A small percentage of people who take out California home insurance do so largely because it is a condition of their mortgage. These policy holders are not interested in purchasing more than the bare minimum home insurance coverage to comply with their legal obligations. However, many other policy holders actively seek to increase their home insurance coverage, and purchase umbrella coverage to supplement the protection of their standard home insurance policies. Do you wonder why they might choose to do this?
Standard home insurance coverage protects the policy holder from the financial consequences of risks associated with property, additional living expenses and liability. Liability coverage pays costs that are incurred if a third party files a lawsuit claiming to have suffered harm because of the policy holder or a member of the policy holder’s family.
Defending lawsuits is expensive; even if no damages are awarded by the court the cost of attorneys’ fees can be high. There is always a risk of being sued for an amount that is higher than the limit of liability coverage of a standard home insurance policy. Policy holders who are concerned about the risk of high liability damages being awarded against them have the option of purchasing umbrella coverage which provides an additional level of liability coverage above the standard home insurance liability limits.
Umbrella coverage provides additional protection for the policy holder’s assets. Talk to your California home insurance agent or insurer if you think that umbrella insurance might benefit you.
Image courtesy of mediabistro.com.
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