If you’re a first time buyer of a home, then you’re probably not familiar with the ins and outs of Homeowners Insurance in Massachusetts. Homeowners insurance is almost always required by the bank before you can get a loan to buy your home. Various insurance policies will have different rates of coverage and different policies, but most have the same basic features.
- Dwelling coverage, which provides for repair or replacement if your home or attached structures, such as a garage or deck, are damaged
- Personal property coverage, which covers your furniture and personal possessions
- Coverage for other structures, such as sheds or detached garages
- Coverage for loss of use, which is important in situations in which you can no longer live in your house for a period of time
- Personal liability coverage, which covers you in the event someone sues you for injuries sustained on your property
Almost any policy will have these features. Your dwelling coverage will be calculated as a percentage of the value of your home as determined by the insurance company. Other coverage is commonly based off of your dwelling coverage. For example, coverage for free-standing structures is typically limited to 10% of the dwelling coverage, whereas personal property coverage would average around 70% of the dwelling coverage.
Homeowners Insurance in Massachusetts can be a very complex purchase, but it is easy to understand it at a basic level. If you know what you’re paying for, your insurance can turn a potential disaster into a temporary setback.