Should You Get an Esurance Umbrella Policy?

A million-dollar umbrella policy from Esurance could shield your assets from claims and injuries that standard liability won't cover—but is it right for you?
Written by Claire Beaney
Reviewed by Shannon Martin
If you're looking to safeguard your assets against a wider variety of liability claims than what is usually covered under a standard car or home insurance policy, consider purchasing personal liability umbrella insurance from Esurance.
Hopefully, you'll never incur a legal loss exceeding the amount of coverage you already have on your auto or homeowners policy. But if you ever find yourself in such a position, you risk losing all of your savings or other assets. An umbrella policy can help you avoid that nightmare—but is it the right choice for you?
Let's take a look at Esurance's umbrella insurance policies to see if they're worth purchasing in addition to your
car insurance
or
home insurance
.
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What is an umbrella insurance policy? 

When the liability coverage limits on your auto insurance or home insurance are reached,  the additional coverage from an umbrella insurance policy, also known as a personal umbrella policy (PUP), will kick in to offer extra protection. In addition to the things that a regular liability policy won't pay for, such as emotional distress, umbrella policies will.
The minimum
liability coverage
under an umbrella policy starts at $1,000,000, with limits of $5 million or $10 million available from various insurance providers in $1,000,000 increments. Compared to the typical $300,000 or $500,000 limit on a home or car insurance policy, this is a lot more coverage—and it only costs an average of $150 to $300 per year.
Umbrella insurance only kicks in after the liability limit on your auto or home insurance policy has been reached, and similar limits on other policies have also been met.

How does umbrella insurance work with Esurance? 

Personal liability umbrella insurance is available from Esurance to policyholders who have satisfied the necessary liability limits on their underlying policies, such as car insurance, house insurance, or rental property insurance.
The requirements for an Esurance umbrella insurance policy are (1) living in one of the 43 states it’s available in (which we’ll take a look at below) and (2) having at least $250,000 in liability insurance with the company. Certain states have minimum liability insurance requirements below this threshold, so be sure to check your coverage before applying for an Esurance umbrella policy.

What does Esurance umbrella insurance cover?

When you purchase an Esurance umbrella policy, you'll have protection from losses that would normally be left uninsured by your standard auto liability policy, such as
  • Defamation, slander, and libel
  • Arrests made in error
  • Wrongful prosecution
  • Suffering from mental anguish and psychological harm
If the costs of treating others or repairing their property exceed the limits of your standard home or car insurance, Esurance's umbrella coverage will cover that as well.
Let’s take a look at an example:
Say you cause a car accident that leads to numerous people suffering serious injuries. Their medical expenses total $400,000, which surpasses the $300,000 liability limitations on your car insurance policy. The remaining $100,000 is covered by your umbrella insurance.
Let's say one of the injured parties is a high-earning professional who, due to their injuries, will be out of commission for six months and sues you to cover their lost wages. If your auto insurance liability limits are reached, your assets (such as your home and money) may be at risk if you do not have umbrella insurance.
MORE: How different types of car accidents affect your insurance rates

What it won’t cover

However, as beneficial as this protection is, umbrella insurance only covers some things. Your Esurance umbrella policy will likely have the following exclusions:
  • Injuries or property damage caused by you to your own property
  • Intentional harm
  • Commercial liability
Umbrella policies typically also do not protect against legal consequences for breaking a contract. If, for instance, a roofing company sues you for not paying for the work it performed in accordance with the contract you signed, you won't be able to rely on your umbrella insurance policy to bail you out of financial trouble.
Exclusions are also often made for boats. Some companies only cover boats of a certain size or type, while others only cover them if you have a boat insurance policy. If you have a boat insurance policy with Esurance, talk to an agent about your options for umbrella insurance.

How much does Esurance umbrella insurance cost? 

Umbrella insurance premiums are calculated on a case-by-case basis, taking into account the individual's risk profile and other relevant factors, but the good news is that they are typically quite affordable.
Annual premiums for umbrella liability insurance typically range from $150 to $300. That’s a monthly commitment of just $12.50!

Who can buy a personal umbrella policy from Esurance? 

You need to have primary insurance, such as auto, home, renter's, or motorcycle coverage, in order to purchase an umbrella policy from Esurance. You will also need at least $250,000 in liability coverage on your Esurance to apply for an umbrella policy.
Unfortunately, Esurance doesn’t offer umbrella coverage in every state. Customers in the following states cannot purchase umbrella coverage from Esurance:
But if you live in one of the 43 states that Esurance does serve, consider whether or not this insurance is for you.
  • You have a high net worth
  • You are concerned about protecting your future earnings 
  • Your property has a swimming pool, trampoline, swing set, or tree house
  • You live with
    teenagers who drive
  • You are legally responsible for children of any age
MORE: How to get cheap car insurance for young drivers

Is an Esurance personal liability umbrella policy worth it? 

Is the extra cost for an Esurance umbrella policy worth it? Let's weigh the pros and cons of buying this extra coverage.

Pros

…it has higher limits. A hospital stay following a car accident can cost upwards of $60,000, while the average value of a car is $48,000. The
costs associated with an accident
, even a relatively minor one, could quickly add up if you didn't have umbrella insurance.
…it’s not too expensive. When you add umbrella coverage to your insurance, it usually costs between $12.50 and $25 more per month.
...it protects you from things that your home or car insurance won't cover. For example, if you don't have umbrella coverage, the cost of legal representation against defamation or mental anguish could wipe out your savings and take over your time.

Cons

...it won't pay for your own injuries or damage to your own property. Because the higher limits of an umbrella policy will not apply to your own losses, increasing your property damage coverage with something like
collision
or
comprehensive coverage
may be a better idea if you are currently carrying only the bare minimum.
…it’s not available for everyone. You may not be able to add umbrella coverage to your policy based on where you live, different risk factors, and prior loss history.
…it costs more. Even though adding umbrella coverage to your policy isn't too expensive, you need to meet high coverage limits first. This makes it a better choice for people who already have high liability limits.

The bottom line

Purchasing an Esurance umbrella policy is a great way to safeguard your financial future if your current liability limits are insufficient to cover the value of your assets.
But if you haven't exhausted your policy's liability limits or bought property damage insurance, you should build up your coverage first before purchasing umbrella insurance.
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