When choosing an insurance policy, most people are familiar with flat-rate deductibles (e.g., $500 or $1,000). However, some policies use a percentage-based deductible instead. This means your out-of-pocket cost isn’t a fixed amount but a percentage of your coverage limit.
This type of deductible is common in homeowners insurance, especially in areas prone to hurricanes, windstorms, and earthquakes.
How Does It Work? 💡
A percentage-based deductible is calculated using a set percentage of your total coverage limit, not the amount of damage.
For example:
You have a home insurance policy with a coverage limit of $300,000.
Your deductible is 2% of the coverage limit.
If you file a claim, your out-of-pocket cost would be:
$300,000 x 2% = $6,000 deductible
So, if your home has $15,000 in storm damage, you’d pay $6,000, and insurance would cover the remaining $9,000.
Why Do Insurers Use Percentage-Based Deductibles? 🏠💰
Insurance companies use these deductibles to: ✔ Reduce overall claim costs 💵 ✔ Encourage policyholders to maintain their property 🛠️ ✔ Adjust risk in high-risk areas 🌪️
Percentage-based deductibles are most common in:
Hurricane-prone states (e.g., Florida, Texas, Louisiana) 🌊
Tornado-prone areas (e.g., Midwest states) 🌪️
Earthquake coverage (e.g., California) 🌍
Flat Deductible vs. Percentage-Based Deductible: Which Is Better? 🤷
Feature
Flat Deductible
Percentage-Based Deductible
Predictability
✅ Fixed amount
❌ Varies by coverage limit
Out-of-Pocket Cost
✅ Usually lower
❌ Higher for high-value homes
Common in
Auto & standard home policies 🚗🏡
Home, wind, earthquake insurance 🌪️🌍
Required for some risks?
❌ No
✅ Yes, in high-risk areas
👉 If you have a high-value property, a percentage-based deductible could mean a much larger out-of-pocket expense. Always calculate potential costs before choosing a policy.
How to Lower Your Deductible Costs 🛠️
To avoid large unexpected costs, consider:
Choosing a policy with a cap on percentage deductibles 🏠
Setting aside emergency funds 💰
Reviewing your deductible options with your agent 📞
Final Thoughts: Are Percentage-Based Deductibles Right for You? ✅❌
While percentage-based deductibles can lower your premium, they can also mean higher costs after a disaster. Understanding how much you might pay out of pocket can help you make an informed decision.
📌 Need help choosing the right deductible? Contact your insurance provider for a personalized review.
Would you like help reviewing your current policy? Our team at Vargas & Vargas Insurance ia always ready to be of help, you can reach our team at 617-298-0655.
Do you own a rental property and worry about unexpected damages? Not sure whether you need DP-1, DP-2, or DP-3 insurance? In this guide, we’ll break down the three types of dwelling fire insurance, what they cover, and how to choose the best policy for your property. By the end, you’ll know exactly which policy fits your needs and how much it could cost.
What Is a DP-1 Dwelling Fire Insurance Policy?
The DP-1 policy is a basic form of dwelling policy which is a named perils policy. When you file a claim using this policy, it automatically provides you with an actual cash value (ACV) settlement. However, you can opt for a replacement cost value for an additional cost if you wish.
The DP-1 policy covers damages caused due to:
Fire, Lightning, Internal explosions, such as a stove or water heater explosion. You can also include add-ons to increase the coverage of the DP-1 policy. These endorsements include protection from Vandalism and malicious mischief, Extended coverage that includes hail or windstorms, other explosions, Smoke, riot/civil commotion, Volcanic eruptions, Aircraft or vehicles. This extended coverage can provide great peace of mind, especially in regions prone to certain types of natural disasters.
DP-2 Insurance: What It Covers & Why It’s Better Than DP-1
The broad form of named perils insurance (DP-2) settles claims on a replacement cost value and offers more coverage than the basic form. This kind of policy gives the following protection:
Fire Lightning Extended coverage as mentioned in the basic form Vandalism and malicious mischief Weight of ice and snow Glass breakage Burglary damage Falling objects Frozen pipes Accidental discharge or overflow of water or steam Electrical damage Collapse Loss of rent coverage in the event tenants are required to move out while the landlord repairs the home from a covered loss.
