Do you own an income property?
Dwelling fire policy endorsements make your coverage much more well-rounded. These policies differ from homeowner’s policies in a few ways. The coverage is not as comprehensive as your homeowner’s because you don’t live in that property, so technically you have less to protect in the eyes of the insurer. Anyone who owns an income property knows that isn’t necessarily true, because if anything were to happen, that’s money out of their pocket. We’ve seen many dwelling fire policies that come to us with bare bones and not nearly enough coverage for our client should anything happen.
As you cannot get replacement cost on your dwelling fire policy, you need to make sure the limit you’re being rated at is as accurate as possible and not too low. Otherwise, you’ll get a partial payment on partial coverage, exposing you to a major loss of income.
Are You Covered?
Lead paint exclusion
Don’t be on the hook for lead paint. If your policy doesn’t properly cover it, you could be on the hook should someone sue you for lead paint poisoning. Check out the MA Lead Paint Law here.
When you own an income property, an umbrella is key. It can help you in case your dwelling policy exceeds its limit. Your umbrella drops down to cover you when your primary policy is maxed out. In the case of potential multi-million dollar lawsuits, you’ll be happy to spend the extra $10-15 per month.
Ordinance or Law
The state of MA as well as the rest of New England is known for its rich history and beautiful homes. Often, these homes were built prior to 1975 and require updates to meet the current mandates of towns and cities. Ordinance or law coverage prevents you from paying out of pocket for any major changes to your home as a result of a change in the town’s ordinance or law that you have no choice but to update. This coverage can easily save you 5-figures should that day arise.
Flood policies are only required by lenders in certain high-risk zones of MA and New England, however, if they are not required, they are affordable and completely worth it. Especially areas such as downtown Peabody, MA, that is historically known for flooding and have many apartments, flood insurance gives the extra coverage your dwelling fire policy lacks. Unless it is a result of a fire, water damage is barely covered by any homeowner policy or dwelling fire policy. For about $500/year, a flood policy gives you that cushion for one of the most popular claim types.