Do you have life insurance? If not, what’s stopping you from having this policy?
If you’ve family members who depend on you for their daily bread, then you need to think again. Consider the state you’d leave them in if you were to die today. The funeral costs alone are too high. Consider any mortgage or student loans you’d been paying. Clearly, these are not debts you want to pass on to your loved ones.
You need to save your loved ones from such problems by purchasing a life insurance policy. If you’re not sure why you need one, our team at Vargas & Vargas Insurance has compiled this guide for residents of Dorchester, MA.
You Need Term Life Insurance
There are different types of life insurance, and term life is one of them. If you’re like 90 percent of people with life insurance, you’ll choose to go with a term life insurance policy.
As the name suggests, term life insurance covers a specific period. In most cases, it is 20-30 years. The aim is to ensure that your loved ones are protected if you die during this period, mostly your working years. It has no cash value until you die, and the premiums you pay are smaller than for whole life insurance.
Insurance is Not an Investment
Since some life insurance policies have cash value, you might think that this is a form of investing in the future. However, this should not be the case. If your goal is to grow your capital over time, you’re better off trying something else.
What you need to put in mind is that you’re protecting your loved ones. If they don’t need any protection, you don’t need this policy.
Are You Considering Buying Life Insurance in Dorchester, MA?
If you’re shopping for life insurance, this is part of the information you should know. There’s still much more you need to know about life insurance. That’s why you need to reach out to our Vargas & Vargas Insurance experts for more information.
When it comes to your home, proper home insurance coverage is vitally important. However, insurance terminology can make reading a quote or policy feel like reading a foreign language. Without understanding home insurance terms, you could find yourself with far less coverage or far different coverage than you thought. Vargas & Vargas Insurance is committed to making sure you have the knowledge you need to make the right insurance decisions regarding your home insurance.
General Home Insurance Terms
Declarations (Declarations Page)
This refers to the page of your policy that gives your basic information, including the name and address of the insurance company, coverage to and from dates, basic coverages, deductible, premium, and any additional interests. It’s an overview of your policy and is often what your mortgage company will ask for to show proof of coverage.
Insured/Insurer
The insured is the person that coverage is being provided for—generally, the owner of the home. The insurer is the insurance company providing the coverage for your home.
Additional Insured
The declarations page will list the additional insured, along with the insured. The additional insured is anyone else, other than the homeowner, who has a legal interest in the home. The most common additional insured for a homeowners policy is the mortgage company. An additional insured will be notified of the policy renewal and if the policy is in danger of cancellation. They may also be payees on larger claims checks.
Policy Period
This is the time period your home is currently insured for, which is usually one year. Most homeowners insurance policies renew automatically, assuming the premium is paid.
Premium
The annual amount you pay for your homeowners insurance is the insurance premium. This premium can come in convenient payments of monthly, quarterly, or semiannual installments. Typically, homeowners pay it directly to the insurance company through a mortgage escrow account.
Deductible
The deductible is the amount the insured (homeowner) is responsible for in the event of a claim. If a claim is less than the deductible amount, the insurance company bears no responsibility for payment of the claim. If the claim is more than the deductible, the deductible will be subtracted from the claim’s total amount before the insurer pays out. The deductible is not paid to the insurance company.
All-Risk/Named-Peril
An all-risk insurance policy covers all potential causes of loss other than the ones specifically excluded in the policy. A named-peril policy covers the causes of loss specifically listed in the policy and no others. While an all-risk policy can be more inclusive, it is generally much more expensive and not as common. Most insurers choose to cover the most common risks, providing a broad scope of protection while keeping premiums affordable.
Replacement Cost Value (RCV)/Actual Cash Value (ACV)
When you purchase your home, the sales price is based on the market value of your home. The price depends on the desirability of the location and many other factors. When you have a loss, however, the location’s desirability has no bearing on the cost to rebuild your home or replace your roof. That’s why it is important to understand the difference in replacement cost and actual cash value.
The replacement cost value is the cost to replace a damaged item or item, whether it be your TV or your roof. The actual cash value takes into account the depreciated value of the item. If your roof is ten years old, you got ten years’ worth of value from your roof, so a deduction is taken from the amount paid for your claim to account for the age of the roof. Knowing which type of coverage you have before a claim can prevent many misunderstandings during the claims process.
Vargas & Vargas Insurance is a premier local independent insurance agency. We work for our clients, not the insurance company. We will customize your insurance coverage to your specific needs at the right price and are here to answer all of your insurance questions. Contact us today.