This special form offers the most extensive coverage for your residence, protecting it from all types of damage with the exception of those specifically excluded. In contrast to a named perils policy, this open perils policy provides protection for the dwelling itself, whereas personal property is only safeguarded against certain hazards as specified in the policy. Common exclusions in a DP-3 include:
War Laws and ordinances Water damage Neglect Intentional loss Gradual issues like mold, rust, and rot Earthquakes
Dwelling Fire Insurance FAQs: What Landlords Need to Know
❓ Does landlord insurance cover the tenant’s personal property? ✅ No, a landlord insurance policy does not cover tenants’ personal belongings. Tenants must purchase renters insurance to protect their possessions.
❓ How much does a Dwelling Fire Insurance policy cost? ✅ The cost of dwelling fire insurance ranges from $900 to $3,000 per year. Factors include property size, location, deductible, and claims history.
As the owner, you may be able to insure your own belongings that you keep on the property. However, tenants must get their own insurance in order to have coverage for their personal items. Renter’s insurance is designed to provide protection for renters’ possessions.
Does the Dwelling Fire Insurance policy cover damage caused by tenants?
All dwelling fire policies cover tenant damage caused by negligence that results in a fire. Depending on the policy, some additional forms of tenant damage may be covered as well, such as accidental damage not excluded from the policy or covered by renter’s insurance and malicious damage in some cases. Damage due to ordinary use is not included.
Does Dwelling Fire Insurance include coverage for lost rental income?
Under a Dwelling Fire Insurance policy, if an event covered by the policy causes enough damage that the tenants must move out of the residence, you will be reimbursed for lost rental income.
Are landlords allowed to require tenants to have rental insurance?
Yes, the landlord, can require that the tenants carry rental insurance as part of the leasing or renting agreement and require them to provide evidence of having it before agreeing on the lease.
How much does a Dwelling Fire Insurance policy cost?
Once you have an understanding of the different Dwelling Fire Insurance policies, your likely query would be “How much will it cost me?” Well it depends, It depends on,
The limits and deductible you select Property size Property location Exposures Claims history
The cost of dwelling fire coverage can range based on the above factors, but we typically see insurance premiums between $900 – $3,000 range.
Protect Your Rental Property – Get the Right Dwelling Fire Insurance Today
If you own a rental property, it is important to get the right insurance policy. As you are not living on the premises, it is difficult to have an understanding of what could potentially happen there. Therefore, having a policy that provides the right coverage at the right price is essential in order to protect your investment and avoid costly out-of-pocket claims.
Your Local Independent insurance Broker
For more than four decades, Vargas & Vargas Insurance has been providing clients with top-notch service and insurance coverage. Contact our team today at 617-298-0655.
❓What happens to your car insurance rate if you’re involved in an accident—even if it’s your first?
❓And what if you could prevent that accident from raising your premium?
✅In this article, we’ll break down exactly what Accident Forgiveness means, how it works, who qualifies, and whether it’s worth adding to your policy.
👀By the end, you’ll understand how this benefit can protect your premium—and why Vargas & Vargas Insurance is the team to call at 617-298-0655 when you want the right coverage, with no surprises.
🚗 So, What Is Accident Forgiveness?
Accident Forgiveness is a feature some auto insurance providers offer that allows one at-fault accident to be “forgiven”—meaning it won’t cause your rates to increase.
It’s important to know:
It typically applies to your first accident only.
It doesn’t erase the accident—it just keeps it from impacting your premium.
It’s not automatic. You must qualify or purchase it as part of your policy.
📋 Who Qualifies for Accident Forgiveness?
Eligibility depends on your insurance provider, but most companies offer it to:
Drivers with a clean record for a set number of years
Loyal customers with long-term policies
New policyholders as a sign-up incentive
But here’s the catch: If you switch to a new insurance company, your forgiven accident may no longer be forgiven. It could be counted again when your new provider calculates your rate.
