cancellation of a binder by insured and minimum earned premium

If an insurer decides to accept your application, the producer or company may issue you an insurance binder, which is a legally binding statement that you have immediate protection for a specified period of time while the company decides whether or not to issue you a policy. You should be aware, however, that under Massachusetts law, an insurance company cannot consider “your race, color, religious creed, national origin, sex, age, ancestry, sexual orientation, children, marital status, veteran status, the receipt of public assistance or disability” when deciding whether to provide, renew or cancel home insurance.Īfter reviewing the information, the insurance company will use its own standards, known as underwriting guidelines, to decide whether to give you a policy, and the rate it would charge for any coverage it would provide. Like with auto insurance, you can shop around for coverage from companies available in your area and an insurance company can decide to turn down your application for coverage.

Homeowners insurance is offered in a competitive market. any prior property or liability losses.

the distance from the nearest fire department and fire hydrant.

The insurance company typically collects information about your home before issuing any coverage. To give you an accurate quote, the producer or company will usually ask for the following: Should you need or want to purchase homeowners insurance, you will contact an insurance company or an insurance producer (sometimes also known as a broker or agent) to obtain coverage. The lender/bank cannot require you to obtain the coverage from any particular insurer and cannot require you to insure your home for more than the replacement cost of the dwelling. If you drop coverage or stop paying for it, some mortgage agreements permit the lender to take action against you to recover the amount that they did loan you. If you need a mortgage to help pay for your home, your lender or bank may require you to buy and maintain insurance on your home. There is no law requiring that purchase insurance on your home, but it is strongly encouraged that you consider this coverage to protect your investment in your home.

Cancellation of a binder by insured and minimum earned premium