Hard Lessons from California Fires: What Homeowners Are Learning About Their Home Insurance

Name: Vargas & Vargas Insurance
Address: 1133 Washington St, Dorchester, MA, 02124
Telephone: 617-298-0655

Posted on January 21, 2025February 6, 2025 by cvargas

Wildfires are devastating California communities, leaving thousands of homeowners struggling to rebuild. Many are facing an even bigger shock—learning too late that their insurance doesn’t cover the full cost of rebuilding.

At Vargas & Vargas Insurance, we’ve helped homeowners avoid financial disaster by making sure their coverage keeps up with rising costs, home improvements, and new building regulations.

In this article, we’ll break down the costly lessons wildfire survivors are learning and show you exactly how to protect yourself before it’s too late.

Outdated Coverage: A Common Problem

A homeowner from Paradise thought she had enough insurance. She’d bought her home for $300,000 in 2010 and kept the almost the same coverage all of these years to save money. Over the years, she:

Added a new kitchen ($45,000)
Built a deck ($15,000)
Updated all bathrooms ($30,000)

When her home burned down, she learned her policy would only pay the dwelling amount. “I never knew I needed to tell my insurance company about improvements,” the homeowner says. “Now I’m short $90,000 for rebuilding.”

The Hidden Gap: Construction Costs vs. Insurance Coverage

Another family from Santa Rosa faces a different problem. His insurance covered his home’s value, but he didn’t account for:

Rising construction costs (up 30% since 2020)
Labor shortages driving up prices
Material costs increasing due to demand
Inflation affecting building supplies

A home insured for $400,000 but requiring $580,000 to rebuild leaves the owner with a $180,000 shortfall.

Building Code Surprises: Understanding Ordinance or Law Coverage

Another story reveals another coverage gap. Their 1980s home burned down, and now they are learning about something called “ordinance or law coverage.” This special insurance helps pay for upgrades required by new building codes.

Here’s what it covers:

Demolition costs if undamaged parts must meet new codes
Required upgrades like:

Modern electrical systems
Fire sprinklers
Solar panels (now required on new California homes)
Enhanced insulation
Fire-resistant materials

Insurance Gaps Many Are Finding

California homeowners are discovering several common problems:

Extended Replacement Cost Missing

Basic policies may not cover rebuilding if costs exceed limits
Many lack the 25-50% extra coverage buffer needed

Coverage Didn’t Keep Pace

Home improvements never reported
Property value increases not reflected
Construction cost changes not considered

No Temporary Housing Coverage

Some policies have inadequate living expense coverage
Rebuilding takes longer than expected
Temporary housing costs exceed policy limits

The Cost of Being Underinsured

Another family from Santa Rosa shows what adequate coverage means:

With Full Coverage:

Home properly valued at current building costs
Extended replacement cost adds 50% if needed
Ordinance or law coverage handles code updates
Adequate temporary housing coverage
Total premium: About $1,800 yearly

Without Full Coverage:

Basic policy with original purchase value
No extended replacement cost
No ordinance or law coverage
Limited temporary housing funds
Total premium: About $1,200 yearly

The $600 difference in premiums could prevent $200,000+ in out-of-pocket costs.

Protect Yourself: Essential Steps

Many California homeowners are learning painful lessons about their insurance coverage—after disaster strikes.

Without proper coverage, you could be left with hundreds of thousands in out-of-pocket costs, struggling to rebuild.

Your best move? Schedule a policy review today to ensure your coverage is up to date and fully protects your home.

At Vargas & Vargas Insurance, we specialize in helping homeowners avoid financial disaster by ensuring they have the right coverage. Contact us today for a free consultation, we can help you with:

Update coverage for home improvements
Add extended replacement cost coverage
Include ordinance or law protection
Review temporary housing limits
Ensure proper landscaping coverage

Why Act Now?

Another homeowner from Paradise shares: “I kept meaning to review my policy. After the fire, I learned I was underinsured by $250,000. That yearly review would have cost nothing but saved me everything.”