💡 Is It Worth Having?
It depends on your driving history and comfort level with risk.
You may want to consider it if:
You’ve never had an accident, but you’re worried about “what ifs”
You drive frequently or in high-traffic areas
You want to avoid unexpected premium increases
It’s usually a low-cost addition to your policy—and the financial protection can be significant after a single incident.
👥 Why Talk to Vargas & Vargas Insurance?
Insurance policies aren’t one-size-fits-all—and the fine print around accident forgiveness is a great example.
At Vargas & Vargas Insurance, we take the time to: ✅ Explain your coverage options clearly ✅ Match you with carriers who offer features like Accident Forgiveness ✅ Help you decide if it’s right for your situation ✅ Review your policy annually so you’re never caught off guard
We’ve been serving Massachusetts families since 1980, and when it comes to protecting you from the unexpected, we’ve got your back.
📞 Ready to Review or Add Accident Forgiveness?
Don’t wait until you’re in an accident to wonder whether you’re protected.
Call Vargas & Vargas Insurance today at 617-298-0655 to set up a quick policy review or quote. We’ll help you understand exactly what’s included—and what your options are to keep your rates low, even if life throws a curveball.
🏁 Conclusion: Peace of Mind Is One Conversation Away
Accidents happen—even to the best drivers. And while you can’t always prevent them, you can protect yourself from the financial fallout.
With Accident Forgiveness, one honest mistake doesn’t have to follow you for years.
Not sure if you already have it? Want to know what it would cost to add? Call 617-298-0655 or connect with the Vargas & Vargas Insurance team today—we’ll help you make the smart move now, so you don’t pay more later. Do you think
Question 1: Why Does My Insurance Company Require Me to List Non-Drivers?
Have you ever been told by your auto insurance provider that you need to list every household member on your policy—even if they don’t drive your car? It might seem unnecessary, especially if those individuals have no intention of using your vehicle. So, why is this a common insurance requirement?
Question 2: What Are the Risks of Not Listing Household Members?
If they’re not driving, does it really matter? You might think skipping their names saves you money, but in reality, it could create unexpected financial risks and coverage issues. Many policyholders only realize the importance of this rule after a claim is denied or their policy is canceled.
Promise: Here’s What You’ll Learn
In this article, we’ll break down:
Why insurers require all household members to be listed
The potential consequences of leaving someone off
How to handle non-drivers in your household without raising your premiums unnecessarily
Preview: Let’s Dive into the Details
By the end of this guide, you’ll understand why listing non-driving household members is a standard industry practice and how to navigate it without overpaying.
Why Do Insurance Companies Require Household Members to Be Listed?
Insurance companies assess risk based on who has access to your vehicle—not just who actively drives it. Even if a household member claims they won’t drive your car, insurers see them as a potential driver because they could use the vehicle in an emergency or at any given moment.
✅ Access Equals Risk: If someone lives in your home, they can easily take your car, whether it’s for a quick trip to the store or an emergency situation. Insurance companies assume this possibility when assessing risk.
✅ Avoiding Undisclosed Drivers: If an unlisted household member gets into an accident while driving your car—even without permission—your insurance provider may refuse to cover the claim.
✅ Household Rating Factors: Insurance rates are based on all potential drivers under one roof. Even if someone doesn’t drive your car today, their presence could impact risk assessments in the future.
✅ Fraud Prevention: Some people intentionally leave higher-risk drivers (such as teenagers or individuals with bad driving records) off their policies to lower premiums. Insurance companies require full disclosure to prevent this type of misrepresentation.
What Happens If You Don’t List a Household Member?
Failing to list all household members—even if they don’t regularly drive—can have serious consequences.
Potential Risks of Omitting a Household Member:
🚨 Claim Denial: If an unlisted resident gets into an accident with your car, your insurance company may refuse to cover the damages.
🚨 Policy Cancellation or Non-Renewal: If your insurer discovers that a household member should have been listed but wasn’t, they could cancel or refuse to renew your policy.
🚨 Higher Premiums Later: If an insurance company finds out you omitted someone, they may reassess your risk profile and charge higher rates in the future.