Home improvements breathe new life and style into your home. They can also bring a decrease in your homeowners insurance premiums. Both can be exciting. Which home improvements not only bring new form and function to your home but also can decrease your homeowners insurance?
1. New Roof
Roof insurance claims compose a large portion of total homeowners insurance claims. Newer roofs are typically better able to handle wind and hail storms. Perhaps when you first purchased your home, you didn’t qualify for a preferred policy due to your roof’s age. But because of the new roof, you may now qualify. Your new roof’s material can also impact your homeowners insurance rates. More importantly, by keeping your roof maintained, you may be able to avoid claims. This will have a positive impact on your insurance through claim-free discounts.
2. Security System
An alarm system monitored by a central station is another way to avoid potential claims by discouraging burglaries and quickly notifying emergency services in the event of smoke or fire. This helps you retain your claim-free discount and prevent damage to your home and loss of property. Your insurance company rewards these efforts in the form of a discount.
Most insurance companies require that the alarm system automatically notify emergency services. It cannot simply sound an alarm or record video. However, they may offer a partial discount for these options. A central station burglar alarm will save you between 5%-15% on your home insurance if your smoke alarms are connected to the monitored system.
3. Wiring and Plumbing Updates
Fire from faulty wiring and water damage from plumbing concerns are also common homeowners insurance claims. The age of these systems may have prevented you from receiving a preferred rate initially. Updating these systems could change that.
While discounts can be available for wiring and plumbing updates, these updates may require the wiring and plumbing to be completed updated by removing and replacing all existing writing and plumbing, rather than a partial update. But any updates to your wiring and plumbing can prevent damage. It can therefore reduce claims and benefit your homeowners insurance over time, even without a specific discount.
4. Simple Updates: Deadbolt Locks and Fire Extinguishers
Deadbolt locks are a simple update to your home that can provide added protection and a potential discount for your insurance. Fire extinguishers may be another easy addition to your discount portfolio.
5. Pool Fencing
Insurance companies often require fencing around a pool due to the inherent risk of an accessible attractant to a drowning hazard. If you do not have a fence around your pool, adding one will reduce the risk of a tragedy. It could also prevent surcharges on your insurance for this risk.
Home improvements provide value to your home regardless of the potential benefits to your insurance. However, when determining which improvements are suitable for your home and the costs associated with each, possible decreases in your homeowners insurance should be considered.
At Vargas & Vargas Insurance, your premier local independent insurance agency, we work for our clients, not the insurance companies. Contact us for advice on how the home improvement projects on your list can reduce your homeowners insurance premiums.
When deciding the monthly premiums for your home insurance policy, your insurer has to consider multiple factors. However, with time, you may feel the need to improve your home for a better living experience. What most homeowners do not know is that such improvements can expose them to uninsured risks. Here’s how home improvements change your premiums and what you should do after such enhancements to keep things in check
1. Effects of Home Improvements on Insurance Premiums
Once you improve your home, you either increase the property’s value, increase the likelihood of peril, or protect the property from risk. Based on the following three scenarios, your insurer may increase or reduce your monthly premium.
Home Improvements That Increase Your Premiums
At some point, you may decide to expand the size of your house, upgrade your kitchen space, or even redesign your bathroom. Such improvements increase the value of your property to an amount exceeding the sum insured. Increasing the value of your property means increased your monthly premiums.
You also attract higher monthly premiums on home improvements that your insurer considers risky. For example, you may decide to spice things up with a private pool. While this increases your property’s value, your insurer may increase your monthly premiums to bolster your liability cover.
Home Improvements That Reduce Your Premiums
Depending on the nature of your home improvements, your insurer can also reduce the amount you pay in premiums. You can decide to renovate your roof or install one that is resistant to disaster. You can even choose to have a locking fence around your pool or install a protective cover. Such improvements are likely to reduce your monthly premiums as they reduce the likelihood of peril.
2. What You Should Do Before Home Improvement Projects to Be Safe
Before starting on any home improvements, you need to contact your insurer. Whether it is a simple addition or a major renovation, your insurer should let you in on its effects on the value of the property. Failing to notify your insurer of improvements may lead to underinsurance.
Almost all home improvements change insurance premiums. Let’s face it; there’s still a chance that you made some home improvements without notifying your insurer. It is not too late. Be sure to contact Vargas & Vargas for guidance on the best way forward. We are a premier local insurance agency that places your interests before those of your insurers. We work for you only and will help you find the best insurance coverage for your needs.
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.
