What is Homeowners Insurance?
Homeowners in Massachusetts have invested a lot in the houses they own. For many homeowners, their most valuable asset is their house. Most homeowners can ill-afford to lose their house, which is why there’s homeowners insurance.
Homeowners insurance is specifically designed to give homeowners the insurance coverages they need. Most policies help protect homeowners’ houses, belongings and families.
Who in Massachusetts Should Have Home Insurance?
Most homeowners in Massachusetts can benefit from having home insurance, for few people can afford to rebuild their house if it’s destroyed. Without insurance, homeowners could lose all that they’ve invested in their house.
In addition to being a good idea, home insurance may be a requirement for some homeowners. Many lenders include terms in the mortgages they provide that oblige homeowners to carry minimum amounts of insurance so the lender’s financial investment is protected.
What Coverages Do Homeowners Policies Provide?
While homeowners generally need protection for their houses, not all homeowners have the same insurance needs. To accommodate homeowners’ varying needs, insurers offer a variety of insurance coverages. Some coverages that are frequently available include:
- Dwelling Coverage, which may cover a house itself
- Personal Property Coverage, which may cover belongings kept on an insured property
- Personal Liability Coverage, which may cover certain types of liability lawsuits
- Secondary Structures Coverage, which may cover fences, sheds and other non-primary structures
- Loss of Use Coverage, which may cover the cost of finding alternative accommodations if a home is rendered uninhabitable
- Vacant Property Coverage, which may cover a home if it’s vacant for an extended amount of time
In addition to these, there are many other coverages that insurers might offer. Homeowners can explore all of their coverage options by asking an independent agent what protections are available to them.
Does Home Insurance Include Coverage for Floods and Earthquakes?
Most homeowners policies don’t include coverage for floods and earthquakes as either a standard or optional protection. Homeowners who are concerned about these risks typically have to purchase coverage through a peril-specific policy.
Depending on where a homeowner lives, flood insurance may be purchased through the National Flood Insurance Program or the private marketplace. Earthquake insurance is normally obtained through the private marketplace.
What Kinds of Homeowners Policies Are Available?
Just as insurers offer an array of coverage options, they also provide several different kinds of homeowners policies. Within the industry, each type of home insurance is assigned its own abbreviation. Some of the different kinds of policies offered include:
- HO-1 basic policies, which typically offer coverage for 10 specifically named perils
- HO-2 broad form policies, which typically offer coverage for a longer list of named perils
- HO-3 special form policies, which typically are open-perils policies that offer still broader coverage
- HO-5 comprehensive form policies, which typically are open-perils policies that offer even more coverage yet
- HO-7 mobile home form policies, which typically are designed for mobile homes
- HO-8 older home form policies, which typically are designed for old houses
(HO-4 policies are usually for renters, and HO-6 policies are usually for condo owners.)
How Can Massachusetts Homeowners Get Homeowners Insurance?
Because houses are such significant assets, finding the right insurance policy for them is of the utmost importance. For help finding a policy that’ll give their home robust coverage, homeowners in Massachusetts should contact a homeowners insurance specialist from Flavin and Flavin Insurance. A knowledgeable agent will be able to make informed coverage recommendations. Being independent, they’ll have the freedom to recommend any insurer’s policy.