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eda posted an update 10 years, 7 months ago
Homeowners will never really have financial security unless they make certain their home is fully insured. Most people are required by their mortgage lender to have coverage, but even that does not guarantee that the policy they have chosen will cover the full cost of replacement if disaster struck. Many also lack extra coverage for excessive wind damage and flooding.
There are very few things in life more important to a family than the home they share. This fortress against the chaos of the world is usually the largest investment anyone will make and the most loved destination for the people who live there. Protect that investment by being careful when purchasing your mass insurance agents.
Always read your policy in its entirety so you know exactly what is covered. If you have questions, talk to your agent to have the details explained. Know what the market value of your home is, but also be aware of what the cost to replace the home you have would be. This will help you to feel confident that you would be able to rebuild if necessary.
Know your risk of hazards like flooding so you can get any extra coverage that may be needed. If there are additional structures on the property, be certain they are also covered. Check the policy to see how much the contents of the home are covered for and if they are covered for the depreciated amount they would be worth at the point they were stolen or destroyed, or if they are covered for full replacement.
In some instances the homeowners insurance ma residents purchase is paid through an escrow account by the mortgage company. Others will have to pay the insurance company directly. Always be aware when you start a policy who is responsible for covering the premiums to avoid delays or cancellations.
It is also important to realize that an insurance company can cancel your homeowner’s policy if you neglect to pay your premium, if it is discovered you were not truthful in your paperwork or if you damage the property in a way that causes it to lose value. They can also cancel your policy without notice if you are found guilty of behavior that intentionally damaged your property or if you were found to have filed a false claim.
You always have the right to shop around to find lower premiums, even when your insurance is paid through escrow. There are no laws about what insurance companies are allowed to charge, but it is also not legal for a lending company insist you use any specific company to insure your property. Prices matter, but you should always choose a reputable insurance company you trust and feel comfortable trusting with your home.