Home improvements are exciting. Visions of increased functionality, luxury, and property values are almost equal to the initial purchase’s excitement. Home improvement projects are at an all-time high. Families are spending more time at home due to COVID-19 restrictions and fears. As a result, they are making their home as enjoyable as possible. There are many decisions to be made and multiple factors to take into consideration. One of those considerations should be the probability of an increase in your homeowners insurance premiums. Look at what can happen with these five popular home improvements that could increase insurance costs.
1. Increased Square Footage
A home that fits your family’s needs at the time of purchase may no longer do so after a few years. As your family grows, increased square footage is often needed. This could be in the form of an addition to the home, but it can also include finishing existing unfinished spaces, such as a basement or attic. Additions can also mean outdoor space. The addition of a deck, porch, covered patio, or attached garage also necessitates homeowners insurance changes.
Each of these additions increases the rebuild (replacement) cost of your home. Increased replacement cost directly equates to a needed increase in your dwelling coverage. More space usually means more personal property purchases, as well. This could also mean a need for an increase in personal property coverage.
2. Kitchen and Bath Upgrades
Kitchen and bath upgrades are some of the most popular home updates. These upgrades can have the greatest return on investment for property values. While your homeowners insurance is based on replacement cost, not appraised value, upgrades to kitchens and baths mean it will cost more to put your kitchen and bath back to their upgraded condition in the event of a loss. It’s essential to make sure you increase your homeowners insurance coverage relative to those increased replacement costs.
3. Home Office Additions
As more and more individuals work from home, home office additions are becoming more common. A home office may be a modification to an existing space or an addition to the home. It could also mean you need more personal or business property coverage on your homeowners insurance. Your liability exposure is also enhanced, and coverage may need to be increased accordingly.
4. Pools
In-ground pools are arguably the most fun addition. They are also a costly addition with enhanced liability risk. Your homeowners insurance company may require fencing or other risk reduction measures. Reviewing your increased risk and making any needed changes can make the poolside all the more relaxing. A personal liability umbrella policy can add additional liability protection and peace of mind.
5. Home Business
Brick-and-mortar businesses are rapidly decreasing as companies move to a virtual or home business environment. Business in the home brings about an entirely different set of coverages and risks than a personal home office. Disclosing a business in the home and exploring how this affects your homeowners insurance is crucial to your business’s protection.
There are many home improvements that could increase insurance costs, but home upgrades are an excellent way to extend the functionality and enjoyability of your home. Potential increases to your homeowners insurance would be due to the increased cost to rebuild your home and protect your assets. The value of these upgrades and the knowledge that your home improvements are properly covered far surpasses the cost of potential changes in your homeowners insurance premiums.
Vargas & Vargas Insurance is a local, premier independent insurance agency. We understand your home is important to you. So we will customize your insurance to your specific needs at the right price. We will also carefully evaluate home improvements that could increase insurance costs. Contact us to discuss your home insurance needs.
Having your house insured can save you a lot of trouble. House insurance usually covers your house and its contents. However, policies vary, and some may cover the structure alone. In case a risk materializes, you should put in a house insurance claim for compensation from your insurer. Settlement can take days, months, or even a year, depending on the damage.
Making a house insurance claim can be very complicated. Most insurance companies expect you to fill a claim form, giving a detailed description of the incident. You may also have to attach proof of purchase to have damaged items replaced or repaired (depending on your policy). Here’s what happens when you put in a claim on your house insurance.
1. Determination of the House Insurance Claim
Once you put in a claim on your house insurance, your insurer is expected to respond within two weeks. The insurer may contact you for more information within this period. In extreme situations, the company can hire a loss adjuster to investigate the incident. The adjuster will examine the property and ask you questions about its state, before and after damage. The adjuster’s report will then guide the insurer’s decision to accept or deny the claim.
If your claim is denied, your insurance company should send you a detailed report clearly explaining the reasons for the denial.
2. Compensation for Property Damage
Based on the information provided, your insurer makes compensation arrangements. This decision is based on the loss adjuster’s report and your past adherence to the insurer’s policies. The insurer determines the amount of compensation based on the degree of damage and the pre-established policy amount.
The insurer can decide to pay through a bank deposit or by cheque, depending on the claim. However, if you acquired your house through a mortgage, your insurer will wire a payment check directly to the mortgage company. Therefore, you should inform the company of the insurance claim early in the process.
3. Urgent Financial Need and Preventive Repairs
In the event of peril, you may have financial hardship due to the damage to your property. Your insurer should make advanced payments to help you overcome such difficulties. Additionally, any costs you have from making emergency repairs to prevent further damage should be reimbursed by your insurer.
