The Department of Housing and Urban Development has announced a reduction in Mortgage Insurance Premiums (MIP) on FHA loans. This change is set to go into effect on March 20, 2023, and will cut premiums from 0.85% to 0.55%, for most mortgages insured by the FHA. This substantial reduction in premiums is expected to save homeowners and homebuyers an average of $800 per year, which is a significant amount of money for many households.
Making Home Ownership More Affordable
HUD’s goal is to make homeownership more affordable and accessible for all. This could be done by reducing the amount of money that is needed downpayment or closing costs. This would help stabilize the housing market and make it easier for more people to get into it.
What Does This Mean
The FHA mortgage insurance premium reduction means that borrowers will now be able to purchase homes with a down payment as small as 3.5%. This is great news for those who are looking to purchase a home, as it becomes more accessible with this reduction. Additionally, the interest rates are lower this spring, which makes it a good time to buy a home.
At Vargas & Vargas Insurance, we understand the importance of saving money, especially when it comes to your mortgage payments. With the recent rule changes, you can expect to save money on your monthly mortgage payments, which could add up to big savings over the life of your loan.
But that’s not all. We can also review your Home, Automobile, Business and Life Insurance policies to make sure that you are properly protected at the best possible price. We are committed to helping you save money wherever we can.
Contact our team today at 617-298-0655 to learn more about how you can save money on your mortgage payments and other insurance coverage. Our knowledgeable staff is always available to answer any questions you may have and to provide you with the best advice for your individual situation. Don’t wait any longer – call us today to get started!
When you’re a condominium property manager, everyone comes to you with varying needs. You are responsible for everything from hiring personnel to maintenance work and repairs. This means you need to have a good master policy that is affordable and realistic for the needs of your HOA.
Unfortunately, a lot of property managers don’t do much shopping around or take the cheapest alternative regardless of coverage.
Today, let’s take a look at the mistakes you want to avoid when looking for the best master policy for your condo.
What is a Master Policy?
Insurance for condominiums is split into two distinct elements: the HO-6 policy and the master policy.
The HO-6 policy is used to cover various liability claims and personal belongings within a unit. This includes expenses that might occur if someone is unable to stay in the residence should something happen that is covered by the master policy.
A master policy is essentially one that blankets multiple properties or perhaps employees. In this case, we’re talking about one that covers all of the units within the condominium. This is often cheaper and easier to manage as each individual unit has the exact same coverage aside from the HO-6.
Things to Avoid When Shopping for a Condo Master Policy
1. Misunderstanding the Coverage
There are a few policies that you need to be aware of: bare walls, single entity, and all-inclusive. To choose the right one, you need to understand what each of these entails.
2. Not Properly Vetting
The last thing you want to do is rush through the insurance process. Don’t skimp on the vetting process and make sure you measure proposals against the market average.
3. Not Providing Accurate Details
It’s OK to use a general template when querying for proposals from insurers. Just make sure you don’t copy it word for word. Provide the right details about your property and don’t ask about things that are irrelevant.
4. Settling On the Cheapest
Sure, you want to save money on the master policy. But you shouldn’t only prioritize the price when looking at policies. Have an agent help by disclosing the HOA budget and what is available.
5. Too Many Agents or Insurers
Having too many agents helping with the process can slow it down or create a layer of confusion when looking for a master policy. It’s better to work with one agent who has access to many insurance providers than to have too many cooks stirring the pot.
6. Not Consulting HOA or Board of Directors
As a property manager, it’s your responsibility to contact the condominium board of directors and the HOA before requesting master policy quotes. For one thing, the HOA often has a firm grasp of what the community needs in terms of coverage.
7. Poor Management of the Proposal Process
Improper management of the proposal process can cost time and money for the HOA. Not to mention frustrating the unit owners. Take the time to ensure every element is addressed and don’t rush through the process.
Find the Best Master Policy for Your Condo
Just as you would with homeowners or auto insurance, it’s ideal to initially shop around and find the best master policy for your needs. And at Vargas & Vargas Insurance, we use our network of insurers to help you do just that. Contact us today to find out how we can help you get the best master policy for your condo.
