According to the National Weather Service, In Massachusetts, Hurricane Sandy never turned into a hurricane.

Instead, it was Storm Sandy, so insurance companies apply a policy’s wind deductible vs. a policy’s hurricane deductible.

The difference, in coastal properties’ policies, can be thousands of dollars.

Does your Massachusetts homeowner policy have the Personal Property Replacement Cost Endorsement?

Claims can be settled two different ways: Actual Cash Value basis  (ACV) or Replacement Cost basis.

ACV is based on the replacement cost of the property, minus a deduction for physical depreciation and obsolescence. Your 10 year old recliner might not be worth much when figured this way and the payment from the insurance company might not be enough to buy a new one.

However, if you have the Replacement Cost Endorsement (cost is about 10% of the policy’s premium), the company will pay the cost to replace the property with a similar type and quality of property without a deduction for depreciation.

Having this replacement cost endorsement can be very valuable. However, even policies with Replacement Cost have limits for “special items” such as jewelry, antiques, collectibles, fine arts, and silverware. These items should be “scheduled” on your policy separately.

Ok, settle down. It’s back to school time and MA homeowner insurance class is in session.

Every year you spend a lot of money on your homeowner insurance. Your mortgage company requires that you carry it. Do you understand what your home insurance does and doesn’t do for you?

Here’s a quick review of your MA home insurance policy:

Coverage A, Dwelling – The amount of coverage assigned to your dwelling should reflect the amount it would cost to completely repair or rebuild your home should it suffer a covered loss.

Coverage B, Other Structures – Typically 10% of Coverage A, Other Structures Coverage is for other structures (mailbox, shed, dog house, swimming pool, garage etc.) on your property detached from your dwelling.

Coverage C, Personal Property – Typically 50 – 70% of Coverage A, Personal Property Coverage provides coverage for your personal possessions such as furniture, clothing and appliances are covered. Certain types of possessions, such as jewelry, fine arts, antiques & collectibles, are excluded or have limited coverage.

Coverage D, Loss of Use – Typically 20% of Coverage A, Loss of Use Coverage pays for housing and other living expenses (like meals and laundry) if you suffer a loss that makes your home uninhabitable.

Coverage E, Personal Liability – Personal Liability Coverage provides on & off premise lawsuit protection and will provide coverage for bodily injury or property damage for which you are legally responsible.

Coverage F, Medical Payments – This coverage is available to others (not household residents) and will pay medical expenses up to, traditionally, $1,000.

Covered Perils – A homeowner insurance policy will provide protection from: fire or lightning, windstorm or hail, explosion, aircraft, vehicles, riot or civil commotion, smoke, theft, vandalism/malicious mischief, glass breakage, volcanic eruption, falling objects, weight of ice, snow or sleet, freezing of plumbing, accidental plumbing discharge, rupture of steam or hot water heating system, air conditioning systems, or water heaters, damage from artificially generated electricity.

Exclusions – A homeowners policy excludes coverage from: flood, or water that backs up through sewers, loss to building by earthquake, aftershocks and mud slides, loss by enforcement law or ordinance regulating construction, repair or demolition, or zoning, loss due to power interruption when the interruption takes place off the residence property, loss due to neglect of the insured to save and preserve property following a loss, war and nuclear perils, intentional loss.

Deductibles – Homeowner policy include a deductible. The deductible is the amount the consumer is responsible for before the insurance coverage applies.. Typical deductibles are $500, $1,000, and $2,500. The higher the deductible: the lower the annual premium.

Call or click us at MassQuotes.com to get your free, no obligation, Massachusetts insurance review.

Massachusetts is known for our erratic weather. This is the season when high winds and lightning can combine to wreak havoc in our area, especially if they cause trees to topple and electric lines to fall.

There are just three words to remember if you ever see a power line lying on the ground: Don’t touch it!

If you see a power line on the ground or anywhere else it does not belong, call 911!

To stay safe, follow these safety rules:

Never assume that a downed line is a cable television or telephone wire. Assume every wire is dangerous – it could save your life.

Do not drive over downed power lines.

Do not touch downed power lines or use any object – including brooms, boards, limbs or plastic to move them. Never step in water that is touching a downed wire.

Never touch a person in contact with a power line or an object that’s touching the wires. Do not touch a person who has been shocked by a power line.

Do not try to cut or remove a tree that is entangled with power lines.

If you are involved in an accident that results in a power line touching your car, do not get out of your car unless it is on fire. In case of a fire, jump clear of the car and land on both feet. Warn people to stay away form your car.

Do not approach a car that is touching power lines. Keep the victim in the vehicle and wait for emergency personnel to handle the situation.