Getting compensated for damage to your home can be quite a headache. Working with a local independent insurance agency can help you avoid this headache. An independent insurance agent represents you and does not work for any insurance company.
Vargas & Vargas Insurance is a premier local independent insurance agency that solely serves your interests and not those of your insurers. At Vargas & Vargas, you will get custom and affordable insurance coverage for your specific needs and have all of your insurance questions answered. Contact us today to get started.
As a business owner in Dorchester, MA, you need to have commercial insurance for your business to cover specific liabilities. However, sometimes it is very challenging to understand the entire concept of commercial insurance, especially if this is not your area of specialization. Vargas & Vargas Insurance has realized that many business owners make grave mistakes when it comes to business insurance and offer some basics on this policy.
Why Commercial Insurance?
So, some business owners do not know why they need commercial insurance, and some of them ignore it entirely, only for them to regret it later after disaster strikes. It is essential to understand that commercial insurance protects your business and the investments you have made against disastrous events.
Having commercial insurance is necessary because it protects all the assets that your business owns. However, commercial insurance may also help you cover the different types of liabilities your business may cause to suppliers, customers, and other parties.
How Does It Work?
Generally, commercial insurance is an agreement that lasts for one year and can be renewed by either party. It involves paying an agreed amount of money to an insurance agency that will assume the liabilities and the damages that your business may experience during the year.
The amount of money paid to the insurance company typically depends on the properties at hand, possible risk exposure, and other possible requirements such as the number of customers and vendors associated with the organization.
Do You Need Commercial Insurance?
Before you start running your commercial organization in Dorchester, MA, you need to have your commercial insurance in place so that you can be ready from the first day of your operations. Vargas & Vargas Insurance will guide you in the process of getting the best commercial insurance to meet the needs of your business.
Preparing your car for spring helps to ensure it functions properly in the warmer weather. Spring cleaning not only allows you to remove all the dirt and snow debris, but the simple maintenance and checks that you do in the process can save your car from potential damage and save you money through your auto coverage. You can choose to clean your vehicle yourself or take it a professional. Here are tips for preparing your car for spring:
1. Wash Inside and Outside Your Car
Wash your car thoroughly and remove all the salt buildup and snow debris accumulated in the undercarriage. Removing the salt and buildup prevents rust and keeps your vehicle in good condition. Also clean the interior of the car, including the floor and mat.
2. Check Your Wipers
During winter, windshield wipers do a lot of work. Check and see if they are in good condition, then replace the blades if they are worn out. New wiper blades will give you better functionality and improved visibility as spring begins. Good visibility when driving is essential to reduce accidents.
3. Inspect Your Tires
Align and rotate each of your tires. Check the alignment and make sure the car is driving straight. Check the treads, as well. If you changed your tires to winter tires, you should switch back to all-season tires for better functionality in the spring.
4. Confirm Your Insurance
Check your insurance policy and make sure it sufficiently covers claims that are common in the season. For example, you can look at the comprehensive coverage and familiarize yourself with what it entails. You can also check with your insurance agent in case of any auto insurance benefits or discounts now available.
Transitioning from winter to spring requires proper preparation to ensure the safety and proper functionality of your vehicle. Whether preparing your car for spring is a DIY project or you choose to seek professional services, these tips will help your vehicle serve you better in spring. Vargas and Vargas is a premier local independent insurance company. We are here to answer all your insurance questions, so contact us today.
Accidents happen, and when they do, we need a companion to hold our hand through the devastating effects. Personal insurance provides compensation for any damages sustained in the aftermath of an accident. There are several ways you can get personal insurance. Whether you opt for secure coverage from insurance organizations or buy policies online, navigating the coverage and claim is easier with a trusted companion by your side. Independent insurance agents rise to the task. Here are some benefits of using an independent agent for your personal insurance.
1. Wider Choice of Insurers
Independent insurance agents represent multiple insurance companies, so they can obtain quotes from different insurers. Different insurers might have varying products and scope of coverage. When you have the help of an independent personal insurance agent, you can compare other insurers’ policies and choose one that suits your needs.
2. Licensed Professionals
Independent agents are legally obligated to be ethical. That’s why an independent agent needs to obtain a license before presenting any services to you. A licensed independent insurance agent is morally tied to act in your best interests. You can always verify the validity of an independent insurance agent by checking with the insurance department.
3. Personalized Services
You are likely to be one of the many individuals looking for personal insurance coverage. The niche is known to be crowded. When you choose an independent agent for your personal insurance, you can develop a close relationship. They will help you understand the different personal insurance covers and acquire a more personalized insurance cover.