Your unit owners don’t want to just settle, so why should you?
The agents at Vargas & Vargas Insurance serving the Dorchester, MA area offer home insurance policies to protect and secure one of your most significant investments.
While home insurance is not required under Massachusetts law, having a good policy in place is still very important. If you owe money to a bank or mortgage lender for the purchase of your home, you will be required to carry a home insurance policy. Even if you’ve already paid off your house, you should still have homeowners insurance because you never know when disaster will hit.
What Does Home Insurance Cover?
A home insurance policy will cover the structure of your house along with the items inside of your house. These can include your personal belongings, such as toiletries, clothing, and jewelry, as well as your furniture, appliances, and so much more.
A variety of home insurance policies also cover any outbuildings on your property. These can include garages and sheds as well as decks and porches.
You never know when your house will become damaged or destroyed by a natural disaster, a fire, or even an act of vandalism. You also can’t predict that your home will be burglarized, but in any of these cases, your home insurance policy will help replace the lost items and repair or rebuild your house.
Contact Vargas & Vargas Insurance
The old saying, "It’s better to be safe than sorry," applies to home insurance policies. To create the best home insurance policy for you and your situation, contact the agents at Vargas & Vargas Insurance serving the Dorchester, MA area today!
Every location has its own practices when it comes to insurance premiums and what affects them. In this case, I’m talking about the insurance surcharge you could face after an accident in Massachusetts. Today, I break down the steps for the appeal process and why it’s important.
What is an Insurance Surcharge?
A surcharge on your insurance is a fee that is added to your premiums. This usually happens if you’re regularly involved in at-fault accidents, pay your premiums late, or have a lapse in coverage.
However, a surcharge can also affect your insurance if you’re simply adding another vehicle to the policy. In those cases, though, you can work with the insurer to see if there are discounts available for multiple-car policies.
In this article, I’m focusing on appealing the insurance surcharge that comes after an accident.
Steps to Appeal the Insurance Surcharge
The insurance surcharge will kick in if the insurer deems that you are more than 50% at fault. According to Massachusetts law, you have up to 30 days from the notice of the surcharge to file an appeal with the Division of Insurance Board of Appeal.
1. Complete and submit the Appeal Form that is located on the backside of the Notice of At-Fault Accident Determination. You’ll need to enclose the $50 filing fee made payable to the Commonwealth of Massachusetts. The address is located on the Appeal Form.
2. You will receive a notice in the mail acknowledging the receipt of your appeal.
3. In approximately three weeks, you’ll receive a hearing notice. At this hearing, you can attend yourself, submit a statement at least five days before the hearing, or have a representative appear on your behalf.
4. The hearing will last around 15 to 20 minutes to determine the justification of the surcharge.
5. About two to four weeks after the hearing, you’ll receive a decision from the Board of Appeals as to whether the insurance surcharge will remain.
Note: If the surcharge is added to your insurance premiums, you’ll still have to pay the additional amount. Otherwise, the insurer can cancel your policy.
How Much Will Rates Increase if You Don’t Appeal?
The increased amount of your insurance premiums will depend on a lot of factors. It’s not exactly a one-size-fits-all answer, to be honest.
For example, rate increases are subject to:
your previous driving record.
how many years you drive that are accident-free.
how often you file insurance claims.
Essentially, it all comes down to how much of a risk the insurer deems you for coverage. If you have a spotless driving record and make your payments on time, the increase might be nominal.
Use the Appeals Process Correctly
The appeals process is meant to help the innocent avoid paying out when accidents were clearly not their fault. As long as you explain your position to the magistrate, and are not at fault, you may avoid these extra fees.
At Vargas & Vargas Insurance, we can help you further understand the process and what you need after an accident. Contact us today to understand your options and what you can do to avoid issues like this in the future.
Auto insurance is not only necessary to financially protect you in the event of an accident, but it’s also the law when you’re behind the wheel. Unfortunately, a lot of us wind up paying far more than we need to for this protection. Today, let’s go over the basics of getting the best rates for your auto insurance.
There is a bit more at play than just finding a “cheap” company.
