Insuring Your Home to Value

Although not required by law in Massachusetts, Homeowners Insurance is required by most mortgage lenders. Typical Homeowners policies in Massachusetts provide coverage for your home, other structures on your property, and the possessions in your home against losses such as from fire, storm damage and theft. These policies also generally protect you and your family members from liability arising from bodily harm to others or property damage to other people’s property.

Since a home is usually your single biggest financial investment, it’s important to make sure you not only have coverage, but you have the right coverage for you. At Cochrane & Porter, we help you avoid the most common home insurance mistake – under insuring the Replacement Cost of your home. The best way to do that is to insure your home to value, and here’s how:

Ask your agent to review.

  • Insurance to value is an insurance concept based on making sure you have enough coverage on your policy to rebuild the home if there is total loss. It differs from the market value of the home and does not include the value of the land. Independent agents like Cochrane & Porter can utilize cost estimators, check prior inspections, review information available through your town’s assessor’s office – and account for inflation and make sure your policy is sufficient. Other information from websites like Zillow or Trulia can also obtain information about your home that help make sure your Replacement Cost is accurate.

Consider requesting an inspection.

  • Some insurance companies will send an inspector if the home has been without inspection for a long time, but if you have made home improvements, built an addition, or made other changes that could affect the value of your home, it may be worth asking your insurance agent to talk to the insurance company about performing an inspection.

If your home is insured to less than 80% of value, then even in a partial loss you will only receive an equivalent percentage of the cost to repair the damages. For example, if the limit on your home is only 70% of the cost to rebuild it, in the event of a partial loss of $100,000 you would only receive $70,000. That’s $30,000 in out-of-pocket expenses. Ouch!

You want your Homeowners insurance to be there for you when you need it, and making sure your home is insured to value is the best way to get that peace of mind. Contact us today and we’ll be happy to help you get the best possible coverage for your home at the best possible price!

Rest Assured. We’ve got you covered!

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