Recently I have come across several questions regarding insurance and master insurane policies regarding townhouses in the Boston Neighborhoods. As a real Estate agent, many times we get asked legal questions, mortgage questions and insurance questions. At the end of the day, we aren’t pro’s in these areas, nor are we licenced, so it’s best we connect ourselves with people who can create the whole package. Since i get these questions often, It sparked an idea to ask Brownstone Insurance to write up a guest blog. I contacted them and Glenn Montgomery the co–founder of Brownstone Insurance was nice enough to write up an entry for www.buyrentsellboston.com

By Glenn Montgomery

Insuring your Boston Townhouse

Boston is a beautiful, historic and exciting place to live. With the multitudes of stately brownstone buildings and other beautiful pieces of architecture that have been lovingly transformed into townhouses, it’s important to make sure you have adequate insurance that can protect your investment in the property as well as personal belongings.

If you are buying a townhouse, brownstone, or triple decker inBoston, you have two options: a homeowners’ policy or a commercial insurance policy. The homeowners’ policy is designed to cover owner-occupied residences that contain up to four units. Most carriers will prefer to insure one and two-family homes. For buildings with two or more units, you can insure them with a commercial package policy. In the end, you will end up with much of the same coverage, just with different terminology.

Basic coverages to look for include:

• Building replacement cost coverage
• Personal property coverage- Your personal property is not attached to the building, therefore it is not covered by your building’s master insurance policy.
• Out building coverage- This covers structures such as sheds and garages.
• Loss of rental coverage- This coverage will provide rent reimbursement after a loss.
• Liability coverage- This is coverage for lawsuits against you.
• Crime coverage- Protection against theft is important.

Not everybody understands the unique nature of the replacement cost of an urban townhouse. Insurance company replacement programs are not enough. The value of the true replacement of the structure could far exceed what you paid, or what the mortgage company or the insurance company require. Be sure to know what it costs to rebuild your townhouse.

Shop around and ask lots of questions. Find a company or agent that understands your needs and the unique nature of your property.

Glenn can be reached at Glenn@brownstoneinsurance.com