4. Risk Assessment
Independent insurance agents are trained to assess risk. An independent insurance agent can help assess the situation and suggest an individualized cover. An agent will help you prioritize the risks and also help you determine which risks are insurable. With a background knowledge of your geographical area, an agent will help evaluate the potential risks and how to mitigate them.
5. Claims Assistance
Navigating the world of claims can be time-consuming. An independent insurance agent will help you file claims for any accidents that occur. In case of any event, you can contact an agent, and they will take it from there. Independent insurance agents act as your advocates when a risk occurs. The familiarity in handling personal insurance claim procedures makes the process smoother. Independent insurance agents will help you get reasonable compensation. With the help of an independent agent for your personal insurance, you can receive compensation in a shorter duration.
Vargas & 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 and also be here to answer all of your insurance questions. So contact us today.
Purchasing a home is one of the most exciting events in a family’s life. It is also a great time of confusion. So many pieces have to come together to turn a house into your new home. Having the right team throughout the home buying process is an important part of the puzzle. It’s common to think of realtors and mortgage brokers as part of your team, but did you know your local independent insurance agent can be a vital player, as well?
Resources
Independent insurance agents are not only in the community. They are an active part of the community. Because of this, they know the answers to most of those all-important questions when you’re purchasing a home. With knowledge of community services, neighborhoods, school systems, and referral partners, your insurance agent can be a great resource to help in your home purchase journey.
Guarding Against Surprises
You wouldn’t purchase your home without knowing how much the mortgage will be. You’ll also want to review your homeowners insurance in advance of your home purchase. This way, you can detect any obstacles like pre-existing or current home damage, which may affect your insurance, before purchase. Your insurance agent will review all the features of your future home to make sure you are properly covered. The replacement cost of your home versus its market value can be very confusing. Your insurance agent will walk you through the difference and explain your coverage in detail. This is also a great time to re-evaluate all of your insurance in consideration of your changing needs.
Ease of Home Purchase
Your insurance premium is often escrowed, meaning it is included as a part of your mortgage payment. Your insurance agent can work directly with your lender to deliver all insurance documents before your closing. This takes one more thing off of your hands and ensures your coverage begins immediately.
A home is an important purchase. Vargas & Vargas Insurance, a premier local independent insurance agency, will customize your homeowners insurance, answer all of your questions, and be there for you on the journey to your dream home. Contact us today to learn more.
About a month before your home insurance is due for renewal you will receive a copy of your policy details in the mail or maybe in an email. The front page of that is your Homeowners Policy Declaration. It includes your policy number, the dates your policy is in effect, your agent’s name, and the address of the property being insured. It also includes your liability limits, deductibles, and any additional coverages you have. At Vargas & Vargas Insurance in Dorchester, MA, our staff is focused on making sure our customers have a positive insurance experience. We put our customer’s needs first.
When your policy renews
When you get this notice from your insurer, it is the perfect time to review all the figures. Look at the amount of coverage you have for the replacement of your home, contents, outbuildings, living expenses, and liability coverage. Do they make sense? Has the cost of your policy gone up substantially? Is there a legitimate reason for the increase? What is your deductible? After you have looked it over you may want to have a discussion with your insurance agent.
When you add a significant amount of additional content
If you receive or purchase expensive jewelry, your policy may not cover it. Most traditional home policies have a low threshold for jewelry and other expensive items. You can add a rider to your policy to cover these items.
You make upgrades
If you make changes to your home: finish the basement or attic, add an extension or upgrade a kitchen the value of your home may have increased. If you replace your roof or add a home security system, you may be eligible for a discount. Make sure your agent knows all the latest information about your home.
Contact Vargas & Vargas Insurance in Dorchester, MA with your home insurance needs.
Every business owner needs multiple insurance covers. From health policies to general liability business insurance, entrepreneurs must protect themselves, their employees, and customers from unforeseen accidents. Using an independent agent for business insurance comes with many benefits that direct writers cannot offer.
1. Better Premium Deals
Independent insurance agents are usually knowledgeable about business insurance policies in their states. This, combined with their networks of insurers, makes them a valuable asset to your business. They can help you get the best premium deals at discounted prices. Since they are bound by law to serve your interests, you are assured that they will give you a variety of options that offer you maximum protection at lower costs.
2. Tailored Risk Assessment
Most independent insurance agents are trained risk assessment and management experts. They can therefore assess the potential areas of liability in your business and correctly advise you on the premiums that can protect you. They are also familiar with the latest business liability regulations. As such, they can guide you on any risks that need to be covered in your business. Direct writers may not offer such tailored risk assessment services, leaving your business inadequately protected.
