Here at Vargas and Vargas Insurance Agency, we are always happy to answer questions from our customers. We have been in business for many years, and have answered a lot of questions. One of the questions that we get asked most often is “Why should I insure my home for more than it’s worth?”

While it may seem counterintuitive at first, there are actually several good reasons why your insurance is set at such a high level.

First, consider the purpose of your Massachusetts home insurance policy. You get a home insurance policy so that you are covered – even in the direst situation. If your home was ever deemed a total loss, your home insurance would be there to protect you, and it would cover the cost of rebuilding – assuming you have enough coverage. It’s important to realize that the cost to rebuild your home is rarely the same as its market price – often the rebuilding cost is much higher, and that’s the number you need to consider when choosing a home insurance coverage level.

In addition to covering the cost to rebuild your home in the case of a total loss, your insurance should also include enough coverage to clear out debris and damage before the rebuilding begins. This is a costly process, and it’s certainly not something that you want to pay for out of pocket – so it’s included in your insurance coverage.

And that’s not all – your home insurance also covers all of your belongings. So in addition to paying for the cleanup and rebuilding if there is a total loss, your home insurance will reimburse you for either the replacement cost or actual cash value of your destroyed property.

So remember, you should be insuring your home with the cleanup and rebuilding costs in mind, plus the value of all of the property within. Your insurance provider’s coverage recommendation may be very different than the home’s market value, but that is totally normal – your insurance provider is just making sure that you will be fully covered, even in the worst case scenario. If you aren’t fully covered in the case of a total loss, you could find yourself paying for some of the repairs out of pocket, and that can get very expensive very quickly.

One thing that’s important to consider is that the replacement cost of your home is not a static number. As the price of things like building materials and labor change, so too does your home’s replacement cost. That’s one of the reasons why it’s so important to have a Massachusetts home insurance expert review your policy annually to ensure that it’s up to date.

And if you’re worried about the cost of your home insurance policy, just call Vargas and Vargas Insurance Agency at 617-298-0655 to talk about your premium. We can do a complete review of your current insurance policy and make recommendations on how to lower your insurance costs, including how to get discounts through your current provider, or if another provider may be a better fit for your needs. Remember, we’re an independent insurance agency, so we work for you!

Whether you’re thinking about adding a pool to your existing home or thinking about purchasing a new home with a pool already included, you should know the risks and the rewards of having this feature. While having a pool is a great way to get some exercise, and to cool off in the heat of summer, the simple fact that you have a pool will affect your home insurance, and here’s why:

Safety Requirements

Depending on your local laws, you may be required to have certain safety measures in place for your pool. Check with local zoning officials to find out if you live in an area where safety regulations are necessary. Some insurance providers also require pool owners to have certain safety devices, or offer an insurance premium discount if safety measures are taken.

Safety devices may include, but are not limited to, pool fences with child-proof locking gates, door alarms, water displacement alarms, and safety covers. Tell your insurance agent if you have any of these to find out if you qualify for a discount. And for more great information and tips about pool safety, visit PoolSafely.gov.

Increased Risks

A pool is a great way to cool off and have some fun, but it also represents an increased risk for damage or injury. According to poolsafely.gov, there were 390 deaths of children aged 0-14 from 2011 to 2013. The number of emergency department pool and spa related injuries to children in the same age bracket were nearly 5,000 – at least 47% of which were in a residential setting. Because you are at an increased risk when a pool is present, you need to adjust your insurance coverage accordingly.

To further ensure that you have enough coverage in case someone gets injured on your property, ask your local independent insurance agent about getting an umbrella insurance policy. They are typically inexpensive, but carry coverage that can be indispensable in certain claim situations.

Property Values

It is very important that your home insurance policy accurately reflect the value of your home. As you probably know, having a pool will raise your home’s value, which needs to be accounted for in your policy. And the pool itself is only the beginning. Make sure to evaluate your increase in personal property if you get lawn furniture or any other pool or patio items. Also ask your insurance agent about ensuring that your pool’s equipment is covered. Those pumps and filters can be expensive, so make sure that you’re protected!

If you want to talk to an experienced Massachusetts insurance agent about how much a pool will affect your home insurance rate, just call Vargas and Vargas Insurance Agency at 617-298-0655. We will be able to tell you the estimated cost change and any necessary safety precautions based on your insurance provider. Get balanced coverage at the right price every time with the help of your favorite local insurance provider. And remember – one of the best ways to combat increased risk is with extra insurance protection.