There Are Good Reasons To Call Your Agent
We have found that as you live your life there are changes that occur in which you should let your insurance agent know about. Let’s face it, your life changes; you get a new job, but a new home, rent out a room, drive for a rideshare company, have a child, and more. Here are a few life changes where you need to call your agent to make sure you have the right insurance coverage.
Renting Your Home
There are many new online home rental sites that help you rent out your home or apartment while you are on vacation or if you just need extra income. While this may seem like a good idea, you may want to read your homeowner’s or renter’s polices before moving forward.
Some of the home rental websites may have some level of liability coverage that protects the owner and renter; while other sites only offer secondary insurance above your personal renter’s or homeowner’s insurance. This is the wording on one site…”The Host Guarantee is not insurance and should not be considered as a replacement or stand-in for homeowner’s or renter’s insurance.”
- If you are renting out your primary home or apartment, your personal insurance will most likely not provide coverage. It is important to read your policy and check with our office for your coverage specifics.
- If there is damage or loss to your personal property, you may have to file a claim through the rental website. This process may take months.
- If you own a rental property and it is listed as a rental under your insurance, you should be ok with renting it out.
- Check all references and reviews before you make any decisions about renting out your property.
- There is a difference between a security deposit and damage insurance. Typically, a security deposit is a way to offer an incentive to the renter to encourage them to not damage the property.
- If you are renting out a rental property, you might want to consider an umbrella policy.
Increased Income And Wealth
There are many benefits to having been blessed with wealth. You may have a vacation home, boat, plane, or get to travel the world. But individuals with high net worth have increased risks that need to be managed. Personal insurance policies created for high net worth individuals can have much higher limits than average policies, providing the adequate coverage high net worth individuals need for more expensive homes and automobiles, as well as valuable collections, yachts and aviation.
Many “standard” personal insurance policies have limitations that create the need for a different personal insurance approach.
Personal Insurance Risks For High Net Worth Individuals
- Foreign travel
- Expensive art or gun collections
- Expensive jewelry
- Private aviation
- A greater amount of cash in the home
- Expensive or custom vehicles
- Watercraft that are not covered under a normal policy
- Hired staff
- Custom homes with unique or one of a kind construction
- Homes in foreign countries
- Involvement in charities that create new risks
- Custom furniture or other personal items
- Imported fixtures
Affluent individuals often choose a personal umbrella policy, which provides expanded coverage and increased protection of their assets beyond what is provided under homeowner’s and auto insurance policies
Ride Share Drivers
If you drive your personally owned auto for Uber, Lyft, or even a pizza delivery company, your personal auto insurance will not provide coverage should you be involved in an accident. Uber and Lyft do not provide the needed auto insurance coverage to protect you and your passengers. If you are an Uber or Lyft driver, your personal auto insurance may not cover this exposure. So call our office today to make sure you have the proper coverage.
The reason your personal car insurance doesn’t cover you is an ages old exclusion for hauling others for a fee. This has always been excluded. It’s just been in the spotlight again because of ride sharing services like Uber and Lyft and their mobile phone technology.
This issue became very real in 2016 when an Uber driver hit and killed a 6-year-old girl in San Francisco. The driver had only the state minimum auto liability limits of $30,000. The family sued both the driver and Uber. Uber does offer secondary coverage, but the driver must have a primary auto insurance policy in place.
There are a number of insurance companies now offering specific auto insurance coverage for ride sharing risks.
Here are a few tips for ride share drivers
- Purchase a separate policy with at least a $1,000,000 limit.
- Read any and all agreements so you know what your responsibilities are.
- Keep your vehicle in good working condition.
- Talk to your insurer before signing up and keep things on the up and up.
For more than 3 decades, Wayne McCormick, CIC, of McCormick Insurance Solutions has been serving the insurance needs of San Diegans who are looking for the right coverage for their auto, home, life, motorcycle, boat, RV and more.