Trusted Resources

Learn more about proper coverage at:

Insurance Information Institute: [www.iii.org/article/homeowners-insurance-basics]

Complete coverage guidelines
Cost calculators
Policy review checklists

National Association of Insurance Commissioners: [www.naic.org/consumer_home.htm]

State requirements
Consumer protection information
Insurance comparison tools

Take Action Today

Schedule your free policy review with Vargas & Vargas Insurance
Document all home improvements
Check your building code upgrade coverage
Review temporary housing limits
Update landscaping coverage

Don’t wait for disaster to learn these lessons. A small investment in proper coverage now can save hundreds of thousands later. Contact Vargas & Vargas Insurance at 617-298-0655 today to protect your home and family’s future.

Remember: You can’t change your coverage after a disaster strikes. The time to review your policy is now.

Why Every Renter Needs Insurance: A Simple Guide to Protecting Your Stuff

Posted on January 12, 2025February 6, 2025 by cvargas

Are you renting an apartment or house? You might think your landlord’s insurance protects your belongings, but that’s not true! Your landlord’s policy only covers the building itself. This means all your personal items – from your laptop to your favorite chair – aren’t protected unless you have renters insurance.

WHY YOU NEED RENTERS INSURANCE

Think about everything you own for a minute. Your clothes, furniture, electronics, and other belongings probably cost more than you realize. According to the Insurance Information Institute (https://www.iii.org/article/facts-about-renters-insurance), the average renter owns about $30,000 worth of personal property. That’s a lot to lose if something bad happens!

WHAT RENTERS INSURANCE COVERS

Your renters insurance works like a safety net. Here’s what it protects:

YOUR STUFF
If there’s a fire, theft, or water damage from broken pipes, your insurance helps replace your damaged items. This includes things like:

Your favorite comfy couch
The TV you saved up to buy
All your clothes and shoes
Your computer and phone
Kitchen items and appliances

ACCIDENTS INVOLVING OTHERS
According to the National Safety Council (https://www.nsc.org/community-safety/safety-topics/home-and-recreational-safety), accidents can happen anywhere, even in your home. If someone gets hurt in your apartment, renters insurance helps pay their medical bills. It also helps if you accidentally damage someone else’s property.

TEMPORARY HOUSING
What happens if you can’t live in your apartment because of a fire or other covered problem? Renters insurance pays for your hotel stays and extra expenses until you can move back home.

SURPRISING THINGS THAT ARE COVERED

Did you know renters insurance can help in unexpected ways? It covers your stuff even when it’s not in your home! If someone steals your laptop from your car or your bike from outside a store, you’re protected.

WHAT’S NOT COVERED

It’s important to know what renters insurance doesn’t cover:

Flood damage (you need separate flood insurance)
Earthquake damage (you can add this coverage)
Your roommate’s belongings (they need their own policy)
Really expensive jewelry or collectibles (unless you get extra coverage)

HOW TO GET THE RIGHT COVERAGE

Getting the right amount of coverage is easier than you might think:

Make a list of your stuff and take pictures
Add up how much it would cost to replace everything (or you can just estimate what you have)
Think about any special items you might need extra coverage for
Ask about discounts – you might save money if you have car insurance too!

HOW MUCH IT COSTS

Here’s the really good news: in Massachusetts, renters insurance costs about $125 per year for $10,000 of coverage. That’s only about $10 per month! Even better – if you bundle your renters insurance with your auto policy, the cost becomes practically free. Think about it: for less than the cost of a pizza each month (or virtually nothing with bundling), you can protect thousands of dollars worth of your belongings.

PROTECT YOURSELF TODAY

Don’t wait for something bad to happen before getting renters insurance. It’s better to be protected now than sorry later. Our team at Vargas & Vargas Insurance understands that every renter’s situation is different. We’ll help you find the perfect coverage for your needs and budget.

Ready to protect your belongings? Call Vargas & Vargas Insurance at 617-298-0655 today. Our friendly team will answer all your questions and help you get the coverage you need. Don’t risk losing everything – get protected now!

Essential Home Insurance Coverages You Must Know

Posted on December 15, 2024December 10, 2024 by cvargas

Your home is more than just a building – it’s where your life happens. At Vargas & Vargas Insurance, we see how proper coverage protects families when disaster strikes. According to the Insurance Information Institute, homeowners file an insurance claim on average every 10 years, with typical claims exceeding $13,000.

