Best Homeowners Insurance Agencies in Lowell

Frequently Asked Questions

• Introduction

  Homeowners' insurance is a type of property insurance used by private property owners to protect their home and property from a range of risks and liabilities. It is also called home insurance.
  

  
  

  All homeowners' insurance policies cover the primary home on a property, meaning that most damage from weather, accidents, vandalism, and other events will be at least partially paid for by the insurance company. Many policies also include coverage for other structures, personal property, and some premises liability.

  
  

  It is not required by law that a homeowner purchases insurance for their property. However, if you have a mortgage, the lender will usually make purchasing a homeowners' policy a mandatory part of the loan process. Since the mortgage lender is essentially selling you the home, they require you to protect the investment.
  

• What is the difference between actual cash value and replacement cost when it comes to home insurance in Lowell?

  Actual cash value in Lowell homeowners insurance plans refers to how much it would cost to replace an item minus the amount for depreciation or the loss of value as an item ages or wears. Replacement cost, on the other hand, refers to the amount required to repair or replace the damaged property using materials of similar kind and quality without taking into account depreciation.

• Can a Lowell home insurance company cancel coverage during the policy term?

  According to Massachusetts law, which Lowell follows, a homeowners insurance agency can cancel coverage even during the policy's term if the policyholder commits fraud or is convicted of a crime related to an act that increases hazards on the insured property. Another valid reason for policy cancellation is if the policyholder has failed to pay the premiums or has made physical changes to the home that have rendered it uninsurable.

• What property damage would not covered by home insurance in Lowell?

  Most Lowell home insurance agencies or companies do not provide coverage for property damage caused by floods and earthquakes. Home insurance policies frequently exclude damage to one's home caused by wars, normal wear and tear, intentional damage, and nuclear accidents. However, it all comes down to the specifics of one's plan, so homeowners should discuss these in depth with their insurer.

• What factors determine the cost of homeowners insurance in Lowell?

  The location of the house, such as the region or ZIP code, is one factor. It also matters if the property is in a state with a high risk of weather disturbances or a high crime rate. Coastal properties and homes near the woods typically require more insurance. Another consideration is the building materials used. Concrete block homes, for example, are less expensive to insure than houses with wooden frames because the former is less likely to catch fire. Finally, homeowners who have had multiple previous losses are more likely to pay a higher home insurance rate.

• What should one do if they cannot find a home insurance plan for their property in Lowell?

  If a Lowell homeowner cannot find the right insurance agency or policy for their needs, the Massachusetts Property Insurance Underwriting Association can help. This is a residual insurance market association that provides homeowners with basic coverage on eligible properties. It is also known as the Massachusetts Fair Access to Insurance Requirements (FAIR) Plan. The Massachusetts Division of Insurance receives and approves applications.

• What determines the price of homeowners insurance premium?

  The premium, or monthly cost, of your homeowners' insurance policy depends on several factors, including the value of your home and amount of coverage you choose. Your credit history and whether the property is in a higher risk area also play a role.