Frequently Asked Questions: Q: WHEN SHOULD I UPDATE MY COVERAGE? A: -A new job, business or retirement     -A change in marital status -A new addition to the family -Improvements to your home. Q: WHAT DOES A HOMEOWNERS POLICY COVER? A: The basic homeowners policy covers your home, garage, shed and/or other structures on your property.  Most coverage varies because there are different policies across the United States. However, the majority of Homeowner policies are based on a standard form. All Homeowners policies should cover two important areas: Property and Liability: -Section I: Property insurance, covers your structures and possessions. -Section II: Personal Liability, you are legally obligated to pay money to another person for actions caused by you, your family, or your property. Q: WHAT KIND OF HOMEOWNERS INSURANCE COVERAGE I SHOULD BUY?   A: Usually, the foundation and land are not covered under the policy and therefore will not figure into an insurance settlement. When determining the replacement cost and different coverage policies of your home, do not use the sale price, the tax assessment or the value the mortgage company calculated. Q: ARE FLOODS, EARTHQUAKES, AND OTHER NATURAL DISASTERS COVERED? A: Most catastrophes are covered. Flood and earthquake damage, however, are not covered by a standard policy, and both “acts of nature” are more common than many people realize. However, you live in a flood-prone area; you may want to consider adding an earthquake endorsement. This endorsement will cover damages due to earthquakes, volcanic eruptions, and other earth movements. Q: WHAT IS THE DIFFERENCE BETWEEN  ACTUAL CASH VALUE & REPLACEMENT COST? A: -Actual Cash Value is the replacement cost of an item, less the amount for depreciation. Often, the owner is entitled to the depreciated value of the damaged property. -Replacement Cost is the amount to repair or replace the damaged property using materials, without deduction for depreciation. Often, the policy owner is reimbursed the amount needed for replacements. Q: IF MY INSURANCE COMPANY NOTIFIED ME THAT THEY WILL NOT RENEW MY POLICY, CAN THIS BE DONE?   A: According to the Massachusetts state law, an insurer is not required to write or renew your policy.  However, if your insurance agency decides not to renew your policy, they must notify you of their decision at least 45 days prior to the policy’s expiration date. Q: IF MY HOME SUSTAINED A WATER LOSS, WHAT WOULD BE COVERED UNDER MY HOMEOWNERS POLICY? A: Usually, damage to both the exterior and interior of a home resulting from weight of ice and snow are covered under a homeowners policy. However, only the area damaged in the loss will be covered. Damage caused by wear and tear and/or neglect will not be covered. Q: IF MY HOME WAS RECENTLY BROKEN INTO AND VALUABLES WERE STOLEN,  HOW CAN I SHOW PROOF WITHOUT A RECEIPT? A: If the actual receipts are not available, insurance companies will usually accept photos, cancelled checks, warranties, credit card receipts, bills and servicing agreements. Q: WHAT CAN I DO TO LOWER THE COST OF MY HOMEOWNERS INSURANCE? A: You may qualify for certain discounts. Many insurers will offer a discount if you insure both your homeowners insurance and automobile insurance with them.  Also, if your home has a security system, and deadbolt exterior locks, this may help reduce your payment. Finally, if you increase you deductible that will lower your premium. Back to top