How much umbrella insurance coverage should I buy?

A common guideline is to buy umbrella coverage at least equal to your net worth, and ideally a bit more to account for future earnings a lawsuit could target. So if you've accumulated $1.5 million in home equity, savings, and investments, $1.5 to $2 million of umbrella coverage is a reasonable target. Because umbrella policies sell in $1 million layers and additional millions get cheaper, jumping from $1 million to $2 million often adds only $75–$150 a year. Insurers require you to carry minimum underlying liability limits first — usually around 250/500 on auto and $300,000 on homeowners — before the umbrella attaches. Don't forget your future income: a judgment can garnish wages for years, so people early in a high-earning career sometimes carry more than their current net worth would suggest. Add up your assets first at wealthserene.com/tools/net-worth.