|
|
| |
| How much Homeowner’s insurance coverage should I buy
for my home? |
| You need to first determine how much it will cost to rebuild your home; minus the foundation
and the land. The “replacement value” or cost to reconstruct your home has nothing to do with market value sales price or your tax assessment.
Construction costs vary greatly due to several factors such as a non-standard home, a home with unique features that include ornate or hand-carved
woodwork, plank floors, stained glass and etc. We can help guide you through the process using our construction cost software programs at no charge. |
 |
| My home was burglarized and what if I can’t
produce receipts for some of the stolen items? |
| If actual sales receipts are not available, insurance companies will generally accept photos,
warranties, owner’s manuals, cancelled checks, credit card receipts, bills, servicing agreements and video tapes as proof of ownership. Be prepared;
proper documentation always helps in the event of a loss. |
|
|
| Do I have earthquake coverage on my homeowner’s
policy? |
| No! Coverage for earthquake, landslide and mudflow damage is excluded entirely for your home,
other structures, household contents and personal possessions. However, an earthquake coverage endorsement is available for an additional premium. |
|
|
| What does replacement coverage on my
home mean? |
| This coverage provides the funds you will need to repair or replace your home at today’s
prices for materials and labor; subject to policy language. |
|
|
| Is my child’s personal belongings covered while they
are away at college? |
| Yes, your homeowner’s policy will cover your child’s belongings while they are
staying in a dormitory only. There is a limit of 10% of your contents coverage available to them in the event of a loss. If they are renting an
apartment off-campus; they should obtain their own renter’s policy. |
|
|
| Do I have Flood Coverage on my homeowner’s policy? |
| No! Flood damage is never covered under a homeowner’s policy. We can offer you a
flood policy through the National Flood Insurance Program for an additional
premium. MORE |
|
|
| Recent rainstorms flooded my basement. Is
there any coverage under my homeowner’s policy? |
| Flood coverage is generally excluded on the basic homeowner’s policy. However,
some policies will provide limited coverage for backup of sewers and drains that cause flooding in your basement. This coverage can be purchased for a
nominal premium. Check with us to see if this coverage is provided and how much it costs. If you live in a flood-prone area, you should consider and
may be required by your lending institution to purchase a flood insurance policy through the National Flood Insurance Plan. |
|
|
| Identity Theft! Are you protected? |
| Identity Fraud expense coverage is available for an additional yearly premium of
approximately $35. Identity Fraud is the fastest growing white-collar crime and this coverage will cover expenses incurred as a direct result of
identity fraud during the policy period. We strongly recommend this coverage! |
|
|
| What is Personal Umbrella liability
coverage? |
| The Personal Umbrella increases the Bodily Injury liability & Property Damage
liability over and above the limits of your underlying (base or primary) coverage which may include your personal auto policy, your homeowner’s
policy, a boat policy or some other similar personal lines policy. |
|
|
| What is the difference between actual cash value and
replacement cost value? |
| Actual Cash Value is the replacement cost of an item, less the amount for
depreciation. Replacement Cost Value is the amount to repair or replace the damaged property using materials of like kind and quality, without
deduction for depreciation. Depreciation is the loss of value that develops as an item ages or wears. |
|
|
| My homeowner’s policy contains coverage for
scheduled items. What happens if there is a claim? |
| Insurance companies generally have the option to replace the item, if possible,
through their vendor of choice. They do this because they can usually replace your item at less cost because of their ongoing business relationship
with a specific vendor. If 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. |
|
|
| 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. |
|
|
| My insurance company did not renew my policy. Where
else could I purchase insurance? |
| If you aren’t successful obtaining a policy with another company or your agent;
you may contact the Massachusetts Property Insurance Underwriting Association (MPIUA), commonly known as the FAIR
Plan. It makes insurance protection available to individuals who are having difficulty getting insurance for their home. They can be reached at
800-392-6108. |
|
|
| My home was damaged due to “ice dams”. What is
covered under my homeowner’s policy? |
| Generally damage to both the exterior and interior of a home resulting from
weight of ice and snow or ice dams will be covered under a homeowner’s 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. |
|
|
| Can my insurance company cancel my homeowner’s
coverage during the policy term? |
| According to Massachusetts General Laws Chapter 175, Section 99 (12), your policy can be cancelled for any
of several reasons: 1) non-payment of premium, 2) material misrepresentation, 3) fraud, 4) conviction of a crime arising out of acts increasing the
hazard insured against, (EG: storage of illegal fireworks) 5) increasing the hazard insured against, (EG: ignoring a gas leak) or 6) physical changes
in the property insured which result in the property becoming uninsurable, such as a vacant building. |
|
|
| I have specifically insured antique items
listed on my homeowner’s 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. It would be much
better to get appraisals and keep them up-to-date. |
|
|
| During a storm, my tree fell into the neighbor’s
yard and destroyed his shed. Am I responsible? |
| It depends! Generally, his policy should cover the loss. In the event that the
loss occurred as a result of your actions (or lack of); his insurance company may try to recover the amount it paid from your company. |
|
|
| Do I have coverage if I lose a piece of jewelry?