Dwelling Coverage: Protecting Your Home’s Structure
Think of dwelling coverage as your home’s armor, protecting everything from foundation to roof. Whether it’s storm damage or fire, this coverage helps rebuild your home. The National Association of Insurance Commissioners reports dwelling claims account for over 60% of all homeowners insurance payouts.

Personal Property: Safeguarding Your Belongings
This coverage protects your furniture, electronics, clothing, and other possessions from damage or theft. Pro tip: Video record each room of your house – most homeowners underestimate their belongings’ total value.

Liability Coverage

Legal Protection If someone gets injured on your property or your dog bites a neighbor, liability coverage helps with legal fees and medical bills. We recommend minimum $500,000 coverage – lawsuits add up quickly.

Consider an Umbrella Policy for Extra Protection While $500,000 in liability coverage seems substantial, a serious injury lawsuit can exceed this limit. An umbrella policy adds an extra $1-5 million in coverage for a relatively low cost (typically $200-400 annually). Think of it as a safety net protecting your savings, retirement accounts, and future earnings from major lawsuits involving dog bites, pool accidents, or severe injuries on your property.

Loss of Use: Temporary Housing Support
When disasters make your home uninhabitable, this coverage pays for temporary housing and extra living expenses, from hotel stays to restaurant meals.

Medical Payments: Quick Injury Coverage
This covers immediate medical costs for minor guest injuries, regardless of fault, preventing potential liability claims.

Water Backup Coverage: Essential Protection Against Drain and Sewer Problems
Standard policies don’t cover sewer backups or failed sump pumps. This crucial coverage protects against:

Backed up sewers or drains
Overflowing sump pumps
Failed ejector pumps

Without this coverage, you pay out of pocket for:

Water damage cleanup
Replacing damaged belongings
Mold remediation
Electrical repairs
New flooring or drywall

Equipment Breakdown: Modern Home Protection
Today’s homes rely on complex systems. This coverage helps repair or replace failed mechanical and electrical equipment, from HVAC systems to smart home technology.

Identity Theft Coverage: Digital Security
With identity theft rising, this add-on coverage helps restore your identity and credit if compromised.

Contact Vargas & Vargas Insurance at [phone number] to review your coverage. Every home needs unique protection – we’ll help find the right balance of comprehensive coverage and affordable rates.

Remember: The best insurance isn’t the cheapest – it’s the one that fully protects your home when disaster strikes.

Why Insurance Companies Demand Home Inspections

Posted on December 1, 2024December 10, 2024 by cvargas

Imagine you just purchased into your dream house. You’ve moved in and started picking out cool colors for the walls and arranged your furniture just how you like it. Maybe you’ve even planted a tree in the backyard! But there’s one more important thing to do – a home insurance inspection. Don’t worry, it’s not as scary as it sounds!

What’s a Home Insurance Inspection?

A home insurance inspection is like a check-up for your house. It’s when sometimes someone comes to look at your home to make sure everything is safe and working well. This isn’t the same as the inspection you had when you bought the house. This one is special for insurance underwriting purposes.

Why Do Another Inspection?

You might be wondering, “Why do we need another inspection?” Well, there are a few good reasons:

It helps the insurance company understand your house better. They want to know what they’re insuring!
It can find problems you didn’t know about. Maybe there’s a loose wire or a weak spot on the roof. Finding these early can save you a lot of trouble later.
It might even save you money! If your house is in great shape, you might qualify for a better tier policy and pay less for insurance.

What Happens During the Inspection?

The inspection is pretty quick. Usually, it only takes less than an hour. Here’s what happens:

The insurance company or the inspector will reach out to you to set up an appointment
An inspector will come to your house at a time that works for you.
They’ll walk around inside and outside your house.
They’ll look at things like your roof, electrical stuff, and plumbing.
They’ll check for anything that might not be safe.
If you have a multi-family home, heads up! They’ll need to access all apartments.

Don’t worry – they’re not trying to find every little thing wrong with your house. They just want to make sure it’s safe and matches what the insurance company thinks they’re insuring.

What Are They Looking For?

The inspector checks a bunch of different things. Here are some of the main ones:

The Roof: They want to know how old it is and if it’s in good shape.
Electrical Stuff: They make sure all the wires and things are safe.
Plumbing: They check that the pipes are working well and not leaking.
Safety Things: Like smoke detectors, handrails and good lighting.
Possible Dangers: Like tree branches that might fall on your house.

