New England Homeowners Insurance Agency for Extended Coverage
Did you know that your homeowner’s insurance policy may not provide you with the full value of your home in the event of a claim? Additionally, if you lose some items to theft, flood, or hailstorm, those individual items may not be fully replaceable. Homeowners coverage by default is the cash value of the items lost. It would be difficult to replace many items if you only receive cash value calculated based on depreciation. The amount you receive could be significantly less than the actual cost of replacing your property.
Massachusetts Agents Provide Replacement Coverage Policies
At our independent insurance agencies, Gallant Insurance and our partners at L. F. Robbins, our homeowner’s specialists help Massachusetts residents obtain replacement coverage on their homes and contents. We will review town assessment and tax records or personally visit the property to determine the value of the structure and contents. This allows us to determine the full replacement cost. Most homeowner’s policies already have this feature, so you just need to activate it.
However, if there would be benefit in assessing your homeowners insurance, our experienced agents will review your policy and present you with cost-effective insurance options that will allow you to protect your home fully, compensating for depreciation. We will also explain the costs and benefits of obtaining extended and guaranteed replacement coverage.
Extended Replacement
Many homeowners policies today include full replacement cost, rather than cash value, for a home’s contents and the structure. However, depending on the type and value of the items, even full replacement coverage might not be enough. That’s where extended replacement value comes in. Having extended replacement on your homeowner’s policy provides you protection against inflation. This coverage typically covers between 110 percent and 150 percent of home’s value, depending on the options you choose.
Guaranteed Replacement
Guaranteed replacement coverage is another variation in extended homeowners insurance. This type of coverage protects you in the event of rapid increases in home prices in your area and does not have a cap on the amount that the insurance company must pay. For example, if you purchased homeowners insurance that had guaranteed replacement coverage, the insurance company would have to pay full value as of the day before the covered event. Not surprisingly, this can be expensive coverage, and not all insurers offer it. However, it could be worth it in certain situations.
Contact Gallant Insurance for a Free Quote
If you want the peace of mind that comes with knowing your home is fully protected, talk to us about your insurance options. Contact an agent in Acton or at our partner agency, L. F. Robbins, in Pepperell or Townsend.
We have been serving the New England area’s cities and towns since 1957. Let us put our experience to work in crafting personalized policies to best fit your needs.