3. Multiple Coverage Packages
Getting insurance policies from multiple insurers can be quite a hassle. Unfortunately, most direct writers specialize in specific policies. This is unlike independent agents, who often provide a one-stop-shop for all your business insurance needs. When you combine multiple premium coverages, you will have more room to negotiate the best rates for your entire insurance package.
4. Excellent Customer Service
Once you purchase your insurance from a direct writer online, you might never hear from them again. When you choose an independent agent for business insurance, on the other hand, your agent is just a call away. They will keep in touch and offer you after-sales customer care services by continually assessing your business whenever necessary. They will also inform you of the latest premiums that you might need, giving you room to revise your business insurance cover as you deem fit.
5. Hassle-Free Claims
Nobody likes the hassles of filing for claims because of the paperwork and long procedures involved. An independent insurance agent will save you from all these hassles by following up on your claims and handling the entire process on your behalf. They will also guide you on the correct claim estimates based on your cover.
Using an independent agent for business insurance can save you and your business a lot of money, time, and stress. They can handle all your insurance needs and give you room to focus on more productive activities.
If you are looking for licensed and experienced insurance experts who will place your interest before those of insurance companies, then contact Vargas & Vargas Insurance. Our premier local independent insurance agency has independent insurance agents who will customize your insurance coverage to your specific needs at the right price and answer all your insurance questions. Contact us today to get the best insurance premiums for your business.
Downsizing requires careful consideration of whether you need various features of your home or whether they can be eliminated. A home office is a full room that many people who are downsizing to a smaller home can eliminate. This can have a positive impact on your home insurance policy.
Consider Your Lifestyle
Deciding whether to include an office in a downsized home or not is not a one-size-fits-all situation. It can be tempting to make this decision solely based on space or insurance implications, especially when you are being intentional about downsizing. But it is also important to consider how keeping or creating a home office fits into your current career, educational, or recreational goals.
The past year has led to a drastic shift in many employees’ interest in working from home. Other people have begun to see the benefits of taking courses from home, both for credit and for fun. Online side gigs have also gained popularity.
Suppose you are currently participating in any of these activities or are considering doing so in the future. In that case, the benefits of having a dedicated home office space for working and learning may outweigh the cost of having an extra room. However, if you have no interest in working from home or are downsizing because you are retired or your children have moved out of your home, choosing a smaller home that does not include an office space is often the best option.
Insurance Implications of an Office in a Downsized Home
A home office is, of course, an extra room that needs to be insured. At best, it will add additional square footage to your insurance policy. In addition, your homeowners insurance may not fully cover your office in your downsized home. Why? It blurs the line between typical issues that all homeowners could experience and business-related expenses that are more complex. You will likely need to purchase an additional insurance policy if you are working from home. This is even more important if you are running your own business. Some employers may also require additional insurance coverage for remote employees that may not be fully covered by their regular workplace insurance policy.
A home office can be beneficial under the right circumstances. But choosing a home that does not include one can benefit your insurance policy. At Vargas & Vargas, we are the premier local independent insurance agency. Contact us today with any questions you have or to learn more about customizing your insurance policy to meet your pricing needs.
Americans spent a record-breaking $20 billion on Valentine’s Day in 2020. This year, even in the wake of a pandemic, retail experts predict Valentine’s retail sales numbers around $27 billion! More specifically, Americans will buy anywhere from $5 to $10 billion in diamonds this year. That’s a lot of bling! At Vargas & Vargas Insurance, we know our customers wonder if jewelry should be insured. Like everything else related to insurance, the answer is: it’s complicated. If you think you should insure your diamonds, we recommend speaking to an agent about your unique needs.
Homeowners Insurance and Renters Insurance Have Strict Limits on Jewelry
Before you start looking into policies, know that a property policy will usually only cover a few thousand dollars of jewelry.
Depending on the insurer you choose, most homeowners and renters insurance policies will have a low limit for jewelry. You can add individual items — like that $10,000 bridal set — to your property policy by contacting your insurance agent. Usually, they’ll need to see some photos and an appraisal to “schedule” the jewelry onto your policy, and your premium will increase.
Your agent can schedule other expensive items on a policy, too. The Massachusetts Division of Insurance says artwork, fine silverware, and expensive furs are also good candidates for extra insurance.
On Appraisals and Valuations
The purpose of insurance is to protect a financial investment and to make you financially whole after a loss. Jewelry is sold with a very high markup. So your insurer will need to see some documents to prove the value of your gems.
