A typical $1 million personal umbrella policy usually costs a few hundred dollars a year. According to Progressive, citing a report from ACE Private Risk Services, the average is $383 a year for a household that owns one home, has two cars and has two drivers.[1] Each additional million generally costs less than the first. Premiums go up with more drivers or younger drivers, or if you own rental properties, pools, dogs or boats. Generally you must carry at least $250,000 of liability coverage on your auto policy and at least $300,000 on your homeowners policy underneath it to get an umbrella.[2]
This article discusses what drives umbrella pricing, the underlying limits insurance companies require, and how to choose an adequate limit for your coverage; it also covers your options if your home insurer will not sell you an umbrella. Menlo quotes stand-alone personal umbrellas that sit on top of your existing home and auto policies; our umbrella insurance page starts a quote.
How much does a personal umbrella policy cost?
Normally a few hundred dollars a year for the first $1 million. The most-cited figure (which Progressive cites from an ACE Private Risk Services report) is $383 per year for a household with one house, two cars and two drivers; Progressive also states, citing Money.com, that each additional $1 million typically costs about $75 more.[1] Use these as rough national benchmarks: what you'll pay depends on your own household and state.
An umbrella is so much cheaper than auto or homeowners insurance because it only pays out once you exhaust the limit of your underlying policy. Most claims do not get there.
What makes an umbrella more or less expensive?
The number and kind of things you have, at home and on the road, that could lead to a lawsuit. Progressive lists location, driving record, prior home claims, credit history and how many homes, cars and other vehicles you own, like boats, motorcycles and RVs.[1] Monoline's application lists each one separately: all the drivers in your household along with their driver's license numbers, and counts of autos and motorcycles, watercraft, golf carts, ATVs and RVs, secondary residences, rental dwellings and vacant lots.[4]
| Household factor | Effect on price |
|---|---|
| More drivers, especially teenage drivers | Raises it; auto accidents are the most common large claims |
| Violations or accidents on a driver's record | Raises it, or can make the household ineligible |
| Rental properties you own | Raises it; each rental adds tenant and visitor exposure |
| Pool, trampoline or dog | Raises it; injuries on your property are a liability claim |
| Boats, jet skis, ATVs, RVs | Raises it; each must also carry its own underlying liability |
| Higher umbrella limit | Raises it, but each extra million costs less than the first[1] |
What underlying coverage do I need for an umbrella?
Typically $250,000 of liability on an auto policy and $300,000 on a homeowners policy are required to buy a $1 million umbrella.[2] Monoline will accept auto limits of $250,000/$500,000/$100,000 from underlying carriers rated B+ or higher.[5] It is worth checking this before you shop for an umbrella, since many California drivers carry far lower limits. The state minimum limits increased on January 1, 2025 to $30,000 per person, $60,000 per accident and $15,000 for property damage.[3] If your auto policy is near the minimum, you will need to raise your limit as well, and that is part of the real cost of the umbrella.
If the umbrella calls for a specific limit and your underlying policy has a lower one, you could find yourself paying the difference out of pocket after a claim, so make sure your underlying limits match what the umbrella requires.
How much umbrella insurance do I need?
Enough to cover what a successful lawsuit could reach: your savings, investments, home equity and future wages. Begin by calculating your net worth, add an allowance for future income you will earn, and round up to the next million. Most households start at $1 million and go higher when they own rental property, have teenagers who drive, or have more assets to protect.
California's statistics show how the underlying limits alone can run out. In 2025 there were 2,830 insurance claims in California for dog bites and dog-related injuries, more than any other state, and those claims averaged $81,789 each.[6] An auto accident that seriously injures several people could exceed a $250,000 auto limit by itself. A stand-alone umbrella lets you buy $1 million to $5 million of coverage, and Monoline also offers an optional additional $1 million of uninsured and underinsured motorist coverage.[5]
What if my home insurer won't sell me an umbrella?
Buy a stand-alone umbrella. Many home insurers only sell an umbrella to the home and auto customers they already serve. In California that leaves out owners whose home is on the FAIR Plan or a surplus lines policy, and people who keep home and auto with different companies. A stand-alone umbrella is placed above whichever eligible policies you already have. Monoline's is filed and admitted, issued through Concert Group Insurance and reinsured by Convex, which A.M. Best rates A (Excellent).[5] Its coverage applies over both short-term and long-term rentals, as well as over motorcycle, boat, jet ski, RV and golf cart policies.[5]
One issue for FAIR Plan owners is that the FAIR Plan dwelling policy has no liability coverage, so any home liability an umbrella requires will have to come from a DIC policy or another liability policy underneath it.[7] Our guide on home insurance after a non-renewal explains how to combine the FAIR Plan and a DIC. A personal umbrella does not cover business liability; see umbrella vs. excess liability for the commercial version.
Frequently asked questions
How much should a $1 million umbrella policy cost?
A few hundred dollars a year for many households. The published average is $383 a year for one home, two cars and two drivers.[1]
At what net worth should you get an umbrella policy?
There is no fixed number. If a judgment larger than your auto or home liability limit could reach your savings, home equity or future wages, an umbrella is worth pricing.
What underlying limits does an umbrella need?
Can I buy an umbrella from a different company than my home and auto insurer?
Yes. A stand-alone umbrella sits over qualifying policies from other insurers, so you can keep your current carriers.[5]
This guide is for educational purposes and summarizes published consumer information from the Insurance Information Institute and Progressive, California law, and carrier program information. Price figures are national averages published by others, not a Menlo quote. Coverage, eligibility and prices change, and your policy's terms control. Menlo Insurance Services (CA license 6020106) is a licensed broker that may earn a commission on a placement and does not guarantee that any coverage or price will be available.
The Bottom Line
A typical $1 million personal umbrella usually costs a few hundred dollars a year, with a published average of $383 to insure one home, two cars and two drivers.[1] First line up the underlying limits, usually $250,000 on auto and $300,000 on home, then size the umbrella based on how high a lawsuit might reach.[2] If your home insurer will not write one, a stand-alone umbrella can sit over the other policies you currently have in place.[5]
References
- 1.Progressive. “How much does umbrella insurance cost?.” Accessed 2026-09-27. https://www.progressive.com/answers/umbrella-insurance-cost/ ↩
- 2.Insurance Information Institute. “Should I purchase an umbrella liability policy?.” Accessed 2026-09-27. https://www.iii.org/article/should-i-purchase-an-umbrella-liability-policy ↩
- 3.California Legislative Information. “Senate Bill 1107 (2022): minimum auto liability limits from January 1, 2025.” Accessed 2026-09-27. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220SB1107 ↩
- 4.Monoline. “Personal umbrella application (eligibility, drivers and exposure counts) as walked by Menlo, September 2026.” Accessed 2026-09-25. https://app.monoline.com/ ↩
- 5.Monoline. “Personal umbrella insurance for agents.” Accessed 2026-09-27. https://www.monoline.com/ ↩
- 6.Insurance Information Institute. “Spotlight on: Dog bite liability.” Accessed 2026-09-27. https://www.iii.org/article/spotlight-on-dog-bite-liability ↩
- 7.California FAIR Plan Association. “Dwelling policies.” Accessed 2026-09-27. https://www.cfpnet.com/policies/dwelling/ ↩