/500k auto and 300k home liability.
Estimated Annual Premium
$0.00
Per Year
function calculateUmbrellaRate() {
// Inputs
var coverage = parseInt(document.getElementById("coverageAmount").value);
var riskFactor = parseFloat(document.getElementById("riskLocation").value);
var props = parseInt(document.getElementById("numProperties").value);
var vehicles = parseInt(document.getElementById("numVehicles").value);
var youth = parseInt(document.getElementById("youthDrivers").value);
var recs = parseInt(document.getElementById("recVehicles").value);
var underlying = document.getElementById("underlyingCheck").checked;
// Validation
if (isNaN(props) || props < 0) props = 0;
if (isNaN(vehicles) || vehicles < 0) vehicles = 0;
if (isNaN(youth) || youth < 0) youth = 0;
if (isNaN(recs) || recs 1) {
propSurcharge = (props – 1) * 40;
}
// Extra vehicles (beyond 1) often ~$40-$50 each
var vehicleSurcharge = 0;
if (vehicles > 1) {
vehicleSurcharge = (vehicles – 1) * 45;
}
// Young drivers are high risk: ~$100-$200 surcharge
var youthSurcharge = youth * 150;
// Recreational vehicles: ~$50-$100 each
var recSurcharge = recs * 60;
// Underlying limit penalty (Gap coverage is rare, usually they just deny,
// but for calc purposes we add a 'gap' premium or high risk load)
var limitSurcharge = 0;
if (!underlying) {
limitSurcharge = 200; // Penalty for not meeting underlying reqs
}
// Total calculation before location risk
var subTotal = baseRate + propSurcharge + vehicleSurcharge + youthSurcharge + recSurcharge + limitSurcharge;
// Apply Location Risk Factor
var totalPremium = subTotal * riskFactor;
// Display Logic
var displayVal = Math.round(totalPremium);
var resultBox = document.getElementById("resultBox");
var resultVal = document.getElementById("umbResult");
var breakdown = document.getElementById("umbBreakdown");
resultBox.style.display = "block";
resultVal.innerHTML = "$" + displayVal.toLocaleString();
// Breakdown explanation
var breakdownHTML = "Breakdown:";
breakdownHTML += "Base Rate (" + coverage + "M): $" + baseRate + "";
if (propSurcharge > 0) breakdownHTML += "Additional Properties: +$" + propSurcharge + "";
if (vehicleSurcharge > 0) breakdownHTML += "Vehicles: +$" + vehicleSurcharge + "";
if (youthSurcharge > 0) breakdownHTML += "Young Drivers: +$" + youthSurcharge + "";
if (recSurcharge > 0) breakdownHTML += "Rec. Vehicles: +$" + recSurcharge + "";
if (limitSurcharge > 0) breakdownHTML += "Underlying Limit Surcharge: +$" + limitSurcharge + "";
if (riskFactor !== 1.0) {
var riskTxt = riskFactor > 1 ? "Increase" : "Decrease";
breakdownHTML += "Location Risk " + riskTxt + ": " + Math.round((riskFactor – 1) * 100) + "%";
}
breakdown.innerHTML = breakdownHTML;
}
How Is Your Umbrella Insurance Rate Calculated?
An umbrella insurance policy provides extra liability coverage that goes beyond the limits of your homeowners, auto, or watercraft insurance. It is designed to protect your assets and future income from lawsuits that exceed your primary policy limits.
Calculating the "rate" or premium for an umbrella policy is not a flat fee. It relies on a risk assessment formula used by insurance underwriters. While the first $1 million in coverage is the most expensive part of the policy (the "base rate"), increasing your coverage to $2 million or $5 million costs significantly less per million.
Key Factors Influencing Your Premium
Number of Properties: Each additional property you own (vacation homes, rentals) increases the likelihood of a premises liability claim (e.g., someone slipping and falling).
Number of Vehicles: Auto accidents are the most common trigger for umbrella claims. More cars on the road equal higher exposure.
Young Drivers: Drivers under the age of 25 are statistically more likely to be involved in serious accidents, leading to a "youthful operator" surcharge on your umbrella rate.
Location (Risk Profile): Premiums are often higher in litigious areas (where lawsuits are common and settlements are high) or major urban centers compared to rural areas.
Recreational Assets: Owning boats, jet skis, RVs, or motorcycles adds specific liability risks that must be accounted for in the rate.
Understanding Underlying Limits
Umbrella insurance is not a replacement for primary insurance; it is a top-up. To qualify for a standard umbrella rate, you must maintain minimum liability limits on your primary policies.
Typically, insurers require:
Auto Insurance: $250,000 per person / $500,000 per accident for bodily injury.
Homeowners Insurance: $300,000 in personal liability.
If your underlying policies do not meet these thresholds, you may either be denied coverage or have to pay a "gap" premium, effectively self-insuring the difference.
Why Is the Rate for the First Million Higher?
The first $1 million of coverage acts as the first line of defense after your primary insurance is exhausted. It is the layer of coverage most likely to be hit in a severe claim. Subsequent millions (e.g., going from $1M to $2M) have a lower probability of being utilized, so the rate per million decreases as the total coverage limit increases.