Estimate your needed liability limits
Estimated exposure
$525,000
Recommended liability tier:
500/500/100 + $1M umbrella
Formula
Recommended liability per accident = (Home equity + Retirement + Other assets + 5× annual income), rounded up to nearest 100/300/250/500/1M tier.
How to use it
- Add up your home equity (market value minus mortgage)
- Add retirement accounts and investments
- Add other significant assets
- Multiply your annual gross income by 5 (a typical wage-garnishment exposure)
- Compare the total against standard liability tiers — round up
Worked example
Family with $80k home equity, $120k retirement, $90k income → ~$650k exposure → carry 500/500/100 plus $1M umbrella.
Frequently asked questions
Does Texas require this much liability?
No — Texas only requires 30/60/25. But minimum limits leave most households exposed to lawsuits.
What is an umbrella policy?
A separate $1M+ policy that sits on top of your auto and home liability. Typically $200–$400/year.
This calculator is for educational estimation only. For a binding quote, talk to a licensed Texas insurance agent or request a free quote.