What If My House Burns Down And I Don't Want To Rebuild In Massachusetts

Published on June 23rd, 2023

Important things to do after a house fire In Massachusetts:

Find temporary housing

After a house fire, the first thing you need to do is find a safe place to stay. If you have insurance, your policy may cover the cost of a hotel or other temporary housing.

If you don't have insurance, ask your local Red Cross chapter or other disaster relief organizations for help.

Once you have a place to stay, contact your local building department to find out what permits and inspections are required before you can start rebuilding. You will also need to contact your utility companies to have service restored to your home.

Call your insurance agent

Your agent will be able to help you determine what kind of coverage you have and what steps you need to take next.

They may also be able to give you an estimate of how much it will cost to repair or replace your home and possessions. In addition, your agent can help you file an insurance claim and navigate the claims process.

If you don't have homeowners insurance, now is the time to get it. A good policy can help you recover from a fire, flood, or another disaster.

Be sure to document all the damage to your home with photos or video so you can provide evidence to your insurance company.

What to consider when rebuilding your home In Massachusetts?

Additional damage

One of the most important factors is additional damage that may have been inflicted during the disaster. For example, if your home has been flooded, there is a risk of mold and mildew growth. If it has been damaged by a major fire, there is a risk of smoke and fumes.

As a result, it is important to have a qualified inspector assess the damage before you begin the rebuilding process.

Practical living impacts

How will rebuilding your home impact your day-to-day life? If you have young children, for example, you may need to be close to schools and other childcare facilities.

Or if you rely on public transportation, you'll want to make sure that your new home is located in an accessible area.

Costs to consider

When you rebuild your home, there are a lot of costs to consider that you may not have thought of. One cost is property taxes.

Depending on the value of your home, your property taxes could go up substantially. Another cost to consider is the cost of materials.

Depending on the size of your home, you might need to buy more material than you originally thought. The cost of labor is also something to consider.

If you hire a contractor, they will charge you for their time and materials. Finally, the cost of permits is something to think about. You will need to get a permit from your city or county in order to rebuild your home.

All of these costs can add up quickly, so it is important to be prepared before you start rebuilding your home.

Deciding on dwelling coverage In Massachusetts

Replacement Cost Value (RCV)

Replacement cost value reimburses you for the cost of repairs or replacement, up to the policy limits. The main advantage of RCV coverage is that it takes into account the current cost (market value) of materials and labor, so you won't have to worry about being underinsured if prices have gone up since you purchased your policy.

In addition, RCV coverage typically includes protection against inflation, so your dwelling coverage will automatically increase over time to keep pace with the rising cost of repairs.

However, one downside of RCV coverage is that it may be more expensive than other types of dwelling coverage.

As always, be sure to speak with your insurance carrier to determine which type of dwelling coverage is right for you.

Actual Cash Value (ACV)

ACV [1] policies will reimburse you for the cost of repairs minus depreciation, so if your home is destroyed you may not receive enough money to rebuild it from scratch.

However, ACV policies are often cheaper than replacement cost policies, so they may be a good choice if you're on a tight budget.

Ultimately, the decision of whether to choose an ACV or replacement cost policy depends on your individual circumstances and needs.

Will I be able to get my full replacement costs if I buy instead of rebuilding In Massachusetts?

A guaranteed replacement cost policy will cover the full cost of rebuilding your home, no matter how much it may have increased since you originally bought it.

On the other hand, a replacement cost policy will only cover the cost of rebuilding your home up to the amount specified in the policy.

So if building costs have gone up since you purchased your insurance policy, you may have to pay some out-of-pocket expenses. However, both types of policies should cover any debris removal and temporary living expenses that you incur after a disaster.

Key Takeaways

The insurance industry is notoriously slow in settling claims, and it's not uncommon for it to take months or even years to reach a final resolution. In the meantime, you'll likely need to find another place to live.

The good news is that most insurance policies will cover the cost of temporary housing. As for the actual insurance settlement, it will depend on a number of factors, including the extent of the damage and the cause of the fire.

If the fire was caused by negligence on your part, such as leaving candles unattended, your settlement may be reduced or denied altogether. However, if the fire was caused by an external factor, such as faulty wiring, you should be eligible for full coverage.

Ultimately, it's important to work closely with your insurance company to ensure that you receive a fair settlement.