A First-Time Homeowner’s Guide to Home Insurance

Congratulations! After months of researching and attending open houses, you’ve reached homeownership! With all of the hard work you’ve gone through, you should be sure that your investment is protected. One of the most important things to consider as a homeowner is home insurance. Our Senné Associates offer assistance and support as you continue to make decisions about your housing. To help, we’ve compiled some information to help get you started as you shop around for a suitable home insurance quote.

Is home insurance required?

In Massachusetts, home insurance is not legally required but is always highly recommended. In fact, it’s usually the case that a lender may require you to get insurance on your home as a condition of your mortgage. If you’re in a coastal area that’s prone to flooding or hurricanes, FEMA may require you to take out flood insurance if your mortgage is from a federally regulated or insured lender.

What does homeowners insurance cover?

While there is an element to customization with your home insurance, virtually all insurance plans cover destruction and damage to a home’s interior and exterior, the loss or theft of possessions, and personal liability.

Personal liability claims should protect you if someone gets injured on your property. For example, if a guest at your home slips and falls on your patio, or trips over a loose stone in the walkway, your homeowner’s policy will shield you from potential lawsuits.

What should I look for in home insurance?

Each insurance policy will look different. Depending on the condition of your home, its location, and the possessions on the property, you may choose a few policy riders that offer you customized coverage. For instance, scheduled personal property is supplemental insurance for high-value items not covered by the amount of money that your home is insured for; you can opt for specific coverage to cover these.

Homeowners need to consider the different levels of coverage available to them when choosing their insurance plan. The first level of coverage is the actual cash value, which covers the cost of your home and your belongings after deducting depreciation. The second is replacement cost, which covers the cost of your home and possessions without the depreciation deduction. The most comprehensive level of coverage is guaranteed/extended replacement cost, which covers whatever it costs to repair or rebuild your home, even if it’s more than your policy limit. This level of coverage can protect you from underestimating the value of your home and from rising construction costs.

Our residential experts will provide you with guidance and advice at every step of the home purchase process and beyond. For more information, contact us at senneresidential.com or by phone at 617.314.9400 to get connected with a Senné Associate today.