We Provide Answers to Your San Diego Insurance Questions

Over the years, our team of professionals has been asked hundreds of personal insurance questions.  We thought it would be helpful to our clients to compile a list of the top questions we have been asked along with our responses.

We Are the Insurance Professionals

Securing the proper personal insurance coverage for a family is not as simple as choosing a new rug or chair.  First, you have to determine what kind of coverage best suits your family’s individual needs.  Then, you have to figure out from whom to buy the insurance to get the right products at the best price.  Factor in the large number of insurance companies seeking your business, and the countless ways to mix and match different policies, and it can quickly become an overwhelming and stressful situation.

Here are some of the most frequently asked insurance questions and our answers:

“How is replacement cost determined with my homeowners insurance?”

“Replacement cost,” for insurance purposes, is based on the cost to repair or rebuild your home with the “like kind and quality” of materials.  It is designed to put your home back to pre-loss condition.  “Market value” is a real estate term used to determine the amount for which your home might sell.  Important factors in determining this amount include the quality of materials, type of roof, location, etc.

“What extra personal insurance coverage types might I need?”

It is our hope and desire that you never need to make a claim, but if you do, you want the best possible combination of coverage, price, and service.  Here are some added coverages you might want to consider.

  • Flood
  • Earthquake
  • Higher limits on jewelry
  • Coverage for collections, art, guns, and coins
  • Umbrella liability
  • Coverage for back-up of sewers caused outside the home

 “I own and operate a business out of my home. Is that covered?”

No, any business that operates out of your home is excluded under your homeowner’s policy.  You will need to purchase a business policy to cover this.

“I rent out a few rooms in my home on vacation rental sites, do I need special coverage?”

You will need special coverage if you rent rooms to other parties as a business.  Depending on your policy, coverage may be added to your homeowner’s policy, but you may need to buy a separate policy.

“What are some of the typical or common exclusions found in my homeowner’s insurance policy?”

No two policies are alike, so it is hard to answer this question.  However, here are some of the “common” exclusions found in many homeowners insurance policies:

  • Earthquake
  • Flood
  • Wear and tear
  • Intentional damage
  • Sewer back-up
  • Damage to vehicles
  • War
  • Nuclear hazard
  • Governmental action
  • Ordnance and law
  • Neglect

“Are other structures covered under my homeowner’s insurance policy?”

Your homeowner’s insurance policy covers your home.  In addition, it includes other structures and home-related fixtures on your property such as a pool, fencing, decks, lighting, and similar features that may not be directly attached to the main structure, but are still part of the home or property.  These usually have specific limits, so it pays to review your policy to make sure you have the right kind of coverage.

“I own a large boat. What kind of insurance might I need?”

Converge for a yacht can be different from coverage for a ski boat.  Here are some of the kinds of watercraft coverage you might need:

  • Agreed Value Option
  • Property Coverage
  • Emergency Towing and Assistance
  • Liability Protection
  • Longshore and Harbor Workers’ Compensation Act (LHCWA) if you have a crew.
  • Hurricane Haul-Out

“When is a vehicle considered a classic?”

For insurance purposes, a classic car is at least 25 years old or older, depending on the make and model.

“How often should I review my personal insurance program?”

We recommend an annual review of all your personal insurance needs.  This might be a call or face-to-face meeting, depending on your needs.  If you have made some life changes, we always recommend a review at that time.  Some life changes that will affect your personal insurance include:

  • Change in marital status
  • Birth of a child
  • Purchase of a new car or any other major purchase
  • Planning international travel
  • Children heading off to college
  • Retirement
  • Job change
  • Accident

“Should I ever consider increasing my deductibles?”

Changing your deductibles on your auto or home insurance depends on your risk appetite.  It is true that increasing deductibles will save you money, but there are other factors that you might also consider.

  • How much increase is desired?
  • Do you have a history of losses?
  • Do you have the financial resources to handle it?
  • Is the cost-benefit worth the risk?

We can compare your home insurance rates with 40 carriers in one call to save you money!

As an independent broker in San Diego, McCormick Insurance partners with AM Best-rated homeowners insurance carriers.  This means we offer competitive, comparative rates from nationally known insurance providers.