Personal liability coverage calculator

Why liability coverage amount matters

Liability coverage is the most consequential insurance decision many people make without thinking about it carefully. The default $100,000 in a standard homeowners policy was set decades ago and has not kept pace with medical costs, litigation awards, or household net worth growth. A serious injury lawsuit today can easily reach $300,000-$1,000,000+ in combined medical bills, lost wages, and pain and suffering damages.

The coverage gap problem

Most Americans have more net worth than they have liability coverage. Someone with $400,000 in home equity, savings, and investment accounts who carries only $100,000 in home liability coverage has a $300,000 exposure gap. A single significant lawsuit judgment could wipe out decades of savings. Increasing liability limits costs surprisingly little — going from $100,000 to $300,000 in home liability often adds $15-$30/year to your premium.

Stack home, auto, and umbrella

The most comprehensive liability protection strategy layers home and auto liability limits (which protect against specific incidents) with an umbrella policy (which covers everything above those limits). Together, you can maintain $1.5M-$2M in total liability protection for $600-$900/year — a modest cost relative to the risk it covers.

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