CalculateRealEstateROI

Risk Management

How much liability insurance do I need?

$1M property liability + $2M umbrella minimum; higher if net worth exceeds $1M.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Direct answer

$1M property liability + $2M umbrella minimum; higher if net worth exceeds $1M.

Expanded explanation

Liability should exceed your net worth — judgments above coverage pierce personal assets. Umbrella is cheap insurance ($300–500/yr per $1M).

Examples

  • $3M net worth → $1M underlying + $3M umbrella.

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