What Happens After the Inspection?

After the inspection, you may receive a report. This report will tell you:

The condition of your home
If there are any problems they found
What you can do to fix any issues

Sometimes, the insurance company might ask you to fix something before they insure your house. But don’t worry they will give you ample time and this is done to help keep you and your home safe!

Why This is Actually Pretty Cool

Even though an inspection might sound boring or scary, it’s actually helpful. It’s like having an expert come check out your house to make sure it’s super safe. Plus, it can help you learn more about your home and how to take care of it.

Remember, this inspection isn’t about finding every little thing wrong with your house. It’s about making sure your home is safe and protected. And that’s pretty important when you think about it!

Need Help? We’ve Got You Covered!

If your home gets inspected and you have questions, don’t worry! You can always reach out to the team at Vargas & Vargas Insurance at 617-298-0655. We have been helping individuals, families and business for over 40 years and are the experts at this stuff and can help explain things or answer any questions you might have. Just give them a call, and they’ll be happy to help!

How Dog Breeds Affect Home Insurance Policies and Premiums

Posted on September 15, 2024August 26, 2024 by cvargas

Beware of Bites: How Dog Bites Impact Your Home Insurance and Steps to Take if It Happens

Owning a dog offers companionship and joy, yet it also brings certain liabilities that can impact your home insurance. Dog bites, in particular, are a significant concern for homeowners as they can lead to hefty insurance claims, increased premiums, or even policy cancellation. Understanding how dog bites can affect your home insurance, knowing which dog breeds are commonly flagged by insurers, and having clear steps to follow if your dog bites someone are essential for any dog owner. Here’s a closer look at these issues, supplemented with pertinent statistics on dog bites and their financial effects on insurance.

How Dog Bites Affect Your Home Insurance

Per The Insurance Institute, dog bites account for over one-third of all homeowners insurance liability claim dollars paid out, costing insurers about $900 million annually. In 2021, the average cost per claim was approximately $50,000, a significant increase from previous years, largely due to rising medical costs and sizable legal settlements.

When a dog bite occurs, it can lead to substantial medical bills, legal costs, and compensation for pain and suffering. Since homeowners’ insurance policies typically cover liability for dog bites, the insurer may need to pay these expenses. Consequently, if your dog has bitten someone, your insurance provider might increase your premiums or label you as a high-risk homeowner. In some cases, insurers might even choose not to renew your policy.

After a claim is made for a dog bite, insurance companies assess the risk of insuring your home. This assessment includes reviewing the circumstances of the bite, the breed of your dog, and any previous incidents. High-risk breeds or a history of aggression can lead to higher premiums, special provisions in your policy, or difficulty finding coverage.

Dog Breeds Often Flagged by Insurance Companies

Insurance companies sometimes identify specific breeds as more likely to bite or cause injury, based on statistical data regarding dog behavior and insurance claims. The breeds often flagged include:

Pit Bulls
Rottweilers
German Shepherds
Doberman Pinschers
Alaskan Malamutes

This doesn’t mean you cannot get insurance if you own these breeds, but it might be more challenging or expensive. Each insurance company has different policies regarding dog breeds, so it’s essential to check with your insurer to understand their specific rules and restrictions.

What to Do If Your Dog Bites Someone

If your dog bites someone, there are immediate steps you should take to handle the situation responsibly and mitigate potential repercussions:

Provide Aid and Contact Help: Ensure that the person bitten receives appropriate medical attention. If the injuries are severe, call emergency services immediately.
Report the Incident to Authorities: Depending on where you live, you may be legally required to report a dog bite to local authorities. This can also provide an official record, which might be helpful for insurance and legal processes.
Contact Your Insurance Company: Inform your insurer about the incident as soon as possible. They will guide you through the claims process and what to expect next.
Document Everything: Keep detailed records of the incident, including photos of the injuries, a written account of what happened, and any medical reports or bills. This documentation will be crucial for your insurance claim and any possible legal actions.
Consult a Lawyer: Because dog bites can lead to legal actions, consulting with an attorney who specializes in such cases can provide you with guidance and protect your interests.
Take Preventive Measures: After a biting incident, assess why it happened and take steps to prevent future occurrences. This might include training, behavioral assessments, or securing your property better.