How to Get the Best Rates for Auto Insurance
In most instances, you’ll have to demonstrate that you’re not a high-risk driver. The higher the risk to the insurance company, the more you’ll pay.
Keep a Clean Driving Record
Perhaps one of the most vital methods of lowering your insurance rates is by keeping a clean record behind the wheel. This goes along with most “Good Driver” discounts as it demonstrates how low of a risk you are while driving.
Group Discounts with Work or Organizations
Some organizations and places of employment offer group discounts. This is when an insurance plan is offered to members and is usually considerably cheaper than getting one of your own. The catch is that sometimes these will have “enrollment periods” of maybe once or twice per year.
Increase the Deductible of the Auto Insurance
In some cases, you’re able to increase the deductible of your insurance policy. This means you’ll need more money upfront in the event of repairs and such. The trade-off is a lower annual premium as you’re taking on more of the financial responsibility yourself.
Work on Your Credit Rating
Like most other things in life, your credit rating can affect your auto insurance premiums. The better your score, the more likely you’ll have to pay less. This is one of those things that can take some time to improve. However, the end results are often worth the effort.
Anti-Theft Device Discounts
Many insurers will have discounts available if your vehicle has anti-theft devices installed. Alarms, cut-off switches, and other technologies prevent people from stealing your vehicle. This means the auto is at a lower risk of being stolen, which then reduces the risk to insurance companies for claims.
Don’t Pay for What You Don’t Use
If you don’t use a specific service, don’t add it to your insurance policy. For example, there are a lot of people who pay for roadside assistance but have never used it. Talk with your agent and find out what you can remove that you know you’ll never really use.
Shop Around for Auto Insurance Rates
Another one of the most common methods of getting the best auto insurance rates is by shopping around. However, don’t assume cheap equates to being better. Sometimes the lower price tag comes with a vastly reduced capacity of financially protecting you.
Consider Pay-per-Mile Insurance
Some insurance companies will offer a pay-per-mile plan. This is when you need insurance but don’t really drive all that much. It goes along the lines of a “Low Mileage” policy. These are usually the most ideal for students and people who drive less than a few miles per day.
Annual Policy Updates
Lastly, don’t forget to update your auto insurance policy at least once per year. A lot of things can change in 12 months, including your credit rating and good driving record. Not to mention it gives you a chance to customize the policy further depending on your foreseeable needs.
Auto Insurance is a Necessity
A lot can happen when you’re in control of more than a ton’s worth of steel. It takes a fraction of a second for an accident to occur whether you’re paying attention or not. Having the best auto insurance for your needs will protect you from breaking the bank in most cases.
At Vargas & Vargas Insurance, we understand just how imperative insurance is, especially in today’s world. Contact us today to find out how we can help you find the best rates possible for your situation. We’ll use our network of companies to help secure something affordable that will keep you safe.
Many experts agree that owning property is a great investment, as the need for housing will always exist. Owning and managing a rental property can be very profitable, but what are the pros and cons of this venture?
Making a house feel like a home is made up of many things, from our belongings, pets, and family. Therefore, having the right insurance coverage to protect you from any unforeseen events is essential. As each home is unique, your insurance should be tailored to your needs and requirements. Otherwise, you may find that your claim for damages isn’t covered and have to pay for it yourself.
Vargas & Vargas Insurance can help you in making sure your home is fully insured. Don’t put off checking if your coverage is sufficient until it’s too late! Homeowners are sometimes shocked to discover some areas of their insurance policies are not covered. Although dealing with insurance can be tricky, we can help make it easier by providing some helpful advice about what may be overlooked or insufficiently covered in your policy.
A Comprehensive Coverage Level
When it comes to ensuring your home is secure, the insurance policies you choose should be comprehensive and detailed. Many insurance holders purchase coverage at various levels, with one being more extensive than the other. Generally, we suggest getting the highest tier available as it usually provides sufficient protection for what we need. Some agents start with a lower tier and gradually increase their coverage; however, this is not recommended when it comes to home insurance as there can be areas left unprotected or overlooked.