The most respected certificates and reports come from the Gemological Institute of America (GIA), but a professional appraiser can provide them, too. Other certificates, reports, or receipts from the seller might not be enough to prove the value of your diamonds.
Vargas & Vargas Insurance is proud to be your premier local independent insurance agency. We work for our clients, not the insurance company. We’re ready to customize your property insurance to fit your needs and budget. Remember, if you have deeper questions about how to insure your diamonds, then contact a licensed agent today.
You may want to downsize from your primary residence to a smaller home that suits your current stage in life. Choosing a house that fits your lifestyle based on where you are in life is also known as rightsizing. You can downsize or rightsize for various reasons, including reducing expenses like housing costs proportional to the size of the home you live in. Some of these costs to consider include:
• Insurance
• Utility costs
• Furniture
• Home maintenance
A smaller house can significantly reduce your expenses and impact your insurance coverage. So, if you are wondering how downsizing or rightsizing will impact your insurance coverage, read on.
1. Home Office Insurance Implications
A home office can alter your home insurance coverage and increase the cost. The insurance company may consider additional people who come to your house as an insurance risk, increasing your home insurance cost. If you plan to rightsize and cut costs, a downsized home should not have a home office.
2. Downsize Number of Cars
When downsizing the number of cars you have, you save on insurance costs. The insurance quotes for your family cars include the car model and how often you drive it.
If you own a sports car that’s expensive, it will cost more to insure compared to an SUV or a minivan. If you have two vehicles, you can eliminate the second one if that’s possible, depending on your family transport needs. This will save you money, especially on car insurance quotes.
3. Personal Auto Insurance Policy for Your Child
If your last child moves out, it will be wise to make sure the child has personal auto insurance coverage under their name. If they don’t have this policy, you might have to pay for expenses, or they will be expected to pay directly. Most auto insurance policies’ definitions of a family member require the family member to be part of your household.
4. Consider a Smaller House Without a Pool
A pool can be a liability, especially if you want to cut costs. As a homeowner, you will be liable for anyone that uses your pool with or without your permission. You may have to incur expenses up to 100,000 dollars in case of a pool accident. You can avoid these costs by not having a pool in your smaller house.
5. Smaller House Versus a Condo
Depending on your needs, you can choose to downsize to a condo or a smaller house. Condos are typically cheaper to maintain, considering that the condo association is responsible for the exterior walls, roof, and shared spaces. You will also not be thinking about landscaping.
Vargas & 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 when downsizing or resizing. Contact us today — we’re here to answer all your insurance questions.
You might wonder why you need classic car insurance when your other vehicles carry a standard auto insurance policy from Vargas & Vargas Insurance. Your classic car requires a different level of insurance coverage than your other vehicles.
You could wreck your 2020 Chrysler or Dodge in Dorchester, MA, pick up a check from the insurance company, and purchase a new 2020 Chrysler or Dodge from the car lot. That is not the case with a classic car.
If you wreck a completely restored 1963 candy apple red Corvette Stingray, you cannot drive to the Chevy lot and buy a new one. You would have a hard time replacing it.
You also would receive a different amount of money for the new car and the classic car. With auto insurance, your payout would come in the form of a depreciated value. You would get the Blue Book value of your car or truck on the day the accident occurred. You would not want this with a classic car. The depreciated value of a 1963 Corvette is not the same thing as the actual value of the same car when completely restored to pristine condition.
Classic car insurance pays actual value or agreed-upon value. That means you either obtain the actual cost of purchasing another mint 1963 Corvette or you get a check for the value of the vehicle as you and your insurance company agreed to it when you negotiated the insurance policy.
With classic car insurance, you do not get to drive your vehicle as often. The policy typically limits you to about 1,000 miles per year. You can show it in car shows and drive it in parades.
Choosing classic car insurance saves you money if your vehicle ever incurs damage. Contact Vargas and Vargas Insurance of Dorchester, MA to learn more about classic car insurance.
If you are shopping for condo insurance, there are some things that you will need to understand to ensure that you get the right coverage for your specific needs. Knowing what the condo association insurance already covers is an excellent place to start. This will enable you to get condo insurance coverage that fills the gaps.
Condo association insurance covers mostly common areas within the building like roofs and shared spaces like walkways, but check with your condominium association for specifics on what they cover. Most master policies provide coverage for these areas:
• All-in policy
• Bare wall policy
• Original specification policy
Most contracts of the association will cover exterior damages of the building, and the condo owner will be responsible for managing the interior. With this information, you can assess your specific needs before getting condo insurance to fill the gaps. Here is a guide to what you need to look for as you shop:
1. Look for the Best Rates
If you have a car, you can get a discount of between 5% and 15% for a package that includes auto and condo insurance.