|
| No! The standard homeowner’s policy does not cover your property due to
“mysterious disappearance”. Personal property coverage is provided on a
named peril basis and “mysterious disappearance” is not one of the named perils. You may purchase coverage by “scheduling”
your valuable items. If you schedule the valuable property, you will have broader coverage for that property with already established values and the
deductible will not apply. Please call us to discuss scheduling your valuable property. |
|
|
| The food in my freezer went bad because I lost
power in my home. Does my homeowner’s policy provide coverage for this? |
| The basic homeowner policy usually does not cover this type of loss. However,
this is a popular coverage for insurance companies to offer and you may be able to buy it for a nominal additional premium. It also depends on how and
where the power was lost. |
|
|
| Insurers will not offer me coverage because I have a dog
of a particular breed. Can they do this? |
| Yes, while underwriting guidelines vary; most companies avoid the following
breeds: American Bull Dog, New Yorkie, Presa Canario, Rottweiler, Chow, Akita, Doberman Pinscher, Wolf Dog, Staffordshire Pit Bull Terrier, Bull Mastiff or Mastiff, German Shepherd and any mixed
breeds of these types. The list also includes dogs with prior biting history, aggressive in nature or that have been mistreated. Insurers may also
decide to non-renew your policy due to a dog bite incidents. The Massachusetts Property Insurance Underwriting
Association (MPIUA) will offer homeowner insurance to consumers who have been declined coverage. However, they will exclude liability coverage for
claims resulting from any dog with a bite history, but not for specific breeds. More information on obtaining homeowners insurance through the MPIUA
(FAIR Plan) is available by calling 800-392-6108. |
|
|
| What does FAIR Plan stand for? |
| It is an acronym for Fair Access to Insurance Requirements. If you have a
mortgage, hazard insurance will be required to protect their interest. Therefore, it must be available somewhere. Please note that the FAIR Plan also
has underwriting guidelines and a property could also be rejected by the MPIUA. |
|
|
| Are there exclusions I should know about? |
| Yes! Every policy contains conditions of coverage, limitations and
exclusions. |
|
|
| Does my homeowner’s policy cover my personal
computer? |
| Yes! It would be considered part of your contents. However, there are limitations
to this coverage. If it is used in business; coverage is limited to $2,500 for any such contents. There is no coverage to reproduce any data. There
are enhancements that you can add to your policy for an additional charge that will expand this coverage. |
|
|
| I work out of my home. Does my policy cover
business property? |
| Personal property that is used in any way for business is subject to a $2,500
limit while that property is on your residence premises. That limits drops to $250 while away from your residence premises. Also, please note that
personal liability protection in your homeowner’s policy does not extend to business liability. If you operate a business, you need to purchase
appropriate coverage! |
|
|
| What does a homeowner insurance policy
cover? |
| Homeowner’s insurance generally covers damage from incidents such as fire, theft,
windstorm and vandalism to your home, detached structures such as a garage or shed along with your personal belongings. It includes living expenses if
your home becomes temporarily unusable and liability coverage if you or a household member injures another person or damages their property. |
|
|
| Do I have an adequate amount of
dwelling coverage on my policy? |
| You are adequately insured if your policy value is enough to rebuild your home
assuming a total loss. Total coverage should include debris removal, contractor fees and architectural fees. The replacement cost of your home can
vary over time because of inflation, the cost of labor, cost of building materials and renovations you might have made to your home. You should review
your coverage at least every other year to make sure you remain current. We can help guide you through the process using our construction cost
software programs at no charge. |
|
|
| May I change the amount of coverage on my
personal property? |
| Yes! Your personal property coverage limit is usually 50% of your dwelling
coverage amount. This may be increased or decreased as needed based on your personal situation. |
|
|
| Is there any personal property that
would not covered by my policy? |
| Most personal property is covered up to stated limits for
