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How the tools work
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Both tools run in your browser. This page shows the same math and scoring in plain text, so you can check it, or apply it by hand.
Exposure calculator
- Exposed assets = (primary home equity − homestead protection) + other real estate equity + brokerage and cash + business interests + other assets.
- Future earnings (present value) = the sum, for each remaining working year y = 1 to N, of I × (1 + g)y−1 ÷ (1 + r)y, where I is current annual earned income, g is the income growth rate, and r is the discount rate.
- Total exposure = exposed assets + future earnings.
- Gap = the greater of zero and (total exposure − current umbrella limit).
- Rounded starting point = total exposure rounded up to the next $1 million, with a $1 million minimum.
Defaults: income growth 2% and discount rate 4%. Both are adjustable assumptions. The 2% matches the Federal Reserve’s 2% longer-run inflation goal (FOMC Statement on Longer-Run Goals and Monetary Policy Strategy, reaffirmed Jan. 27, 2026, federalreserve.gov). The 4% is a round-number assumption, not a market rate. Retirement accounts are shown but not counted, and an optional homestead amount (capped at home equity) is subtracted. Underlying home and auto limits are not counted, which keeps the estimate conservative. See the worked example.
Umbrella readiness score (1–100)
| # | Checklist item | Weight | Severity | N/A allowed |
|---|---|---|---|---|
| 1 | The umbrella limit is at least equal to net worth, with future earnings considered. | 14 | High | No |
| 2 | Underlying liability limits meet the minimums the umbrella requires. | 12 | High | No |
| 3 | Every home, vehicle, and boat is scheduled as underlying insurance on the umbrella. | 11 | High | No |
| 4 | Trusts and LLCs that own property are named on the umbrella and the underlying policies. | 10 | High | Yes |
| 5 | Watercraft are confirmed covered by size, length, and horsepower, or scheduled underneath. | 9 | Medium | Yes |
| 6 | Teen and young drivers are listed on the auto policy and recognized by the umbrella. | 8 | Medium | Yes |
| 7 | Household employees are addressed, including workers compensation and employment practices. | 7 | Medium | Yes |
| 8 | Rental properties, including short-term rentals, are scheduled and covered. | 7 | Medium | Yes |
| 9 | All underlying policies are in force, with no lapse planned for a renovation, vacancy, or sale. | 6 | Medium | No |
| 10 | Board service is covered by the organization’s D&O, or excess D&O is in place. | 5 | Lower | Yes |
| 11 | Excess uninsured/underinsured motorist coverage is included or was deliberately declined. | 5 | Lower | No |
| 12 | Personal injury coverage (libel, slander, invasion of privacy) is included. | 3 | Lower | No |
| 13 | The program was reviewed in the last 12 months or after the last major life change. | 3 | Lower | No |
| Total when every item applies | 100 |
- Yes earns the item’s full weight. No and Not sure earn zero, because an unknown is treated as a gap until it is confirmed.
- N/A removes the item from the total (allowed only where noted).
- Score = round(100 × points earned ÷ points that apply), kept between 1 and 100.
- Severity: High = the umbrella may not respond at all or may be far too small; Medium = a common claim source that is often excluded or limited; Lower = narrower or less frequent exposures.
Bands
| Score | Band | Rule |
|---|---|---|
| 90–100 | Well positioned | Requires no High-severity item answered No or Not sure; otherwise shown as “Solid, with gaps to close.” |
| 75–89 | Solid, with gaps to close | |
| 50–74 | Meaningful gaps | |
| 1–49 | Significant exposure |
The weights are judgment-based. They reflect how large and how likely an uncovered loss could be if an item is missed. They are not drawn from claim statistics.