Personal Lines FAQs

Q1. What does a standard homeowner policy cover?

A. The standard homeowner policy is divided into two major sections: property coverage and liability. The property covered includes your house and attached structures - such as your garage, your personal property and detached structures - such as a shed located on the premises. Your policy also provides coverage for additional living expenses if your house is damaged and not habitable. Liability coverage provides legal defense and payment if you or a member of your household is held liable for injuring someone or damaging someone's property.

Q2. How much homeowners insurance is enough?

The amount of insurance needed is based on what it would cost to currently rebuild your home. Do not use the sales price, the tax assessment or the amount of the mortgage. Remember that the foundation and the land are not covered under the policy and therefore will not figure into an insurance settlement. We can help you come up with an estimated replacement cost.

You should also evaluate your personal belongings and any special high value items. There are options for specially covering these items.

The limit you should have for liability coverage is based on your personal assets, life style, and what, if any excess liability (Umbrella) policy you might have in force. We will discuss this with you to assist you in determining a reasonable limit.

Q3. Do I have coverage if I lose a piece of jewelry?

No, the standard homeowner, condo and tenant policies do not cover personal property for losses due to "mysterious disappearance." Personal property coverage is provided on a named perils basis, and mysterious disappearance is not one of the named perils. You can purchase a special policy for high value items, such as jewelry, fine arts, and antiques, which provides broader coverage.

Q4. I rent out my basement. Are my tenants covered by my homeowner policy?

The personal property and liability of your tenants is not covered. Your personal property within the basement may be subject to a $2,500 limit. You may want to require your tenants to purchase a tenants policy that will provide them with coverage for their personal property and liability exposure. Please contact us if you rent or lease your property to ensure that you have the proper coverage.

Q5. I work out of my home. Does my policy cover business property?

Yes, but on a very limited coverage basis. Personal property that is used in any way for business is subject to a $2,500 limit while the property is on the residence premises, and a $250 limit while off the premises. Also, please note that personal liability protection in your homeowner policy does not extend to business liability. Please contact us to ensure that you have proper coverage.

Q6. Do I need to carry additional insurance if I have a nanny or au pair?

If you have an au pair or regular household help, you may need Workers' Compensation insurance. Employees are not covered by a Homeowner's policy.

Q7. What is an Umbrella Policy?

An Umbrella Policy provides liability coverage that protects you over and above the limits provided by your other liability polices i.e.: auto and homeowners. Limits start at $1,000,000 and can be increased.

Q8. Do I have flood coverage under my homeowners policy?

No, flood damage is never covered under a homeowners policy. It is necessary to purchase a Flood Insurance policy to obtain coverage.

AUTOMOBILE FAQs

Q1. I only drive on the island, am I eligible for a low mileage discount?

You are eligible for a 5% discount if you drive less than 7500 miles a year. If you drive less than 5000 miles a year, you are eligible for a 10% discount.

Q2. I want to take my car off the road. How do I cancel the insurance?

You need to take the plates off the car and return them to the registry. We can go to the registry for you if you would like. The registry will give you two copies of the plate return receipt. If you go to the registry yourself, just return one copy to our office and we will cancel the insurance.

Q3. One of my children just got their drivers license. How soon should I notify you?

You must notify us within 60 days if a household member, who will operate your auto, becomes a licensed operator. We will also talk with you to determine if they should have their own insurance policy.

Q4. I was in an accident and was found at fault, but I don¹t agree that it was my fault. How do I go about appealing the surcharge?

You will receive a surcharge notice in the mail. If you wish to appeal, follow the instructions on the back of the notice. The Board of Appeal, located at the Division of Insurance, will hold the hearing and will notify you; the Merit Rating Board; and your insurance company of its decision. If surcharge points are applied to your premium for an "at fault" accident while your appeal is pending, you must pay the additional premium or your policy will be cancelled. Should the Board of Appeals find that you were not more than 50% at fault, the Merit Rating Board will remove the incident from your driving history record, and you company will adjust your policy accordingly.

Q5. Am I covered by my existing insurance when I rent a car or should I purchase the additional damage waiver that the rental car company recommends? What if I borrow someone's car in the US, Canada and US Possessions?

If you are a named insured on a Massachusetts auto policy, then the coverage that you have for your vehicle travels with you when you rent or borrow a car. So, if you have collision and comprehensive coverage on your car and then are involved in an accident with a rental car, then your policy would respond as if it were your car. Your liability limits will also travel with you. This only applies to the named insured (owners) listed at the top of the policy, not all drivers listed. Additionally, any auto insurance that the lender of the car has, for that vehicle, will also follow it, regardless of the operator. This applies to occasional usage only. Someone who has access to your vehicle on a regular basis should be added to your policy.

Also please note that any "loss of income" charges that a rental contract may make you responsible for, are not covered. We recommend you talk with us before renting a car.

In addition, coverage under the Massachusetts Auto Policy is only provided on an "Actual Cash Value" basis. You may be responsible for the difference in the ACV of the rental car and the Replacement Cost of a new car. Please contact us to discuss this further.

Q6. Am I covered when I rent or borrow a truck?

Your policy does not provide coverage for a rented or borrowed truck. If you are renting a truck, you should check with the rental company regarding the purchase of insurance. If you are borrowing a truck, make sure you determine whether or not the owner has purchased collision or comprehensive coverage. If the owner does not have insurance, you may be personally liable for any damage to that truck which is the result of your negligent operation.

Q7. If my car breaks down will I be covered if I have "Towing" on my policy?

This coverage pays up to $50 for towing and labor charges each time your car breaks down whether or not there is an accident involved. You may purchase coverage up to $100 per disablement for an additional cost.