When protecting the things we value most, it’s not advisable to skimp on specific areas as you will discover that you get what you pay for. You need to ensure, first and foremost, that you have the right protection at an affordable cost, even if it is not the lowest price available.
Sufficient Insurance Coverage Levels
Your home insurance policy consists of six different coverages, each with its own coverage limit – the maximum sum your insurer will pay out should you file a claim. Some insurers may provide lower limits to reduce the cost of the quote they offer, however this could be inadequate for certain types of claims. In what follows, we will outline each coverage and suggest suitable limits for each.
Dwelling
Dwelling coverage safeguards the physical structure of your dwelling from destruction caused by a range of causes. With regards to dwelling, you are not permitted to decide on the coverage amounts. Instead, it is determined automatically depending on the cost of replacing your home.
Other structures
Home insurance policies also cover damage to structures not attached to the main house, such as fences, garages, pools, driveways and sheds.
Generally, the amount of coverage is set at 10 or 20 percent of the amount for the dwelling coverage; however if you have expensive other structures that are worth more than these limits allow for, you can purchase additional coverage.
Personal property
This coverage applies to any possessions you have in your house and garden. If they are destroyed or taken, the insurance will pay to repair them or get new ones.
The amount of coverage is usually equivalent to 50-70% of the dwelling protection provided by the insurance company, and this limit is pre-set.
Loss of use
If you need to leave your home due to a disaster or emergency, loss of use coverage will pay for temporary housing. Generally, the maximum amount covered is 20-40% of the dwelling coverage.
Medical payments to others
This policy provides financial protection for medical costs incurred by someone hurt while on your premises. This includes damage from falls, cuts, dog bites and other injuries.
Generally speaking, the minimum coverage limit for this part of the policy is $5,000.
Personal liability
When a person is hurt on your property and you are sued for it, this section of the policy can help pay for medical bills, legal costs or settlements.
It is essential to choose a coverage limit that is high enough – usually between $100,000 and $1 million – as lawsuits today can be expensive. In some cases, they may even exceed that amount, which is why we advise people to get umbrella insurance too.
Additional insurance options
This optional coverage can be a useful addition to your policy; it is not included in the main categories listed above. Personal injury coverage safeguards you from potential libel, slander, or defamation lawsuits.
Sewer and Water Backup Endorsement
This coverage, which is an additional expense, covers any overflow due to backup in the plumbing system, such as pipe backups, drain blockages, sewer line clogs or sump pump overflows. This is distinct from the standard overflow protection, which guards against backups in toilets, sinks and drains.
Service line coverage
This coverage, available for an additional fee, covers any repairs that need to be made to pipes or wires coming into your premises. These may include electrical lines, water pipes, or septic lines. The typical limit for this type of coverage is usually between $10,000 for services and $50,000 – 100,000 for equipment repair.
Equipment breakdown coverage
This coverage compensates for any damage to your home appliances (air conditioning, furnaces, etc.) caused by power surges, electrical shorts, mechanical failures, motor burnout or operator mistakes.
Scheduled Items
Scheduling items is a great way to guarantee your valuables are protected. By paying a few extra dollars, jewelry, art and other precious objects will be insured if they are damaged or stolen.
One of the benefits of this policy is that if you make a claim there is no deductible and mysterious disappearance (losing an engagement ring down the drain) would be covered too. T
o avoid having to pay out-of-pocket for losses, we recommend speaking with your insurance agent to ensure these important coverages are included in your policy.
New Additions and Alterations Yo Your Home
Making improvements to your home can be enjoyable, but it is important to evaluate your insurance policies to guarantee that any new changes are adequately insured.
Adding value to your property through renovations or new additions requires special attention when reviewing your home insurance policy. Not only does a stunning kitchen renovation affect the look of the house, but also any expansion of the square footage should be noted as well. If you are increasing the size of your house, then you need to modify the limits for dwelling coverage. Likewise, if you are making significant changes in outdoor areas such as a swimming pool or patio area, then other structures limits need to be adjusted accordingly.
Examining any considerable alterations to your home can be a beneficial technique to review and adjust your existing insurance policies, or search for another provider if you don’t feel satisfied with the amount of service from your present insurance company.