🚨 Legal or Financial Liability: If an unlisted driver causes a serious accident, you could be personally responsible for damages, medical costs, or lawsuits.
What If a Household Member Truly Never Drives?
Not every household member needs to be a rated driver on your policy. If someone truly never drives and has their own insurance or no license, you may be able to exclude them to avoid unnecessary rate increases.
Options for Non-Driving Household Members:
✔️ Named Driver Exclusion: Some insurance companies allow you to exclude a household member from coverage. This means they won’t be insured under your policy—but if they ever drive your car, you’ll have no coverage if they crash.
✔️ Proof of Other Insurance: If the household member has their own auto insurance, you may be able to provide proof and exclude them from your policy.
✔️ Signed Non-Driver Statement: Some insurers accept a legally binding affidavit stating that a household member does not drive and will not use your vehicle.
💡 Pro Tip: If a non-driving household member gets a driver’s license later, notify your insurance company immediately to avoid complications.
How to Keep Your Premiums Low While Complying with Insurance Rules
If you’re worried that listing all household members will increase your premiums, here are some strategies to reduce your insurance costs while staying compliant:
💰 Shop Around for Competitive Rates – Not all insurance companies have the same rules about listing household members. Compare providers to find one that offers better options.
💰 Ask About Usage-Based Insurance – If most drivers in your household rarely use your car, consider telematics programs that adjust your rate based on actual driving behavior.
💰 Bundle Policies for Discounts – If multiple household members need coverage, bundling auto and home insurance can often lead to significant savings.
💰 Increase Your Deductible – A higher deductible can lower your monthly premium, making it more affordable even if you must list additional household members.
Final Thoughts: Be Transparent to Protect Yourself
While it might feel unnecessary to list non-drivers on your auto insurance policy, doing so protects you from denied claims, coverage gaps, and potential policy cancellations.
✔️ Always disclose household members, even if they don’t drive regularly. ✔️ Work with your insurer to exclude true non-drivers legally if needed. ✔️ Compare policies to find the best coverage at the most affordable rate.
Next Steps: Talk to Your Insurance Provider
If you’re unsure whether a specific household member needs to be listed on your policy, speak with your insurance provider for guidance. Transparency now can save you from costly issues later.
Want a professional review of your current policy? Contact Vargas & Vargas Insurance today at 617-298-0655 for expert advice and a personalized assessment!
Renting a car for a vacation or business trip seems simple enough. But before you decline the rental company’s insurance, it’s crucial to understand if your personal auto policy provides the coverage you need.
The short answer? Yes, but with some limitations. If you have collision and comprehensive coverage on your personal auto policy, that coverage generally extends to rental vehicles. However, there’s a catch—your policy will not cover loss of use fees that the rental company may charge if the car is damaged in an accident.
What’s the “Loss of Use” Fee? 💰
When you return a rental car damaged, the rental company loses money while the car is being repaired. To make up for this, they may charge you a “loss of use” fee. Unfortunately, most personal auto insurance policies do not cover this fee, which could leave you with a hefty bill.
Example: Let’s say you rent a car, and someone rear-ends you. Your auto insurance covers the repairs, but the rental company charges you an extra $40 per day for every day the car is in the shop. That cost?Coming straight out of your pocket.
This is why many insurance agents recommend purchasing the rental company’s coverage. It may add extra cost upfront, but it protects you from hidden expenses later.
💳 Do Credit Cards Cover Rental Car Damage?
Some credit cards offer rental car insurance as a perk—meaning, if you use that card to pay for the rental, it may cover damages. However, not all cards provide the same level of protection.
✔ American Express (AMEX) offers rental car coverage when you pay with their card. Some cards even allow you to purchase Premium Rental Car Protection for a small fee, which covers loss of use and damage. (🔗 Read more here)
✔ Chase Sapphire Preferred offers primary rental car insurance, which means it covers the damage before your personal auto insurance kicks in. (🔗 Chase benefits)
🚘 Should You Buy the Rental Company’s Insurance?
