do i really need umbrella insurance? 4 common scenarios you may face

Insurance exists so you can tackle the unexpected without shelling out all of your hard-earned savings (and then some). Umbrella insurance goes a step beyond that — it extends the limits of your primary policies, rendering your coverage that much more valuable.

Though your home and auto policies offer extensive protection, there's always the possibility that an unfortunate incident could wind up costing you hundreds of thousands or even millions of dollars in legal fees or property damage. And then what do you do? That's where umbrella insurance comes to your aid.

An umbrella insurance policy kicks in after you have a costly accident once you've exceeded the limits of your home and auto policies. Here are 4 scenarios in which it could come to your aid.

1. if you get into an accident involving multiple cars

You're a responsible driver, so you have car insurance. Seems simple enough, right? But if you're ever found at fault for a major accident involving several cars carrying multiple passengers, your auto coverage may not cover enough to keep you from digging deep into your savings (or going deep into debt). Even if everyone involved walks away unscathed, the damage to the cars alone could cost far more than what traditional auto insurance covers.

2. if a visitor is injured

Got a swimming pool, trampoline, or playground equipment in the backyard of your home? If your child has a friend over after school and they suffer a serious injury while playing, you could be responsible for some hefty medical bills and even an expensive lawsuit. While a homeowners insurance policy offers liability protection, you're stuck paying for anything over your coverage limit. That's where umbrella insurance comes in handy.

3. if you’re a landlord

Whenever you rent to a tenant, you're opening yourself up to greater risk. If someone renting a place from you is injured on your rental property, for instance, they could possibly bring a lawsuit against you. And though you probably have landlord insurance (or at least you should!), it's smart to secure your savings with some additional coverage. Aside from requesting or requiring that tenants purchase renters insurance to protect their belongings and liability, your best bet for protecting your own liability is umbrella insurance. It's great just-in-case coverage — especially if you own more than one property.

4. if your dog bites someone

Let's say you're taking your beloved pup for a stroll around the block. If your dog nips and injures a stranger, it could potentially cost you thousands of dollars in medical treatment and maybe even bring about a nasty lawsuit. Dog-bite liability claims can be incredibly costly, depending on the damage done by your 4-legged friend. And if you max out any protection you may have on your homeowners policy, that gap in coverage could easily be thousands more than you've got in the bank. An umbrella policy could help save you and your pooch from financial ruin.

added protection with umbrella insurance

Umbrella insurance is a valuable resource for anyone who could be liable for an accident worth more than they've got in the bank. Plus, protection even extends to other people in your household. Grab an umbrella insurance quote through Esurance and see how much better protected you and your assets could be.

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Speak to an umbrella insurance expert today. Call 1-855-232-1441 to get your free quote (M–F, 6 a.m.3 p.m. PT)

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