Conclusion

While dogs are beloved members of many households, their actions can sometimes lead to unexpected consequences for homeowners. By understanding how dog bites can affect your home insurance and taking proactive steps to manage your pet’s behavior, you can enjoy the rewards of pet ownership while minimizing the risks.

Your Local Independent Insurance Broker: Your Best Ally in Protection

When it comes to insurance, working with a local independent broker is always in your best interest. Unlike captive agents who represent only one company, independent brokers have access to multiple insurers, allowing them to find the best coverage and rates tailored to your unique needs. They offer unbiased advice, personalized service, and advocate on your behalf if you ever need to file a claim.

At Vargas & Vargas Insurance, we’ve been serving families, individuals, and businesses for over 40 years. Our experienced team is ready to assist you with any insurance-related questions or concerns, including how your coverage may be affected by factors such as pet ownership. We’re committed to providing you with the guidance and support you need to make informed decisions about your insurance.

Have a question or need advice? Don’t hesitate to reach out. Our dedicated team is just a phone call away at 617-298-0655. Let us put our expertise to work for you and ensure you have the right protection for what matters most.

Captive Versus Independent Insurance Agents For Your Automobile and Home Insurance; An Honest Comparison

Posted on April 19, 2022April 12, 2022 by cvargas

When you’re shopping for insurance, knowing the different types of insurance agents is important as part of understanding whom you should work with.

There are two kinds of insurance agents — captive (who represents one insurance company) and independent (also known as an insurance broker).

Many online insurance companies, like State Farm, Allstate, and Liberty Mutual depend exclusively on captive agents, but some like GEICO and Progressive rely on a mixture of captives and independents.

Both types of agents can provide the kind of quality expertise you need to make one of life’s important financial decisions. But there are some big differences between the two.

Captive agents

Captive agents work directly for a single insurance provider and are limited to the products of that company. For example, if you call a captive agent who works for State Farm, he or she will market and try to sell you only State Farm products. How they get paid is set by their insurance company, and they are paid by that one company.

On the plus side, these agents are experts in what their insurance companies have to offer. But they cannot help a client who doesn’t need or qualify for their company’s products. And captive agents usually have quotas to hit to keep their job and earn bonuses. Although that’s not terribly different from independent agents, you might feel a bit more pressure to buy car insurance from a captive agent when all you really want is term life.

Independent agents

Independent agents, meanwhile, work for themselves and not any one insurance company. They sell policies from a variety of insurance companies, not just one, there is no increase in the premium to work with an independent insurance agent, and make most of their money through sales commissions and bonuses from the carriers.

Independent agents can save you some time by getting insurance quotes from a few different insurers, we have 11 insurance carriers that we can provide you with an insurance quote.

Which is best?

The type of insurance coverage you choose depends on your needs and your budget.

If you’re looking for multiple quotes from different companies, an independent insurance agent probably is the way to go. Vargas & Vargas Insurance can save you time and money, reach our agents at 617-298-0655.

Spring Cleaning & Maintenance Checklist to Prevent Home Insurance Claims

Posted on April 13, 2022April 12, 2022 by cvargas

Want to maximize your spring cleaning schedule to include maintenance items that can help prevent home insurance claims? Read on for some helpful tips!

Organize and declutter

Go through each room in your home and remove any objects that are not useful or needed anymore. Organize your storage space so that useful items are contained neatly. By preventing clutter from accumulating, you are reducing your fire hazards.

Store chemicals and other dangerous items out of the reach of children and pets

While you are going through your home, keep an eye out for any items that could be a potential source of danger for your children or pets. Look for medicine or cleaning chemicals that need to be stored in safe places. Consider adding child locks to certain cabinets to minimize the danger for children.

Create a Maintenance Schedule

Come up with a plan to help you prepare your home for general maintenance to help prevent serious issues down the road. Having a maintenance schedule helps you feel less overwhelmed by scheduling different services throughout the year, while also giving you peace of mind that your home will be up to date and as safe as possible.

