If you are are a homeowner or are planning to buy a home in California, you have undoubtedly thought about obtaining California homeowners insurance to protect you and your biggest investment. There are many different insurers and different types of coverage available. The following are several ways to approach insurance needs to make sure you get the right California insurance coverage for your home.
Understanding What You Want to Protect
The purpose of California homeowners insurance is to remove the financial risk associated with a highly valued asset that is susceptible to damage or loss. As someone that owns a home, you should know how much it would cost if the worst scenario took place and your home was completely destroyed by fire or some other disaster. What would it cost to rebuild and what would it cost to replace the contents of that home? Once you know that, you are in a position to know how much coverage you need.
Accidents Do Happen
In addition to protecting the physical structure and contents of your home, liability insurance is the other important component of California homeowners insurance. To protect your home and any other assets from being seized in the event someone is injured while on your property, you should always carry liability insurance. The amount you carry is a function of your net worth and the value of your estate that might be exposed in a law suit filed by an injured party. You should have enough liability insurance to cover the cost of a legal defense as well as any reasonable settlement that might be awarded to an injured party that sues or files a claim against you.