03 Jan What Is Home Insurance?
Your home is one of your most valuable assets. Beyond being a huge financial investment, it’s also a big part of who you are. As a representation of what matters to you, your home is filled with both your physical belongings and cherished memories. So what are you doing to make sure it’s all protected?
At Anderson, Bagley & Mayo Insurance (ABM), we understand that your home in North Central Massachusetts is more than just a building. It’s the place where you’ve set down roots to start or raise a family. We know you’ve worked hard to make such a big investment and to acquire all the belongings you’ve accumulated over the years, which is why we want to make sure you have the proper insurance coverage to protect everyone and everything you love. We know insurance can be a little complicated — to help, we’ve put together some answers to commonly asked questions about home insurance.
What’s the difference between home insurance and homeowners insurance?
In a nutshell — nothing! Often used interchangeably, home insurance and homeowners insurance policies generally provide coverage for the structure of your home and its belongings, along with liability protection for injury or property damage incurred on your property.
What does homeowners insurance cover?
The details and limits of your homeowners insurance policy will depend on your specific situation, but a standard homeowners policy includes the following:
- Coverage for the structure of your home — If your home is damaged or destroyed by a covered loss, like a fire or windstorm, your homeowners insurance policy will help cover the cost to repair or rebuild your home, up to the limits of your policy.
- Coverage for your personal belongings — Loss or damage to your personal belongings, like furniture, clothing, and other personal items, are also covered by your homeowners insurance policy. However, items such as jewelry, antiques or other valuable collectible items may need additional coverage in the form of a scheduled personal property rider. When assessing how much coverage you need, a home inventory can be an excellent way to determine the value of all of your personal property.
- Liability protection — This coverage protects you against lawsuits resulting from injury or property damage that occurs on your property, up to the limits of your policy. Depending on your situation, ABM may recommend investing in additional liability coverage through an Umbrella Policy to safeguard your assets.
- Additional Living Expenses — If you have to relocate after a covered loss while your home is being repaired or rebuilt, this will help cover your bills related to the expenses you incur, like hotel fees or rent for temporary housing.
Are there additional coverages I should consider in addition to a standard homeowners insurance policy?
In short — yes! There are many endorsements that can be added to your homeowners insurance policy that provide extra layers of protection. Here are just a few examples:
- Home systems protection — This added coverage offers protection for mechanical or electrical breakdowns for systems and equipment that generate, transmit or utilize energy such as your furnace, central air conditioning, water heater or electrical panels.
- Service line protection — Did you know that the city or town you live in only covers your service lines up to the street, so anything that breaks down on your property is up to you to fix? Service line protection can cover repair costs for things like your electrical, plumbing, or sewage lines, which are typically not covered under a standard homeowners policy.
- Flood Insurance – If your property is located in a flood zone, like some neighborhoods near the Nashua River, then you will need to invest in Flood Insurance. Water damage due to natural flooding of any kind is not covered under a standard homeowners policy.
- Scheduled personal property — As outlined earlier, this added coverage offers additional protection for your more valuable belongings. This can be helpful for your most precious investments like a diamond ring, fur coat, sports memorabilia, or other valuable collectibles.
How much homeowners insurance do I need?
Figuring out how much coverage you need is exactly why working with an independent insurance agent like ABM can be so beneficial for residents of Leominster, Gardner, Westminster and the surrounding communities. They will assess the replacement value of your home along with your belongings to determine how much insurance you need. You never want to be paying for more insurance than you need, but you also definitely don’t want to have too little insurance, especially if a disaster were to happen.
Here at Anderson, Bagley & Mayo Insurance, we’re more than just insurance agents; we’re your neighbors. We value personal service and will do whatever it takes to make you feel confident in your insurance options. If you have a question about your insurance coverage or are looking for a home insurance quote, feel free to Contact Us and one our knowledgeable team members will be happy to help you out. Insurance isn’t a one-size-fits-all kind of thing, so we’ll do the work necessary to make sure you and your home have the right coverage at the right price.