In Massachusetts, when buying a home, the buyer must review possible insurance policies to protect their investment. They are required to purchase homeowner’s insurance according to the terms of their mortgage loan product. They must fulfill this requirements before the closing is scheduled. Homeowners Insurance Agents in Southborough MA helps new buyers manage these requirements.
What Value is Acquired When a Total Loss Occurs?
Insurance policies offer either the true replacement or market value. The true replacement value is defined by a licensed contractor. They evaluate the property and provide an estimate for rebuilding the property.
The market value is based on an assessment of the current market. It is assigned according to the recent selling price for similar properties in the same neighborhood. An appraisal is performed to identify this value.
What Coverage Level is Provided for Personal Belongings?
Personal belongings are included into one category. This includes common items such as clothing, shoes, and jewelry. Small electronics are also placed into this category. If the policy doesn’t present a fair value, the agent adjusts it. For more expensive items, the homeowner needs a rider for that specific item to protect it fully.
How Much is Needed for Temporary Living Expenses?
The value of the temporary living expenses is adjustable. The policyholder chooses a value based on the most recent statistics for local natural disasters. The policyholder should calculate related expenses for each member of their household.
Does the Policy Provide Coverage for a Power Outage?
A standard homeowner’s policy provides coverage for losses due to a power outage. They apply to lost groceries that were stored in the freezer and refrigerator. The claim’s adjuster assigns a value based on the average cost of these items. The funds help the homeowner to replace the damaged foods.
In Massachusetts, buyers must acquire homeowner’s insurance for their new property. The mortgage loan contract defines the least amount of coverage required. However, if the home is in a designated flood zone, they must purchase flood insurance in addition to this coverage. Home buyers who have questions about coverage should contact homeowners insurance agents in Southborough MA.