Your home may be one of your most prized possessions. Is it protected? If you don’t have comprehensive home insurance, one of your most significant assets could be left uncovered. That’s where Obrella comes in. We make sure that shopping for and buying a Massachusetts home insurance policy is as painless as possible. You can connect with experts who simplify the process by explaining all of your options and helping you choose the policy that’s best for you and read detailed information here.
Massachusetts Homeowners Insurance Cost
Although the median value of homes in Massachusetts is significantly more than the national median, the state’s average home insurance premium of $1,150 per year is only slightly more than the U.S. average of$1,034.
- Median Home Value: 334,200
- Household Income: 63,151
- Percent of Income on Home Ownership: 33.70%
At $330,100, the value of the typical house in Massachusetts is nearly twice the national norm of $176,700. Median household incomes are also more in Massachusetts than they are in most states, but the difference is less significant. In Massachusetts, household income is $66,768, or 22% more than the typical American household earns. So, when compared to the national average, Massachusetts homeowners spend slightly more of their income on home ownership costs. Specifically, 33.7% of income is spent on housing related expenses here, whereas the national average is 31.6%. Knowing all this, it’s not surprising that the rate of owner occupied housing is lower in Massachusetts than it is across the nation. In fact, at 61.5%, Massachusetts has the 44th lowest percentage of owner occupied housing.
Owning a home in Massachusetts isn’t cheap, but you might be able to lower your expenses by finding a better priced home insurance policy. To learn if you can save money on your home insurance, call [mapi-phone-link /] to start comparing home insurance quotes in Massachusetts!
Determining Home Insurance Premiums in Massachusetts
How much should you expect to pay for your home insurance policy? When assigning premiums, insurance companies look at things like the age and square footage of a home as well as the crime rates and housing prices of the neighborhood. Even your financial background (i.e. your credit score) can affect your premium.
In setting insurance premiums, providers also survey the chance that your home might be damaged by floods, tornadoes, earthquakes, or other environmental factors. Locations that experience higher-than-average natural disasters are likely to see more expensive insurance premiums, since premiums represent the risk a provider takes on by insuring your property.
Even improvements that add value to your home, such as a guest house or a swimming pool, can result in a higher annual premium. That’s because these extra features represent additional property that a provider must cover to insure your home. Fortunately, installing home and property protection devices like motion-sensor lights, security systems, and surveillance cameras can often result in discounts on homeowners insurance.
Homeowners Insurance in Massachusetts
Many home insurance companies in Massachusetts give you a range of coverage options to choose from; here are a few examples:
- HO-1: Limited Coverage
- An HO-1 policy covers damage to your home that occurs as the result of any of the first 10 classified disasters fire or lightning, windstorms or hail, explosions, riots, damage caused by aircrafts, damage caused by vehicles, smoke, vandalism, theft, and volcanic eruption. However, this type of policy is no longer available for purchase in most states.
- HO-2: Basic Policy
- HO-2 homeowners policies are designed to provide coverage in the event that your home is affected by any of the 16 classified disasters.
- HO-3: Standard, most popular
- This policy is the most popular due to its comprehensive coverage and relatively few exceptions.
- HO-8: Older Home
- To protect against depreciation, this policy will usually reimburse homeowners for damage on an actual cash value basis, though some older homes may not qualify for full replacement cost policies.
What is Covered By Standard Massachusetts Homeowners Insurance?
It’s important to know what your policy covers. Typically, home insurance policies specify certain situations in which the insurance company will reimburse you for damage. This means that your home insurance coverage does not extend to situations outside those explicitly stated in your policy. So for example, if your home sustains damage due to flooding but your policy does not cover flooding, your home insurance will not pay for the damage. Check out the definitions of some of the most common home insurance coverages below:
- Coverage A – Dwelling
- Covers damages to a home and any structures attached to the home. This includes damages to any of the home’s heating system, permanent air conditioning, wiring, or plumbing.
- Coverage B – Other Structures
- Other Structures coverage protects any structures that are not connected to the home. This includes free-standing sheds, fences, guest homes, and detached garages.
- Coverage C – Personal Property
- Personal Property coverage pays back homeowners in the event that a personal possession like clothes, furniture, or electronic equipment is lost or damaged. This coverage is valid whether or not the loss or damage occurs on the property meaning items kept in a storage facility, for example, are still protected.
- Coverage D – Loss of Use
- If home repairs prevent you from inhabiting your house, Loss of Use coverage will cover your living expenses for the duration of the repair process.
- Coverage E – Personal Liability
- Personal Liability coverage provides financial protection in the event of a lawsuit in which the homeowner is found legally liable for another’s injuries or damages.
- Coverage F – Medical Payments to Others
- In the event that someone is hurt on your property or by your pet, this coverage will take care of any resulting medical bills.
Massachusetts Insurance Resources
Massachusetts Division of Insurance: Governs the licensing of local insurance agencies and helps protect consumers’ rights. It also offers detailed information on how to properly prepare for a storm in an effort to minimize your home’s damage and receives consumers’ complaints and concerns.
Shopping for home insurance can be intimidating. There are tons of different options out there, which makes it difficult to decide on the best policy to keep your home protected. Luckily, you have Obrella. Connect with an experienced insurance agent so they can walk you through your options and help you choose the perfect plan. They can even get your policy bound over the phone! So skip the hassles of shopping for home insurance when you use Obrella. It’s quick, easy, and reliable.
To talk to an insurance professional with experience in Massachusetts home insurance policy options, call today at [mapi-phone-link /].
Before making any final decisions on your insurance company, it is important to learn as much as you can about your local insurance providers, and the coverages they offer. Call your local insurance agent to clear up any questions that you might have. Questions to consider asking include, “What is the best coverage plan for me/my family/my situation?” “What are the minimum coverage requirements in my state and what form of coverage do you recommend?” “Do you guys offer any bundle discounts if I take out both my auto insurance and home insurance with you?” and “What is the average rate of insurance quotes you guys offer?” Make sure you are getting an affordable rate that works for you, and ask about the coverage levels offered.
Before making any big insurance decisions, use our free tool to compare insurance quotes near you. It’s simple, just plug in your zip code and we’ll do the rest!