How much Homeowner's Insurance coverage is enough for my home?
Most people find that "enough" means a sufficient amount to rebuild their
home. Remember that the foundation and the land are not covered under the policy and therefore will not figure into an insurance
settlement. When determining the replacement cost of your home do not use the sale price, the tax assessment or the value
the mortgage company calculated. All these can vary greatly from the construction costs. Also, if your home is non-standard,
such as a home with unique features including ornate or hand-carved woodwork, stainedglass windows, etc., make sure you bring
this to your agent’s attention. These are considerations that might not be addressed in a standard homeowners’
policy replacement valuation, unless you bring it to your agent’s attention prior to the underwriting of the policy.
If you don’t, you may discover you are underinsured when you have a claim. You should also evaluate your personal belongings
and ask your agent about the options for covering these items. Finally, most homeowners’ policies include personal liability
protection. Be sure to speak with your agent concerning your liability coverage needs.
Source: Massachusetts Department
of Insurance
My homeowners policy contains coverage for specific (Scheduled)
items. What happens at the time of a loss?
In most cases, insurance companies have the option to replace the item, if possible,
through their vendor of choice. They do this because they generally can replace your item at less cost because of their ongoing
business relationship with a specific vendor. Should you decide not to replace the item, your insurer may pay you only the
amount that they would have spent to replace the item through their vendor. Fine art items are generally covered for the scheduled
amount in the policy.
Source: Massachusetts Department of Insurance
My insurance company just notified me that they are not renewing my policy. Can they do this
and are they required to send me a non-renewal notice by Certified Mail?
Under Massachusetts law, an insurer is not required to write or renew your policy. However,
if your insurer decides not to renew your policy, they must notify you of their decision at least 45 days prior to the policy’s
expiration date. Your insurance company does not have to send you a notice by certified mail. They are only required to use
first-class mail to the address listed on your policy.
Source: Massachusetts Department of InsuranceMy insurance company did not renew my policy. Where else could I purchase insurance?
You have several options if your insurance is not renewed. First, you can check with
us to see if we write homeowners policies for other carriers. Second, you can inquire about obtaining insurance through the
Massachusetts Property Insurance Underwriting Association (FAIR PLAN). It makes insurance protection available to individuals
who are having difficulty getting insurance for their home. You can contact the FAIR PLAN directly. Their phone number is
(617) 723-3800 or 1-800-392-6108.
Source: Massachusetts Department of Insurance
My home sustained a water loss last winter due to melting ice dams on the roof. What would
be covered under my homeowners policy?
Generally damage to both the exterior and interior of a home resulting from weight of
ice and snow or ice dams is covered under a homeowners policy. However, only the area damaged in the loss will be covered.
Further damage sustained due to wear and tear or neglect will not be covered.
Source: Massachusetts Department of
Insurance
My home was recently broken into and I do not have sales receipts for the stolen items. What
will the insurance company accept for proof of ownership?
If the actual receipts are not available, insurance companies generally will accept
photos, warranties, owners manuals, cancelled checks, credit card receipts, bills, servicing agreements, even video tapes,
as proof of ownership. We suggest that you consider video taping your home before a loss.
Source: Massachusetts
Department of Insurance
When can an insurance company cancel my homeowners coverage during the policy term?
According to Massachusetts General Laws Chapter 175, Section 99 (12), your policy can
be cancelled for these reasons:
- Non-payment of premium;
- Material misrepresentation/Fraud;
- Conviction
of a crime arising out of acts increasing the hazard insured against. (For example, conviction for illegal storage of fireworks);
- Discovery of willful or reckless acts or omissions by the insured increasing the hazard insured against. (For example,
not getting a gas leak fixed);
- Physical changes in the property insured which result in the property becoming uninsurable.
(For example, should the home become vacant for more that 60 consecutive days, there is automatically assumed to be a greater
exposure to vandalism and damage); and
- A determination by the Commissioner of Insurance that continuation of the
policy would place the insurance company in violation of the law.
Source: Massachusetts Department of Insurance
I have specifically insured antique items listed on my homeowners policy. If I have a total
loss, would the insurance company pay me their insured value?
Your insurance company would first confirm the value of the items with one or more independent
antique dealers. You should then be paid a dollar value based on the dealer(s) estimate of the worth of the antique items.
If you disagree with the settlement offered by your insurer, then you can follow the dispute resolution process outlined in
your policy. There is a simpler way. Get appraisals and have your agent establish the stated values in the policy. You should
also keep your appraisals up-to-date.
Source: Massachusetts Department of Insurance
During a storm, a tree from my neighbor's yard fell and destroyed my fence. Does my homeowners
policy pay for the damage or does my neighbor's policy?
Generally, your own policy should cover the loss. Your insurance company may be able
to recover the amount it pays you for the loss and your deductible from the homeowners insurance that your neighbor may have,
in the event that the loss occurred as a result of your neighbor’s negligence.
Source: Massachusetts Department
of Insurance
Recent rainstorms have flooded and damaged my basement, is there any coverage under my homeowners
policy?
Flood coverage is generally excluded on the basic homeowners policy. However, some
homeowners policies provide coverage for backup of sewers and drains that cause flooding in your basement. This coverage can
be purchased for a nominal premium. You should check with your agent to see if this coverage is provided and how much it costs.
If, however, you live in a flood-prone area, you should consider and may be required by your lending institution,
to purchase a flood insurance policy. Your agent should be able to inform you about the Federal Flood Insurance Plan and the
exclusions and limitations of coverage in this policy.
Source: Massachusetts Department of Insurance
The food in my freezer went bad because I lost power in my home. Does my homeowners policy
provide coverage for this?
The basic homeowner policy usually does not. However, this is a popular coverage for
insurance companies to offer and you may be able to buy it for a nominal additional premium. There is also the issue of where
the power was lost. Some policies are limited to coverage for electricity lost in the home or where the electricity enters
the home. Others will limit it to within so many yards from the home. Please call us to find out about the availability of
coverage and how much it would cost.
Source: Massachusetts Department of Insurance
