Every family in San Diego is different and has unique personal insurance needs. Some people own a pool, have a second home, travel a lot, have kids in college or have a home-based business. All the things that make your family unique create the need for a personal insurance program designed just for you.
Our team of licensed and friendly professionals is here to help you understand how a well-designed personal insurance program can add value to your financial wellbeing.
Let’s look at some of the many different kinds of coverage found in a typical San Diego homeowner’s policy.
Coverage For The Home Or Structure
A typical homeowner’s policy pays to repair, rebuild or replace your home if it is damaged or destroyed by a covered loss including; a fire, wind damage, hail, lightning or other disasters and losses covered. Most policies also cover separate structures such as a garage; tool shed or outbuilding, generally for about 10 percent of the amount of property insurance you have on the structure of the house.
We recommend you purchase coverage to the full replacement cost of your home. The replacement cost is the amount of money to build the same home with like kind and quality. This is different than the market value of the home, which includes other things such as the value of the plot of land.
Coverage For Personal Property
Personal property can include; furniture, electronics, clothes, art, books, tools, sports equipment, and other personal items. These can be covered if they are damaged, stolen or destroyed by fire, wind damage or other insured losses. The coverage is generally 40 to 60 percent of the insurance you have on the structure of the house. We recommend you create a home inventory and identify the replacement of items you own.
Coverage for personal property coverage includes items stored off-premise. This means you may be covered anywhere in the world. Some companies limit the amount to 10 to 12 percent of the amount of insurance you have for your possessions.
Expensive items like guns, jewelry, furs, art, collectibles, and silverware are covered, but there are usually dollar limits as outlined in the policy. To insure these items to their replacement value, we recommend you purchase a personal property endorsement/ floater and insure the item for their appraised replacement value.
Coverage For Additional Living Costs
Coverage for additional living expense can pay the additional costs of living away from home if there is a covered loss and you need to leave your home during reconstruction or repair. It can cover; hotel bills or apartment expenses, meals and other related costs, over and above your usual living expenses, as outlined in your homeowner’s insurance policy.
All additional living expense coverage has limitations; so we recommend you you’re your policy or call out office for a policy review. Most homeowner’s policies include a time limitation or deductible before coverage begins.
Personal Liability Coverage
Personal liability covers you and your family member living in your home against lawsuits, claims, losses or accidents for bodily injury or property damage that you or family members may cause to other people. It can also pay for damage caused by your pets.
The Personal Liability coverage under your homeowner’s policy usually provides a limit of $100,000 or $300,000. We always recommend increasing this protection with a personal umbrella policy of up to $1,000,000. It can also increase your personal liability, but also your personal auto liability.
The personal liability coverage of your policy pays for both the cost of defending you in court and will pay any judgements awarded up to the policy limits stated in your policy documents.
Some Keys Things To Remember Regarding Your Homeowner’s Insurance.
All homeowner’s insurance policies have exclusions or limitations; these can include but are not limited to:
- Sewer back-up
- Loss of value of your home for real-estate
- Operating a home business
- Renting rooms on VRBO, etc.
- Intentional or Preventable Loss
- Mold Damage
- Pools & trampolines are subject to limitations
- Identity theft
Every homeowner’s insurance policy has a deductible. If you want to save money, ask for higher deductible options.
Here are a few tips that you can implement to help keep your homeowner’s insurance premium as low as possible.
- Use an independent agent; we can shop your coverage with many different insurance companies.
- Keep your home in good repairs
- Inspect your roof annually and make repairs as needed.
- Improve home security
- Install outdoor lights
Remolding projects can increase your homes insurance value.
If you have updated your kitchen, bathroom, or other room, you may need to update your replacement value.
If you have a home based business, you will need a business or commercial insurance policy. Your homeowner’s insurance will not cover any losses arising out of your business.
McCormick Insurance in San Diego does 3 things VERY FAST: San Diego Auto Insurance, Home Insurance & Surety Bonds. We have low rates for San Diego Car Insurance and Home Insurance!