While your personal auto policy may cover a rental car, you need to ask yourself:
✅ Do I have collision and comprehensive coverage? If not, you have zero protection for rental car damage.
💰 Am I comfortable paying out-of-pocket for loss of use fees? If not, rental car coverage is a good idea.
💳 Does my credit card offer rental coverage? Check the details before assuming you’re covered.
Final Thoughts: Play It Safe ⚠️
The best way to avoid unexpected costs is to review your personal auto policy and credit card benefits before renting a car. If there’s any doubt, purchasing the rental company’s coverage could be a smart move.
Want to double-check your coverage? 📞 Reach out to your insurance provider to confirm the details of your policy.
Understanding the basics Are you confused how to get an insurance quote? Not sure what information you need or how to get the best rate? In this guide, we’ll walk you through the process step by step so you can get the right coverage at the right price. Think of it like getting a price estimate for protecting the things that matter most to you. Whether it’s your car, home, or business, or life insurance, knowing how to get an accurate quote can save you time and money.
Gathering Your Information: What You Need to Get an Accurate Insurance Quote Before reaching out to a local insurance broker, you’ll need some basic information handy. According to the Insurance Information Institute, having the right documents ready can help you get the most accurate quote. For your car, this means your driver’s license number and vehicle information. For your home, you’ll need details about your house’s age, size, and safety features.
Types of Insurance Quotes: Finding the Right Coverage for Your Needs Different situations need different types of insurance. Car insurance protects you on the road. Homeowners insurance keeps your house safe from unexpected problems. Business insurance shields your company from risks, while life insurance ensures financial security for your loved ones. The National Association of Insurance Commissioners explains that each type of insurance has its own special rules and requirements.
The quoting process Getting a quote is easier than you might think. First, you share your information with the insurance broker. Then, they look at different factors like your location, history, and what you want to protect. Finally, they create a personalized quote that fits your needs. Some quotes take just minutes, while others might need a day or two.
How Your Insurance Score Affects Your Quote (and How to Improve It) Your insurance score is a key factor in determining your quote. A high score can lower your rates, while a lower score might mean higher premiums. Your score is based on factors like payment history, insurance history, and claim activity. To improve it, make on-time payments and avoid lapses in coverage.
Comparing Insurance Quotes: What to Look for Before Choosing Not all insurance quotes are the same. Some might offer more protection, while others might save you money with different deductible options. Look carefully at what each quote covers. Sometimes paying a little more gets you much better protection. It’s like choosing between a thin jacket and a warm coat – both work, but one might protect you better.
Making your decision After you get your quotes, take time to understand them. Ask questions if something seems confusing. Insurance brokers are there to help explain things in simple terms. Remember, the cheapest quote isn’t always the best choice. Think about what protection you really need.
What happens next Once you choose your insurance, the broker or their representative will help you complete the paperwork. They’ll explain when your insurance starts and how to make payments. They can also tell you what to do if you ever need to use your insurance. And, mot of the time the paperwork can be completed electronically, saving you time.
Time to take action Don’t leave your protection to chance! Get a personalized insurance quote today with Vargas & Vargas Insurance. Call now at 617-298-0655 or visit our quote request form to start securing your future.
If you’ve noticed a spike in your insurance premiums, you’re not alone. Many people are asking, “Why is my car insurance going up?” or “Why did my home insurance increase?” even if they haven’t filed an insurance claim.
Insurance rate hikes can feel frustrating—especially when you haven’t had an accident, filed a claim, or made any major changes. In this article, we’ll break down the top reasons insurance rates are rising and what you can do to help manage your costs.
1. Increased Claims and Payouts Across the Industry
Even if you haven’t filed a claim, your rates can still go up because insurance is a shared risk system. When companies experience a higher number of claims (from accidents, natural disasters, or theft), they adjust rates for everyone to cover those costs.
🔍 Examples of events that lead to higher claims:
Severe weather (hurricanes, wildfires, floods) causing massive home & auto damage
More accidents on the road, leading to increased payouts for auto claims
Rising medical costs, making injury-related claims more expensive
✅ What You Can Do:
If you haven’t had a claim, ask about safe driver discounts or bundling options to offset increases.
