Do you have the right home coverage? MABA MassachusettsRealEstate FirstTimeHomeBuyers MaBuyerAgent

When disaster strikes whether it’s a fire, flood, or a rogue tree limb crashing through the roof your homeowner’s insurance is supposed to be your financial safety net. But not all coverage is created equal, and many homeowners don’t realize their policies are lacking until it’s too late. From coverage limits to fine-print exclusions, the details matter more than you think. If you haven’t taken a hard look at your home insurance policy lately, now’s the time. Here are six key considerations to help you figure out if you really have the right home coverage.

Know What Your Policy Actually Covers

Most standard homeowners insurance policies cover the basics: your home’s structure, personal belongings, liability protection, and additional living expenses if you’re temporarily displaced. But “standard” doesn’t mean comprehensive. Damage from floods, earthquakes, and even certain types of water leaks often requires separate policies or endorsements. If you’re assuming you’re covered for every disaster, it’s time to check the fine print.

Understand Replacement Cost vs. Actual Cash Value

If your policy covers your home or belongings based on actual cash value (ACV), you might be in for an unpleasant surprise after a loss. ACV deducts depreciation, meaning you’ll get far less than what it costs to replace items today. A replacement cost policy, on the other hand, covers the full cost of replacing damaged items with new ones. It may cost more in premiums, but the extra protection can make a world of difference in a real-life claim.

Check Your Coverage Limits

It’s not enough just to have insurance—you need enough of it. Construction costs fluctuate, and what was adequate coverage five years ago might fall short now. Make sure your dwelling coverage reflects current rebuilding costs, not just the purchase price of your home. Also, don’t forget about personal property limits. High-value items like jewelry, art, or electronics may need additional riders or endorsements to be fully protected.

Evaluate Liability Protection

Home insurance isn’t just about protecting your property; it also shields you from financial ruin if someone gets hurt on your premises. Liability coverage can help cover legal costs, medical bills, and damages if you’re found responsible for an accident. If you have a pool, a dog, or frequently host guests, you may want to consider increasing your liability limits—or even adding an umbrella policy for extra peace of mind.

Don’t Forget About Deductibles

Your deductible is the amount you pay out of pocket before insurance kicks in. A higher deductible usually means lower premiums, but it also means more expense if you file a claim. Make sure your deductible aligns with what you could realistically afford in an emergency. Also, be aware that some policies have separate deductibles for specific perils, like windstorms or hurricanes, which can catch homeowners off guard.

Reassess Regularly

Life changes, and so should your insurance. Renovations, new purchases, changes in local risks, or even lifestyle shifts can all affect your insurance needs. Don’t treat your policy as a “set it and forget it” document. Review your coverage annually and after any major life event to make sure your protection keeps pace with your circumstances. The right coverage today might not be the right coverage tomorrow.

FIRST TIME HOMEBUYERS