Massachusetts Homeowners Insurance: Coverage and Insurability

Protecting your property investment with quality MA homeowners insurance is something that is required by the mortgage company, but should also be important to you. If you have never really gone over the details for home insurance in New Bedford, it pays to have an agent who can help you navigate the terminology and determine what is best for your situation. You can start with your local provider of New Bedford car insurance. Borden Insurance provides comprehensive insurance solutions designed to help you protect the things that you value most in life. Stop by and speak with a New Bedford insurance agent about Massachusetts homeowners insurance whether you are just purchasing a new home or if you are interested in upgrading or changing your existing policy.

What to Expect

When you sit down to speak with an agent about MA homeowners insurance, the first thing that will be determined is your insurability. Questions will be asked about your home or about the property that you are buying. Common topics include the age of the home, plumbing, electrical, and roof. Your agent will also likely ask what type of roof you have and will need to know the square footage of the property. The location and address of the home are also important to determine insurability. If home insurance in New Bedford is for a home that you currently own, you will also be asked how long you have owned or lived in the home and whether any claims have been filed in the past five years.

Some reasons why all of this will be important is due to determining factors set by Massachusetts homeowners insurance throughout the state. For example, homes that are in rural areas or that are located in a place where there is no fire hydrant or fire department have a higher risk than those in suburban areas that have hydrants and help readily available. In fact, there are some insurance companies that will not insure these types of properties. Specialty insurance policies may be required, and it could be more difficult to obtain coverage. Your New Bedford insurance agent can help you find the coverage that you need to protect your new home.

What are Deductibles?

All of those insurance commercials make it confusing to know what you need in the way of coverage. One of the most common questions about MA homeowners insurance is regarding the deductible. It is possible to reduce the cost of your premium by having a higher deductible. What this means is that in the event of a claim, you would be responsible for paying cash out of pocket for repairs or replacements before the insurance company starts paying. This is true of both New Bedford car insurance and homeowners insurance policies. In most cases, an insurance company will start providing discounts at around a $500 deductible. Discounts can increase depending on the amount of your deductible.

However, it is important to think about the future. Having a higher deductible means being confident that in the event of an emergency situation that you would have that amount of cash available to begin making repairs to your home. Some companies can give deductibles as high as $10,000, but most mortgage companies restrict deductibles to $1,000 to protect their interests. It is important to check with your lender and work closely with your agent to find the best deductible amount for your Massachusetts homeowners insurance.

How Much Coverage?

This can be a difficult question for the average homeowner to determine without the help of an experienced and qualified New Bedford insurance agent. Many agencies will use a cost estimator to figure out the cost to replace items in the event of a claim. Your coverage is for the home, not the land. A common saying in the insurance industry is that insurance companies don’t insure dirt, so the size of the land does not affect the coverage required for the home. Replacement Cost Coverage is a term used in the industry to provide information for the amount of additional coverage will be provided on top of the insured amount. This figure is designed to protect homeowners who may suffer a loss due to additional construction costs for rebuilding after a total loss.

Inflation, material price increases, and other factors can change how much it would cost to rebuild a home after a covered loss. Most companies suggest coverage that is between 125 and 200 percent Replacement Cost Coverage to prevent a hardship after a loss. Work with your New Bedford insurance agent to create a Massachusetts homeowners insurance policy that will provide you with the coverage you need at a price that you can afford. Additional types of coverage can be built into your policy, and you may be eligible for a discount if you also have your New Bedford car insurance with the same provider. Contact Borden Insurance by calling 508-999-3636 to speak with one of our agents about MA homeowners insurance anywhere in the Southcoast region of Massachusetts.