Consider raising your deductible to lower your premium.
Here’s the updated section with your requested change:
2. Inflation and Rising Repair Costs
📈 The cost of goods and services has risen significantly in recent years. This affects insurance rates because:
Vehicles are becoming more advanced and costly to repair. With modern cars packed with high-tech features—like sensors, cameras, and automated systems—we’re essentially driving computers. Repairs are more expensive because they require specialized parts and technicians with advanced training.
Home construction and repair costs have surged due to labor shortages and material price hikes.
Medical expenses continue to climb, increasing the cost of liability claims.
💡 Example: If your car’s bumper has built-in sensors for lane detection or parking assistance, a minor fender-bender could now cost thousands of dollars to repair—driving up insurance costs.
✅ What You Can Do:
Ask your broker to shop around for competitive insurance quotes if your renewal rate increases significantly.
Have your broker look into usage-based insurance programs that adjust your rates based on your actual driving habits.
3. More Frequent and Severe Natural Disasters
Climate change has led to more catastrophic weather events, causing billions of dollars in insured losses. Homeowners and auto insurers raise rates to cover these increased risks.
🌪️ Common weather-related claims:
Hail and wind damage
Flooding from hurricanes and heavy storms
Wildfires destroying homes and vehicles
✅ What You Can Do:
Ask your broker about discounts for home upgrades, such as impact-resistant roofing or flood protection.
Consider higher deductibles for natural disaster coverage to keep premiums lower.
4. More Accidents and Risky Driving Behaviors
🚗 Auto insurance rates are climbing because accident rates are increasing. Factors like distracted driving, speeding, and reckless behavior have led to more severe crashes, resulting in larger claim payouts.
🔍 Key statistics:
More people speeding and driving recklessly post-pandemic.
Distracted driving (texting, phone use) is a leading cause of accidents.
Higher traffic congestion in cities means more accidents overall.
✅ What You Can Do:
Sign up for safe driving discounts or telematics programs that track your driving habits.
Take a defensive driving course for potential rate reductions.
5. Fraud and Insurance Scams
Unfortunately, insurance fraud is a major issue that affects everyone. Fraudulent claims, staged accidents, and exaggerated damages force insurance companies to increase rates to offset their losses.
💰 Common types of fraud that drive up rates:
Staged car accidents where fraudsters fake collisions to collect payouts.
Exaggerated claims where policyholders inflate damage costs.
Fake injury claims that increase medical and liability costs.
✅ What You Can Do:
Report suspicious claims to your insurance broker or provider.
Be cautious of “too good to be true” accident claims from third parties.
6. Your Personal Insurance History
Your individual profile plays a big role in determining your rates. If your insurance has increased, it may be due to:
A past claim (even if it was small, it could affect your renewal rate).
A change in credit score (in some states, insurers factor this into pricing).
Your location (moving to a high-risk area can cause an increase).
✅ What You Can Do:
If your credit score improved, ask your insurance broker or provider for a re-evaluation.
Ask your broker to shop around for better rates from different insurance providers.
How to Lower Your Insurance Costs
Even if rates are going up, there are still ways to lower your premiums and make insurance more affordable:
✔️ Bundle your home and auto insurance – Many providers offer discounts for multiple policies. ✔️ Increase your deductible – A higher deductible means lower monthly payments. ✔️ Take advantage of discounts – Ask about good driver, low-mileage, or homeowner discounts. ✔️ Improve your credit score – Some states allow insurers to use credit in pricing. ✔️ Shop around – Your broker is the best way to compare rates from multiple insurance providers to find the best deal for you. ✔️ Use telematics programs – Some insurers offer usage-based pricing for safe drivers.
Final Thoughts: Stay Informed and Proactive
Insurance rates are rising due to economic factors, increased claims, severe weather, and industry-wide risks—but you can take steps to minimize your costs.
✔️ Stay aware of market trends. ✔️ Ask your provider about new discounts and programs. ✔️ Compare insurance providers regularly.
