Massachusetts Home Insurance rates have been going in one direction: up. The easiest way to save money on your home insurance is to package it with your auto insurance.
The first step for home insurance is figuring out the appropriate amount of coverage. Your Coverage A, Dwelling, amount should represent the “Replacement Cost” of your home. This should be the amount that it would take to rebuild your home if you were to suffer a catastophic loss. The “Replacement Cost” or Dwelling Amount should not be confused with the home’s Market Value.
Once you have the “Dwelling Amount,” the next three parts (B, C, & D) are usually percentages of this coverage amount.
For example:
Coverage A, Dwelling, amount: $800,000
Coverage B, Other Structures (10% of Coverage A amount): $80,000
Coverage C, Personal Property (70% of Coverage A w/Replacment) $560,000
Coverage D, Loss of Use (20% of Coverage A amount): $160,000
Home insurance also provides you Liability Coverage (Parts E & F).
Part E, Personal Liability Coverage, protects you from on and off-premises liability claims against you & family members. We recommend limits of $500,000 per occurrence and we recommend you consider Personal Liability Umbrella Coverage that sits over these and your auto limits.
Part F, Medical Payments Coverage, is typically in the amount of $1,000 or $5,000. If provides Medical Payments coverage for anyone (except household members) injured on your property.
For savings, we recommend you compare deductibles from: $500, $1,000, $2,500, $5,000 & even $10,000 deductibles.
A Central Station Fire & Burglar Alarm System can also save you money.