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Many people don’t believe they need more than the usual coverage for homeowners, health, auto, and other types of insurance—until suddenly they get into a situation where their current policy doesn’t provide enough coverage. These situations can be surprisingly common—and many insureds are surprised to find they’re underinsured. Here are a few situations where an insured might need an umbrella policy.

When they drive a car. This might seem like too much of a blanket statement, but approximately 85% of claims relevant to umbrella insurance are auto claims. Many auto insurance policies offer payouts at around $100,000-$300,000, and the health care and legal costs of an insured’s accident victim, for example, could exceed $1 million.

Insureds don’t have to have a history of dangerous driving in order to be involved in a tragic accident in which the costs exceed the typical auto insurance policy payout. Umbrella policies offer another level of protection, often at $1 million or $2 million.

When they own a home. Many people who have homeowner policies are not prepared when someone gets injured on their property and sues. People who choose to buy an umbrella policy often have a pool, a trampoline, or some other dangerous feature on the property and want protection in case a child gets injured and the parents sue. But this can also happen if someone falls down the stairs, slips on the homeowner’s walkway, or if another run-of-the-mill accident happens.

When they have a blog or social media account. Lawsuits can happen at the most unexpected times. In the days of social media, it isn’t unheard of for people to sue when they feel someone they know has made a slanderous comment about them on social media or in a blog post. Insureds don’t need a large platform on a social media account to be vulnerable to these lawsuits. Parents can be sued if their children write insulting things about someone they know on Facebook or Twitter; and a CEO or celebrity can sue an ordinary person who makes defamatory statements about them online.

When they have anything to lose. Many people believe that if they aren’t millionaires themselves, they don’t need an umbrella policy—and that no one can successfully sue them for money they don’t have. But lawsuits can take more than an insured’s bank account. A judge can decide to garnish future earnings, or force a plaintiff to sell a home if the home’s equity is part of the judgment. Plaintiffs stand to lose retirement funds and investments as well.

Even if a lawsuit is judged to be without merit or the accused person wins, they still have to spend money to defend themselves in court. Defamation lawsuits over statements made on social media are becoming more common, and anyone can be hit with a situation anytime where the typical coverage on their home, auto, or other policy won’t cut it. Insurance agents do their customers an important service by explaining what umbrella policies are, and why people need them.