By understanding why your insurance is increasing, you can make informed decisions and find ways to keep your coverage affordable without sacrificing protection.
Have questions about your insurance rates? Contact Vargas & Vargas Insurance at 617-298-0655 for a personalized review and expert advice!
Are you frustrated with outdated HOA or condo rules that no longer make sense? Have you ever had a dispute with a neighbor over unclear regulations?
At Vargas & Vargas Insurance, we’ve helped hundreds of condo associations navigate complex bylaw issues. Whether it’s outdated pet policies or unclear fee structures, keeping your bylaws up to date is critical to a well-run community.
In this guide, we’ll walk you through why bylaws matter, what to check, and how to keep your rules current—so your community stays legally compliant and problem-free.
HOA Bylaws Explained: What They Are and Why They Matter Think of bylaws as your community’s rulebook. They tell everyone – from residents to board members – what they can and can’t do. Just like you update your phone or computer, these rules need regular updates too.
Key HOA Bylaw Updates to Review in 2025:
Meeting Rules: Can people attend meetings online?
Pet Rules: Are the pet policies fair and clear?
Common Area Rules: Do the pool and gym rules make sense?
Money Matters: Are the rules about fees and spending clear?
Board Member Protection: Are board members protected when making decisions?
Dangers of Outdated HOA Bylaws: Legal & Property Risks Having outdated rules can cause big problems:
Confusion about what’s allowed
Arguments between neighbors
Legal troubles
Lower property values
Unhappy residents
Making Updates the Right Way Here’s how to keep your rules current:
Check them every 3-5 years
Talk to a lawyer who knows Massachusetts laws
Ask residents what they think
Keep everyone informed about changes
Make sure everyone can easily find the rules
How Vargas & Vargas Insurance Can Help At Vargas & Vargas Insurance, we know running a condo or HOA isn’t easy. We’re here to help protect your community with the right insurance coverage. When you combine good rules with good insurance, you’re setting up your community for success.
Common Questions:
How often should we update our bylaws? Usually every 3-5 years, or when big changes happen.
Why do bylaws need to follow the law? To avoid fines and legal problems.
Can the board change bylaws alone? Usually not – residents typically need to vote.
What happens if we don’t update our rules? You might face legal problems, unhappy residents, and lower property values.
Ready to Protect Your Community? At Vargas & Vargas Insurance, we help protect HOAs with tailored insurance solutions. Contact us today at 617-298-0655 or visit www.vargasinsurance.com to learn how we can support your community.
Old rules can cause legal headaches, arguments, and even lower property values.
Contact us today at www.vargasinsurance.com or call 617-298-0655 to learn more about our condo and HOA insurance solutions.
Buying a home is exciting, but before you can move in, there’s one important step: home insurance. Many buyers ask, “Do I need insurance before closing?” The answer is yes—and here’s why.
Why Do You Need Home Insurance Before Closing?
If you’re getting a mortgage, your lender requires home insurance before they approve your loan. This protects their investment—and yours—if something happens to the home. Even if you’re buying with cash, having insurance is still a smart move to avoid major financial risks.
When Should You Buy Home Insurance?
The best time to start shopping for home insurance is after signing the Purchase and Sale (P&S) agreement and scheduling your home inspection.
Why? ✔️ You’ll have time to compare policies and prices. ✔️ The home inspection might reveal issues that impact coverage. ✔️ Your lender needs proof of insurance before closing.
Waiting until the last minute can lead to rushed decisions or delays in closing.
How Much Does Home Insurance Cost?
Home insurance costs depend on factors like location, home size, and coverage limits. On average:
🏡 National average: $1,000 – $2,500 per year 📍 Low-risk areas: Around $800 – $1,200 per year ⚠️ High-risk areas (floods, hurricanes, wildfires): $2,500+ per year
Your premium will also depend on your deductible, the home’s age, and safety features. The best way to find the right price? Compare quotes from multiple insurers.
What Should Your Policy Cover?
Not all policies are the same. Make sure yours includes:
Full replacement cost – Covers rebuilding your home if it’s destroyed.
Personal property coverage – Protects your furniture, electronics, and belongings.