Some must-include items for your maintenance schedule

Check your carbon monoxide and fire alarms. According to staysafe.org, carbon monoxide poisoning and fires are two of the leading safety hazards for homeowners. Make sure your alarms have fresh batteries and are in working order.
Change the air conditioning filter. Air conditioning filters are meant to sort out harmful particles such as dust and mold. By preventing the spread of mold you are keeping your house safer and your family healthier!
Inspect your roof. Check for missing shingles and clogged gutters. This helps prevent water damage to your home and its foundation.
Check Your Oil Tank. Unwanted oil tank leaks can cause a huge headache, especially because oil tank leaks are rarely covered with home insurance plans.

Stay one step ahead of your maintenance needs!

By keeping your house clean and up-to-date on maintenance, you minimize your risks of safety hazards and damages in the future. It’s worth it! Click here to read one of our earlier posts on Spring cleaning.

When you finish cleaning your house, give Vargas and Vargas Insurance Agency a call and we’ll help you clean up your insurance portfolio! One of our friendly and knowledgeable agents can review your home insurance, auto insurance, health insurance, and other insurance policies to make sure that you have all the coverage that you need, and at the right price. Don’t hesitate, call now – 617-298-0655.

What A Home Insurance Policy Doesn’t Cover

Posted on March 16, 2022March 23, 2022 by cvargas

Is your home insurance policy covering you when you need it most? If you’re like most people on a “standard” home insurance plan, there are several things that aren’t actually covered with your policy!

Don’t worry – you’re about to find out what a home insurance policy doesn’t cover, and how you can quickly make a few updates to your plan to make sure you’ve got the coverage you need.

Before we get into that, take a quick inventory of what you’re hoping is covered in the case an unfortunate event presents itself to you. As we take a deeper dive into what isn’t covered, you’ll be able to quickly identify whether you’ll need extra coverage or if you’re in the clear!

What Doesn’t A Home Insurance Policy Cover?

Most home insurance policies don’t cover the following:

In-Home Businesses
Floods
Earthquakes
Vehicles used for business
High-value Jewelry.

Take a quick look at each in more detail, and how you can protect yourself.

In-Home Businesses Are Not Covered By Your Homeowners Insurance

Did you join the recent surge of people deciding to jump into at-home work, including freelancing, or even starting a business that’s based in their home? Whether you’ve just started or you’ve been at it for years, many people are unprepared for a sudden loss to their business equipment.

Don’t let that be you!

There are several ways to get your business property covered if you’ve got a home-based business.

According to the Insurance Information Institute (III), you can:

Add a Policy Endorsement to your existing homeowners insurance. This simple endorsement is a simple way to increase your coverage to include business property. If your policy has minimal coverage for business property already (as some policies do), this can be a low-cost way to get the coverage you need.
Add an In-Home Business Policy. This policy is for you if you need more comprehensive coverage for business equipment and have a need for liability coverage for your business. It can be a life-saver if you need to recoup costs beyond simple business property, such as loss of important papers, records, income, etc.
Add a Businessowners Policy (BOP). If you’re a small/mid sized business that operates out of more than one location (including your home), you’ll want to consider the broader coverage offered by a BOP.

Be Careful: Floods Are Not Covered In Most Home Insurance Policies

This one is slightly tricky, as most people don’t think they live in an area susceptible to flooding.

However, “flooding” can mean many things in your insurance policy. For example, a failed sump pump or water damage due to a clogged drain are generally not covered in a standard home insurance policy.

Many people have been saved by adding a separate flood insurance policy, as there is some gray area in standard policies, and they chose to be safe rather than sorry!

Earthquakes Aren’t Covered

Earthquakes are on the rise, according to data compiled by the National Oceanic and Atmospheric Administration branch of the US Government (and shown in this chart). Despite this, earthquakes are not covered by most home insurance policies.

If the thought of an earthquake hitting your area makes you tremble a little, you may want to consider specific earthquake coverage to be on the safe side.

Vehicles used for business

Not surprisingly, vehicles used for business are not covered in a homeowners policy, even if the damage to the vehicle happens on your property.

High-Value Jewelry

Jewelry-lovers take note! If you’ve got jewelry valued at over $2,000, there’s a good chance your homeowners insurance will not cover these pieces.

To make sure you’re covered, you can easily add on additional coverage into your policy to account for the loss if something should happen to your valuables.

We’d recommend learning about coverage for commercial auto insurance if you own vehicles used for business, or check with your employer to ensure they have the correct coverage.