Working Remotely Or Running A Business From Your Home
It is easy to think that working from home would be included in a typical home insurance policy, given the increase of people who do this. However, this is not necessarily true. If you are just doing paperwork at home in your pajamas, there is no need for extra coverage. However, if you are starting a business from your house such as selling jewelry or running a photography studio, it may be necessary to take another look at your policy since some risks associated with those kinds of businesses may not be covered by the standard plan.
When talking to your insurance agent about any business activities conducted in your home, they will confirm if it is a “permitted incidental occupancy”. This would qualify you for restricted liability and property coverages. In the event that your business venture isn’t covered by this exception, you will need to get a complete commercial insurance policy to ensure proper protection.
Starting a home business can be an economical way of entering many industries from the comfort of your own home, but it is essential to take all the necessary precautions to ensure that the business succeeds.
Local Independent Insurance Broker
It can be difficult to know how to best insure our homes, but these tips should help point you in the right direction for obtaining the most suitable coverage. If you still have queries regarding your policy or would like further information, Vargas & Vargas Insurance will be happy to answer your questions; contact us at 617-298-0655.
The agents at Vargas & Vargas Insurance serving the Dorchester, MA area are happy to explain the importance of having a renters insurance policy.
Many people who rent their home, apartment, or other types of home are under the impression that their landlord’s property insurance policy will cover their personal belongings, but that is not the case. While most landlords in Massachusetts are required to have property insurance on the properties they own, it does not cover the belongings of the tenants living in these places. This is why a renters insurance policy is so fundamental for all tenants to have in place.
What Does Renter’s Insurance Cover?
Renters insurance will cover all of your personal belongings, such as your clothing and toiletries, furniture, appliances, and anything else you have purchased for your home. This means that if your house catches on fire, you will not lose everything you own because your renter’s insurance policy will assist you in replacing the items you lost and then getting back on your feet. A renters insurance policy can also assist you if a natural disaster occurs and destroys or damages the home you are renting or if the place is vandalized. A renters insurance policy can also assist you in paying for items that are stolen in a burglary.
Contact Vargas & Vargas Insurance
To obtain an adequate amount of renters insurance for your situation, you will need to create a policy. Call the experienced and knowledgeable renters insurance agents at Vargas & Vargas Insurance serving the Dorchester, MA area today to obtain a quote and to get your renter’s insurance policy started!
Service line breaks can be costly and unexpected, as they are not usually visible to homeowners. These lines provide water, gas, electricity, and other essential services to homes. At Vargas & Vargas Insurance we’ve seen how damaging a service line break can be when homeowners must pay for repairs out of pocket due to a lack of coverage on their homeowner’s insurance policy. Homeowners should only have to worry about having to dig up their garden for access if there is a punctured pipe – not the full cost of repairs too.
In this article, we’ll explore the optional endorsement you can add to your policy that provides protection for your home from any service line damages, as well as what is and isn’t covered in the policy.
Does Home Insurance Cover Service Lines?
Service lines are an important aspect of a home, but they are not usually included in a typical homeowners insurance plan. However, it is possible to include coverage for service lines by purchasing an extra endorsement from most insurers. This type of coverage provides protection from any unexpected expenses caused by damaged service lines on the property, such as tree roots blocking water pipes or cracked sewer lines. It would cover the costs for fixing or replacing these utility lines, including the expensive digging required to access them and any landscaping that may be disturbed during repairs.
Once your deductible has been paid, your insurance provider will cover the costs of repairs or replacements. Service line breaks can cost anywhere from $5,000 to $10,000, so it is beneficial to add this endorsement to your policy in order to avoid incurring these large expenses out of pocket.
Damages That Are Covered
Service line coverage endorsement typically covers damages such as:
Wear and tear
Rust, decay, deterioration, and corrosion.
Additionally, it may cover damage from tree or root obstruction or
Vermin, insects, or rodents.
Landscaping or excavation accidents,
Freezing,
Collapse, and
Mechanical or
Electrical breakdown may also be covered.
Weight from cars can cause the collapse of an above-ground structure.
The Types Of Services Provided Include:
Examples of the various services that are part of a house can be seen here.
