Boston area homeowners insurance on your home can be complex. Because homeowners’ needs vary, so do coverages in a home insurance policy. You should take the time to read your policy. Know what’s covered and what’s not.
Boston Area Homeowners Insurance: What You Should Know
Most people assume they’re covered by most catastrophic events like fires or tornadoes. But what about a flood? That’s a catastrophe, right? Yes, but you’re probably not covered unless you have a separate flood insurance policy.
It’s estimated nearly 32 million U.S. homes don’t have appropriate homeowners insurance. Some have too much coverage, some not enough. Others don’t have the proper type of coverage. That’s where reading your policy comes in. You should review it at least once a year when it’s time to renew. Let’s look at a few helpful tips.
How much coverage should you have? Your home’s protection can be summed up in three areas: the structure, its contents and your liability.
This type of coverage is the cost to replace or rebuild your home if it was declared a total loss as a result of a covered catastrophe. Boston area homeowners insurance adjustors factor in the current cost of materials when assessing a loss. You should have an idea, too, in the unlikely – but possible – event of a total loss.
Coverage limits for your home’s contents are usually calculated between 50-70% of your home’s value. Again, if you suffer a loss of your contents due to a covered peril, your policy will pay to repair or replace them. Figuring the amount of coverage is a little tricky. Many high-value items carry a cap limit of $1,000-$2,500. What that means is that if you had a rare painting that was destroyed it may not be completely covered without some sort of additional rider or specific policy.
Insurance experts suggest the best way to make sure you have the right amount of coverage is to make a home inventory list. Itemize your possessions and write an estimated value next to each one. Review the list with your insurance agent and get his opinion as to the best steps to take. You may elect to add what’s known as a “floater policy” to cover your more expensive belongings.
If an accident occurs on your property injuring another person, you could be held liable for their medical bills. The best way to ensure that you have sufficient liability coverage is to discuss it with your agent. Be totally open and honest. For example, if you own a dog, tell your agent. If your dog bites a guest – and such incidents account for roughly a third of all home insurance claims – and your insurance company wasn’t aware you owned a dog, they may deny the claim, placing the full responsibility on you.
There are several types of additional coverages you can add to your Boston area homeowners insurance policy. They can cover detached buildings on your property, additional living expenses such as meals or hotel stays if you have to leave your house as a result of a covered peril.
When you review your insurance policy is up to you, but we recommend the sooner the better. Call your insurance agent today and ask questions, He can assist you in making sure you have the right coverages, the right amount of coverage and if you need to make any additions to your policy. The time is worth the added peace of mind — and financial protection.
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