named peril, however, some items such as money, jewelry, watches, furs, silverware, securities, watercraft, trailers,
grave markers and guns will have coverage limitations. Remember, there are deductibles, conditions and
exclusions to every policy. If you aren’t sure
about a specific situation, please give us a call. |
|
|
| How do I insure valuable or special
personal property? |
| You should “schedule” such items. This will provide broader coverage. When you
schedule items like jewelry, silverware, photographic equipment, or antiques; you describe them and set the value. There is an additional premium
charge depending on the type of property and the amount of coverage needed. |
|
|
| Is there a limit on coverage for my
silverware or other valuables? |
| Yes! Typically, the standard policy provides coverage up to $2,500 for silverware
and $1,000 for jewelry for loss by theft. If you need more coverage, you should schedule those items. |
|
|
| What if my pipes burst? |
| Coverage is provided for that damage and for any additional damage done in the
course of repairing the system. Coverage does not include the cost of repairing or replacing the system itself unless the damage was caused by
freezing. Only water damage that is sudden and accidental is covered. |
|
|
| What if my pipes freeze? |
| You are covered for resulting damage to your home and belongings as well as for
damage to the plumbing or heating system. If the damage occurs when your home is vacant, you are covered as long as you have taken the necessary
precautions to keep the building heated or have had the water turned off and the plumbing and heating systems drained. |
|
|
| What coverage do I have for damage from vandalism? |
| You are covered up to your policy’s limits unless your home was vacant for 30 or
more consecutive days preceding the incident. Your policy does not cover loss caused by vandalism and malicious mischief if the dwelling has been
vacant for more than 30 consecutive days immediately before the loss. |
|
|
| If someone is injured on my property,
am I covered? |
| The liability portion of your policy covers an injury to another person if you
are legally liable for their injury. Normally, there is no coverage for injuries you or your household members while on your property. |
|
|
| If my home is damaged, will my insurance cover
living expenses while it is being repaired? |
| If your home is damaged by a covered peril, your policy provides Loss of Use
coverage. It is also referred to as “additional living expense” coverage. It is designed to pay those expenses over and above your normal living
costs. |
|
|
| Am I covered if a windstorm damages trees
in my yard? |
| If the fallen tree damages a covered structure on the property; your policy
covers up to $500 to have the tree removed. While it will also pay for the damage to the structure, there is no coverage provided to replace the cost
of the tree itself that was damaged by windstorm. |
|
|
| Does my policy cover removal of debris
from my property? |
| Yes! Your policy provides for removal of debris from your covered property
resulting from a covered loss. |
|
|
| Can my lender require me to carry more
insurance on my home than it would cost to rebuild it? |
| No! Under Massachusetts General Law, Chapter 183 Section 66, any lender doing business in the
Commonwealth of Massachusetts shall not require as a condition of a mortgage that the mortgagor purchase insurance in excess of the replacement cost
for that structure. A later clarification to this statute further indicated that lenders are not empowered to require that the insurer provide
"Guaranteed Replacement Cost" coverage on the premises. We can help guide you through the process of determining proper replacement cost values using
our construction cost software programs at no charge. |
|
|
| What is Private Mortgage Insurance (PMI)? |
| If your down payment on a home is less than 20 percent of the appraised value or
sale price, you must obtain private mortgage insurance, known as PMI, with your lender. This will enable you to obtain a mortgage with a lower down
payment because your lender is now protected against any default on the loan. |
|
|
| Does the mortgage lender select the type
of homeowner’s policy or is that my responsibility? |
| You own the policy, so the choice is yours to select the insurance that bests
fits your situation. The mortgage company will still require proof of coverage as a condition of the loan. Many lenders will collect an appropriate
amount each month along with the mortgage payment. This money is put into an escrow account and covers your insurance and taxes. |
Do you have a question that we didn't address here?
Contact us for a professional and thorough answer! |
