Homeowner insurance policy is a legal contract that binds your insurance company to pay for any losses that you might suffer on your residential property. The policy may also include coverage for your belongings and other items you want to extend it to.
To reap the benefits of your policy, you must familiarize yourself with all the exclusions and coverages of your policy.
In this post, we will answer common questions that homeowners insurance policy owners in Massachusetts may have:
There is no definitive answer to this. The ‘ideal’ insurance coverage amount varies from one homeowner to another. It also depends on the property and belongings you own.
If your home has a lot of unique décor or has been renovated recently, it will fall under the category of non-standard homes. These features may include expensive, hand-carved woodwork or stained-glass doors. Non-standard homes need to be brought to the insurance agent’s attention because a standard homeowner’s insurance policy won’t take these factors into account. You don’t want to find out at the time of a claim that you’re underinsured.
If your policy covers any specific items, the insurance company will replace the item in case of a loss. The insurer will have the liberty to choose a vendor that they’ve been buying from a long time. On the contrary, if you don’t want to get the item replaced, you can ask the insurer to pay you the amount.
In this case, the insurer will pay the same item that they would have spent if they got the item replaced through their own vendor. As far as fine art is concerned, those items are covered according to their scheduled, pre-decided amount.
There are different valuation methods that an insurance company uses to replace any lost belongings.
You should ask your insurer about the valuation method that they use, prior to purchasing the policy.
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