The short version
In 2026, a $1 million personal umbrella policy typically costs $250–$550 per year — a national average around $375, or roughly $31/month. Each additional million usually adds only $75–$150 per year, so bigger policies get cheaper per million: a $2M policy runs about $325–$650/year and a $5M policy about $500–$950/year for a typical household. The Insurance Information Institute's headline range ($150–$300) still applies to the simplest profiles, but litigation inflation has pushed real quotes upward — premiums are up roughly 15% from 2024.
Umbrella insurance cost by coverage amount (2026)
| Coverage | Typical annual cost | Per month | Cost per $1M |
|---|---|---|---|
| $1 million | $250 – $550 | ~$21 – $46 | $250 – $550 |
| $2 million | $325 – $650 | ~$27 – $54 | $163 – $325 |
| $3 million | $400 – $800 | ~$33 – $67 | $133 – $267 |
| $5 million | $500 – $950 | ~$42 – $79 | $100 – $190 |
| $10 million | $900 – $1,500+ | ~$75 – $125+ | $90 – $150 |
Quick cost estimator
Educational estimate only, built from published 2026 national ranges — not a quote. State, driving record, and carrier underwriting set your real price.
What moves your premium
- What the umbrella sits on top of. More homes, vehicles, boats, and drivers = more ways a claim can start = higher premium. One published example: a household adding 2 extra homes, 2 extra cars, a boat, and an under-25 driver saw its $10M premium jump from $999 to $1,578.
- Risk features. Teen drivers are the single biggest multiplier. Pools, trampolines, certain dog breeds, and rental properties all raise the price — because they raise the odds of the lawsuit the policy exists for.
- Your state. Jury-verdict severity varies wildly. FL, CA, NY, and NJ run 20–40% above national averages.
- Your record. Clean driving and claims history keeps you in the low band; some carriers now give umbrella credit for telematics-verified safe driving.
The underlying-coverage catch
Carriers won't sell you an umbrella unless your base policies carry minimum liability limits — typically $250K/$500K bodily injury on auto and $300K personal liability on homeowners or renters. If you currently carry state-minimum auto limits, raising them is part of the real cost of getting the umbrella. Budget for both when comparing.
Most people add an umbrella through their existing carrier
Bundling the umbrella with your auto/home insurer is usually cheapest and simplest — start by asking your current carrier for a quote, then compare a standalone carrier like RLI if you're declined or quoted high.
Compare home insurers first →Is it worth it?
The honest framing: most people never use their umbrella, which is exactly why it costs $25–$45/month. But 13% of personal liability awards exceed $500,000 and 7% exceed $1 million — beyond nearly everyone's auto and home limits — and judgments can attach to future wages, not just current assets. You don't need to be wealthy to be sued like you are. If you own a home, have savings, or earn a solid income, $1M of coverage for a few hundred dollars a year is among the best dollar-for-dollar protection in insurance.
How much to buy is a separate question — the short answer is at least your net worth, adjusted for risk factors. We break that down (with a worksheet) in how much umbrella coverage you need.