A home is usually the largest purchase most Massachusetts residents will make in their lifetime. Homeowners insurance exists to protect this investment. Is a contract between a homeowner and insurance company. The insurance company guarantees to reimburse the owner for any losses incurred due to natural disasters, human caused damage, or other accidents. The basic insurance policy protects the owner against damage that results from things such as fire, wind, and lightning. Typically, a policy will not cover flood damage. The reason for this is that floods are often specific to certain regions. Generally, flood coverage is purchased as a separate policy. Often times, mortgage companies will require a flood policy. In addition to covering against accident losses, basic policies will also cover theft and liability. In addition to being a good common sense move, purchasing homeowners insurance is required by almost all mortgage companies. For more information, you can refer to the Massachusetts consumer's guide to homeowners insurance. |