Liability protection – Covers accidents or injuries on your property.
Temporary housing coverage – Pays for a place to stay if your home is unlivable.
Extra protection – Floods, earthquakes, and some disasters require additional coverage.
How to Save on Home Insurance
Want the best rate? Try these tips:
✅ Bundle policies – Combine home and auto insurance for discounts. ✅ Raise your deductible – A higher deductible means lower monthly payments. ✅ Improve security – Alarms and safety features can lower your premium. ✅ Shop around – Compare quotes to find the best deal.
Final Thoughts
Home insurance isn’t just required—it’s essential. Protect your investment and your future by getting coverage early in the home-buying process.
Need help finding the right policy? The team at Vargas & Vargas can be reached at 617-298-0655.
Is your home really protected from all risks? Many homeowners believe standard insurance covers everything—until disaster strikes.
At Vargas & Vargas Insurance, we’ve helped thousands of homeowners avoid costly gaps in coverage. From unexpected water damage to building code updates, the right add-ons can save you from financial stress.
In this guide, we’ll explore six must-have home insurance coverages, how they protect you, and how to ensure you’re fully covered.
Extended & Guaranteed Replacement Cost Insurance: Protecting Your Home from Rising Costs Imagine this: A big storm damages many homes in your area. Suddenly, building materials become really expensive because everyone needs them at once. Extended replacement cost coverage helps pay these extra costs, even if they’re more than your regular insurance limit.
There are two types:
Extended replacement cost: Gives you 25%, 50%, or 100% extra coverage
Guaranteed replacement cost: Covers all extra costs, no matter how high
Think of it like having an emergency fund for your home. We usually suggest getting 100% extended coverage to make sure you’re fully protected.
Personal Injury Protection for Homeowners: Coverage You Might Be Missing Did you know you could be sued for something you post on social media? Personal injury coverage protects you if someone sues you for:
Saying or writing something that hurts their reputation
Wrongly making someone leave your property
Entering someone’s property without permission
The good news? This important protection usually costs only about $10 per year!
Water Backup Insurance: Protect Your Home from Costly Damage Water problems can be sneaky and expensive. This coverage helps if:
Your sewer backs up
Drains overflow
Your sump pump stops working
This isn’t the same as flood insurance, but it’s just as important. Water backup problems happen more often than you might think, and fixing them can be really expensive.
Service Line Coverage: Underground Protection Think about all the important lines running under your yard:
Water pipes
Power lines
Internet cables
Gas lines
If these break, fixing them means digging up your yard – which can cost $5,000-$10,000! Service line coverage helps pay for:
Finding the problem
Digging up the lines
Fixing or replacing broken lines
Fixing your yard afterward
For about $50 a year, you can get $10,000-$20,000 of protection. That’s a great deal for peace of mind!
This coverage helps fix or replace these things if they break down after their warranty expires. Think of it as an extended warranty for everything important in your home!
Ordinance or Law Coverage: Keeping Up with Building Codes Building codes change all the time to make homes safer. If you need to repair your home after damage, you might have to:
Update electrical wiring
Install better plumbing
Make things handicap accessible
Meet new safety standards
This coverage helps pay for these required updates, which regular insurance might not cover.
For more detailed information about home insurance protections, visit the Insurance Information Institute’s homeowners guide, click here or check out the Consumer Financial Protection Bureau’s resources, click here.
At Vargas & Vargas Insurance, we make insurance simple and affordable. Call 617-298-0655 or visit www.vargasinsurance.com to speak with our experts today.
Explain these coverages in simple terms
Help you choose what’s right for your home
Find ways to save you money
Be there when you need to make a claim
Making Smart Choices When deciding on coverage:
Think about your home’s unique features
Consider your budget
Plan for the unexpected
Ask about bundling discounts
Review your policy yearly
Which coverages you need
How much protection is right for you
Ways to save money
What your policy covers
Choosing the right home insurance coverages ensures you’re financially protected from unexpected risks.
Contact Vargas & Vargas Insurance today, and let’s make sure your home is fully protected with the right coverage at the right price.
