Basics to Know About Homeowners Insurance in Massachusetts

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Whether it’s a new city like Gardner or a small community like the Town of Gosnold, Massachusetts is predominantly a landlord-friendly state. A recent report reveals that Newton, with 72.8%, tops the cities with the highest homeownership.

Massachusetts home prices have gone up by 6.2% over the past year, and the median value stands at $450,000. With an average household income of $80,000, most of the Bay Staters opt for mortgages while purchasing a house. In the case of a home loan, your lender will require you to have homeowner’s insurance.

Basics to Know About Homeowners Insurance in Massachusetts

Even if you don’t have any mortgage, getting affordable homeowners insurance in MA will always be essential to protect you from significant property losses. Here’s what you should know about such insurance schemes to make an informed decision.

What is a Homeowner’s Insurance?

In Massachusetts, property crimes have increased year-on-year, with burglary making up for 17% of all property crimes.

Homeowner’s insurance gives you the protection you need for your house in the event of property damage or loss. The policy covers various scenarios and also offers additional coverage for extra protection.

A homeowner’s insurance agent will guide you through buying this policy, considering your property location, home and financial condition.

Homeowner’s Insurance Coverage

Massachusetts adheres to the HO-3 Home Insurance policy, designed to protect your property from unprecedented disasters.

Massachusetts residents love greenery, and with seven lovely garden walks, they try incorporating the green element in their property landscape, spending over $3,000 on related services. And if there is a theft in your shed where you store your garden tools, a homeowner’s insurance will come to your rescue.

These policies are replacement cost-based, meaning your claim reimbursement depends on the current repair and replacement costs. An agent offering homeowner’s insurance in MA will help you determine the repair and replacement work’s coverage.

Personal Property Damage Coverage

Hail is quite common in Western Massachusetts communities, just west of Springfield. In severe conditions, your possessions like furniture can get damaged.

The excellent news is homeowner’s insurance covers personal property losses from perils like fire and hail, listed in your policy. You will get your settlements on your possessions’ actual cash value at the time of your losses. You can still go for a replacement cost option, which you will receive after the deductible payment.

Additional Protection

Cities like Haverhill are more prone to lightning, which often causes home fires that can quickly blaze out of control. And there are areas like Malden, where natural disasters like tornadoes are quite common, creating roof damages from falling trees. Such perils can force you to reside in someplace outside your home temporarily. Staying at hotels in MA charging you over $100 a night can increase your daily expenses.

But the homeowner’s insurance policy presents loss of use coverage, under which you receive the remunerations for your increased expenses after a covered event. You can also avail liability protection for your family members responsible for injuring others or damaging other’s property.

Optional Insurance for More Coverage

A recent report suggests that Adams, a town in the Berkshires, faces the highest flood risk in Massachusetts. If you live in such areas, you would need protection for your dwelling. Homeowner’s insurance offers protection through optional insurance policies to cover your losses due to flood damages.

On the same lines, homeowner’s insurance agents can help you increase your coverage bracket with optional insurance schemes like personal umbrella and article policies.

Cost of Homeowner’s Insurance

Typically, the homeowner’s insurance in MA will cost you $600 to $1,500 annually, depending on your coverage level.

But Massachusetts is the 38th state with the most expensive homeowner’s insurance, at an average cost of about $1,160.

Amidst the ongoing pandemic, though more than 300,000 MA residents didn’t pay their rents, 80% of landlords seem unaffected and collect all their rent. Compare multiple homeowners insurance quotes and choose the best scheme that offers you adequate coverage to lead a peaceful life in the Bay State.

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