We’re Here To Help Find The Right Coverage For Your Situation

Don’t be alarmed if you’re in any of the categories above. Everyone’s situation is unique, and you deserve to be informed about what is – and what isn’t – included in your coverage.

Let’s talk over your current policy and make sure you’ve got everything you need for your situation.
Contact us today to get a customized plan, or to just get the peace of mind that you desire!

Homeowners Insurance Facts

Posted on March 10, 2022March 10, 2022 by cvargas

If you own and home or condominium with an outstanding mortgage, you are required to carry homeowner insurance. But, if you are thinking of purchasing one, you should know what insurance policies cover and don’t cover you for.

Some Loses are not a Part of Home Insurance

If you plan to purchase home insurance, you need to know that standard policies don’t cover earthquakes or floods. In these cases, you may need to add the coverage to your home or condominium policy or purchase separate policies that offer you coverage for these perils.

Some Dog breeds can make it Challenging to Purchase Comprehensive Insurance

All homeowner’s policies give you coverage if your dog bites someone. This way, the liability portion of your insurance saves you from financial ruin. But some insurance providers refuse to offer coverage to homeowners who have dogs with different breeds like Rottweiler and bulls. Therefore, you may have to dig a bit deeper to find the right insurance policy that will also cover you for dog bites.

Polices Can Cover Plane Crashes

Of course, there are chances of a plane falling from the sky onto your house, but some insurance companies still offer you coverage for this. They even offer you a plan for several things that can fall from the sky, including the tree.

Food Spoilage Coverage

A power outage can occur due to several problems. When your fridge is not working, your stored food may get spoiled in a few hours. Some insurance policies offer food spoilage coverage, this kind of coverage will pay you for your spoiled food.

Volcano Damage Plans

It might surprise you, but there are home insurances that cover volcanic damage. If you live near volcanic mountains, this plan is beneficial for you. Even if the volcanoes have been dormant for centuries, it still has some risks. Well, it’s better to save yourself than feel sorry.

Birds Damages and Vermin

Any damages caused by birds, Racoons, or squirrels making their way into your attic are not part of standard homeowner’s insurance plans. Whether wild birds have made a nest on your roof or have damaged your windows, you have to make repairs and replacements all by yourself. The best way to prevent further damage is to call animals experts like Clancy Bros Pest Control who can help you get rid of these creatures.

The Bottom Line

These homeowners insurance facts may have encouraged you to read the policies and plans carefully to get the coverage you are looking for. You can also read our blog on Home insurance terms you need to know..

At Vargas & Vargas Insurance, we offer top-rated insurance services that will help you keep your business safe during the winter season. All our clients enjoy customized insurance coverage to match their unique needs as we offer affordable prices. So contact us today for a free quote.

How Inflation Affects the Cost of Replacing Your Home

Posted on April 6, 2021March 25, 2021 by cvargas

The country’s economy depends on various variables, which include inflation. Inflation has a negative or positive impact on the local industries. Among the sectors affected by the fluctuation of prices is the construction industry. The following is an overview of how inflation affects the cost of replacing your home and how this impacts your home insurance premium.

How Does Inflation Affect the Construction of a House?

As a result of inflation, the building material rates, machinery rates, and labor wages increase annually. The prices of most house equipment also rise due to inflation. When replacing a home, the changes in rates cause a deviation between the initial project budget and the final budget.

The high cost incurred during house construction results in an increase in the insurance premium. The insurance companies raise their premiums to cover and keep up with the increasing repair cost caused by inflation or annual property tax increase. Homeowners should have their property valuated regularly. The new data can be used in the settlement process if the house is damaged.

Home Replacement and Its Effect on Insurance Premium

While determining the initial home insurance premiums, insurance companies consider factors such as the square footage, the year it was built, the number of stories, the number of kitchens or bathrooms, flooring, and roof covering.

During property replacement, the insurance company will replace the lost asset with a similar replacement of the same value and functionality as the original one. However, quality items and luxury add-ons such as swimming pools are expensive to fix or replace if damaged.

The increase in the new items’ prices and the risk of maintaining them force the insurers to increase their premiums.

Vargas and Vargas Insurance is one of the premier local independent insurance agencies. We work for our clients and not the insurance company. We will customize your insurance coverage to your specific needs at the right price. Also, we are here to answer all of your insurance questions. Contact us today.

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