Telephone cable lines
Water Pipes
Drains,
Natural gas
Sewage
Fuel
Sprinkler systems
Liquid flow lines
Steam
Fiber optics
Buried electric wires
Types Of Service Lines Not Covered
These service lines are not included in the service line coverage.
Fuel containers
Cabling or pipes that traverse a body of liquid
Sewage systems
Wiring or tubing that isn’t linked up and ready to go
What Does Service Line Coverage Cost
The cost of this coverage is actually very affordable and provides important protection. This coverage would usually cost between $50 and $100 per year for the $10,000 to $20,000 of additional coverage it offers on top of your homeowner’s insurance policy.
Overall cost and premium would vary depending on the insurance carrier. Because this coverage is so affordable and offers important protections, Vargas & Vargas Insurance tends to recommend this coverage for all of our client’s policies.
Protecting your home from service line breaks
Staying on top of the upkeep and inspections of your home can be tricky, so it’s a good idea to ensure you’re protected from any possible damage by having comprehensive coverage in your homeowner’s insurance policy. As a homeowner, it is essential to understand what is included in your insurance policy and the areas where you may not be covered.
Your Local Independent Insurance Broker
Vargas & Vargas Insurance is dedicated to providing customers with the best service possible. We are independent brokers and work with many financially strong insurance companies to customize an insurance plan that meets the individual needs of our clients. For four decades, we have been helping homeowners understand the significance of having the proper homeowners insurance.
When buying a new house, getting help from a trustworthy insurance agent and an experienced mortgage broker is essential. Even if you have bought thirty homes before, you may not realize that homeowner’s insurance can complicate the mortgage approval process in Boston, MA.
Mortgage Company Requirement
When obtaining a loan from a bank or other lender, you will be expected to provide proof of an insurance policy sufficient to either rebuild the home or cover the mortgage amount. Your chosen mortgage broker or loan officer has to meet the lender’s standards, but it is also important for your home insurance policy to cover what it would cost to reconstruct your house in case of a claimable event and not just the value of the mortgage.
Replacement Cost Versus Mortgage Amount
It is likely that the amount to reconstruct your home will be different from the mortgage amount you take out. You certainly don’t want to miss the difference in case of a disaster such as a fire. For example, if you borrowed $250,000 after making a down payment of $50,000, that means the house is worth $300,000. But reconstructing it (including labor and materials) could cost up to $375,000. It is important to remember that there is a variation between buying and rebuilding your house.
An appropriate homeowners insurance policy would cover up to $375,000, not the amount of your mortgage.
The Mortgage Company Binder Requirement
Your mortgage broker needs to see an insurance binder with the bank’s name and the proper language. Failing to provide this correctly could lead to a postponement of the closing date. To ensure that you are prepared, a reliable Boston MA, mortgage broker will supply the exact language the bank requires and thoroughly analyze the binder prior to the closing. This way, they can make sure that the binder contains all of the necessary information and meets all of the guidelines set out by the bank. They can also help ensure that the binder is properly formatted and all of the necessary details and terms are included. This can help avoid any potential issues or delays on the closing day. By taking these steps, you can be sure that you are well-prepared for the closing and that everything will proceed smoothly
When is a great time to shop around for your insurance binder
We recommend calling local independent insurance brokers around the time that your offer is accepted and you have scheduled the home inspection process. This will give your insurance broker enough time to shop around for the best coverage at the best price for you and your new home.
Insurance Discounts
At Vargas & Vargas Insurance, we recommend that homeowners bundle their house and car insurance to get all the possible discounts. We work closely with the top mortgage brokers to ensure they have the necessary paperwork done on time; having an insurance binder is a key part of getting a home loan approved. We are experienced in dealing with all mortgage brokers in Massachusetts.
Local Independent Insurance Agency
Vargas & Vargas Insurance is a local independent insurance broker, we work for you, the customer, and not any one insurance company, and we always have time for you. We shop around with many local and national insurance companies to offer you a tailored fit insurance policy for your specific needs. We have been helping first-time home buyers for over 40 years and teaching them about the significance of their homeowner’s insurance, call us today.
