E A Stevens Company Inc

389 Main Street
Malden, MA 02148

Phone: 781-322-2324

152C South Main Street
Middleton, MA 01949

Phone: 978-774-6126

How Much Home Insurance is Enough

The cost to rebuild your home is its replacement value. This can be very different from the estimated market value or actual purchase price. In most cases, it costs more to rebuild the home you own than to buy a new one. This is an important insight into why your Dwelling (Coverage A) limit is so important.

How much home insurance is right for you?

Our team understands the home insurance needs of our customers. We’ll work with you to estimate the replacement cost for your home and to adjust your policy limits from time to time as needed.

It is critical that you provide us with accurate, updated information about your home and contents. If your dwelling limit accurately reflects your home’s true replacement cost, some companies will pay more than the limit if a covered loss is greater than the limit on your policy. Ask us if Guaranteed Replacement Cost or Extended Dwelling Coverage is available.

Once a review of your home and possessions indicates you are properly insured, it’s a good idea to reexamine your coverages and limits from time to time, especially whenever you make additions or improvements.

Be Sure You Have Enough Insurance

Here are some steps you can take to reduce the danger of being seriously underinsured:

Call us. If you have questions or concerns about the limits in your policy, ask us to show you how those amounts were calculated. This will also give you an opportunity to make us aware of any overlooked information.

Read your policy. Certain property, such as jewelry, and certain perils, such as earthquake or flood, is better insured separately. Knowing what is covered and for how much will help you insure properly. If there is anything in your policy you don’t understand, contact us and ask for an explanation.

Review. At each annual renewal of your policy, you receive a new Policy Declarations page showing limits of coverage and optional coverages. Review this information. If you do any significant remodeling or add a family room, extra bedroom or bathroom, etc., tell us about these changes so your coverage limits can be adjusted to cover the improvement.

Consider carefully whether your policy provides all the protection you need. Does it provide coverage for extra costs resulting from building code changes? Does it automatically increase coverage limits annually to keep pace with inflation? Does it provide additional funds if the cost of rebuilding your home exceeds the policy limits?

Make sure you know:

If you have an art collection, antique furniture, jewelry, or other valuable possessions, talk to us about supplemental coverages, such as fine arts or scheduled property endorsements, to adequately protect your investment in these items. The cost is modest for the extra protection, and often the deductible is waived.

Consider whether you should have more coverage for personal property (contents) than your policy provides. Personal property coverage is usually 50% of the coverage limit for the structure. Supplemental protection is available for a small additional premium if you need a higher limit. Many of our companies are offering up to 70% of the dwelling limit as part of their preferred programs.

Inventory your home. Prepare an inventory of personal property items, update it periodically, and keep it in a safe place outside your home, such as a safe deposit box at your bank. It will save you hours of time trying to list everything damaged or destroyed if you need to make a claim. It will also help ensure you don’t forget some items. We can advise you on ways to simplify the job of preparing a personal property inventory such as videotaping each room with descriptive information on the sound track.

Personal Liability

Besides making sure you have enough protection to cover possible damage to your own home and contents, you should also evaluate your exposure to liability risks. These result from damage to the property of another, or injury to a person, not a member of your household, for which you can be responsible. In recent years it’s become common for homeowners to be sued for injuries or damages to others, even when there is no evidence of negligence by the homeowner. The reality today is if you have any appreciable assets, you are exposed to the risk of being sued. Even if you ultimately prevail in court, your legal fees and the months or years of worry and uncertainty can be a terrible burden on you and your family.

The Personal Liability coverage provided by your Homeowners Policy usually provides a limit of $100,000 or $300,000. We recommend increasing this protection to at least $500,000 and purchasing a personal umbrella policy. Not only will the umbrella increase your personal liability, but also your auto liability. Limits are available from $1 million to $10 million and beyond. The cost of this coverage is usually very reasonable.

Keep in mind that Massachusetts can require certain minimum levels of coverage. The right coverage for you is unique – talk to us today to find out how to get the best price and value on home insurance for you.

Get a Quote

Get a quick comparative quote using our online form or call us at 781-322-2324.

Get a Quote Online Call 781-322-2324

Featured Carriers

We’re proud to feature several fine insurance companies, including Safeco, Andover Companies, The Hartford, Encompass, Travelers, CNA, Central Mutual, Acadia, Safety, Philadelphia, Chartis, Peerless, Quincy Mutual, Zurich, Foremost and many more!