2. Consider the Features That You Need
Assess your needs and choose the policy that fits. Typically, condo insurance coverage will include coverage for:
• Damage to personal property
• Personal liability (for you and your family)
• Loss assessment
• Building property and fixtures
• Loss of use
You can also find additional features like identity theft and many more that might be specific to you as you start shopping for condo insurance.
3. Choose the Best Customer Service
You will need to get in touch with your insurance at a time when you are stressed. This can be due to theft or a disaster. Good customer service will be beneficial at that time. Look out for a company with a good customer service reputation.
Shopping for Condo Insurance Is Easy With Vargas & Vargas
Vargas & 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, and our team is here to answer all of your insurance questions. Contact us today to get started.
Commercial insurance policies are complicated. At Vargas & Vargas, we know small business owners are focused on running their businesses. You don’t always have the time to pour over commercial insurance policies in detail. Today, we will make a few key points that you should consider as we move forward in 2021.
Review the Most Important Points of Your Commercial Insurance Policy
The declarations page (dec page) of your commercial insurance policy is usually the first page. It contains a ton of essential information.
Before getting into the minutia, check that all the information on your dec page is correct:
A correct property address is vital for claims.
Ensure the contact names and business owner names are right. Only the named insured can make changes to a policy.
Be sure the contact phone numbers and email addresses on your policy are correct, too.
Then, consider your coverages. In the wake of COVID-19, we know many small businesses have evolved.
Has Your Business Changed Much in 2020? If So, Talk to an Agent
From social distancing and healthcare concerns that limit foot traffic to increased online shopping and curbside meals, we know the business landscape has changed in Massachusetts. You might need to adjust your insurance if:
You have much lower sales numbers than predicted in 2019 — maybe you’re stocking less inventory or hosting fewer customers. Either way, you might be able to reduce your premium because your risks are lower.
You’ve sent your workforce home.
You’ve scaled back operations.
In short, if you made any significant changes to your business in 2020, it’s time to talk to an insurance agent.
If You’re Concerned About Civil Unrest
Commercial insurance policies usually cover civil unrest, riots, and malicious mischief. But if you’re worried about political turmoil in your neighborhood, then check your policy to be sure.
What if you’ve closed up the shop, but you’re still operating out of your home? Know that your homeowner’s insurance policy won’t cover much related to your business. You might still need a business owner’s policy.
Vargas & Vargas Insurance is proud to be your premier local independent insurance agency. We work for our clients, not the insurance company. We’re ready to customize your commercial insurance to your unique needs at the right price, and we’re here to answer your questions. Remember, if you have deeper questions about commercial insurance in Massachusetts or need help with a Business Owners Policy (BOP), contact a licensed agent today.
Condo insurance is property insurance for condo owners. It’s designed to protect the condo contents and repair the unit in instances of fire or burglary. Condo insurance provides liability coverage for the condo owner, too. Today, we’ll take a closer look at Massachusetts condo insurance. We’ll explore the coverages and perils that policies can insure against — and highlight some gaps, too. Remember, if you have deeper questions about condo insurance, talk to a licensed insurance agent at Vargas & Vargas Insurance today!
What’s Covered by Condo Insurance in Massachusetts?
Condo insurance policies in Massachusetts are similar to homeowners insurance, with a few key differences. The basic idea is the same — it’s an insurance policy that protects the condo owner from loss from perils like:
Fire
Wind
Hail
Lightning
Burglary or theft
Civil riot
Malicious mischief
In a nutshell, if your condo burns down or gets burglarized, then your insurance company will reimburse you for your belongings. Remember, condo insurance will only pay up to the policy limits (after the policyholder pays a deductible). It’s vital to know whether your condo insurance policy will pay you the Actual Cash Value (ACV) of your belongings or Replacement Cost (RC).
Liability Coverage
“Liability” means responsibility. In Massachusetts, most condo insurance policies will include liability coverage. If a visitor stumbles in your home and breaks their ankle, this insurance covers you.
What’s NOT Covered by Condo Insurance?
Condo owners don’t have an interest in the outer property. Your condo insurance policy won’t cover the condo building’s exterior, separate structures and outbuildings, fences, trees, and landscaping.
Also, know that certain luxury items in your condo might not be covered. If you own an $18,000 painting by Pablo Picasso or a luxury strand of pearls, you’ll need to have them specifically added to your condo insurance policy. In addition, a standard condo policy in Massachusetts doesn’t cover some perils. Floods, for instance, require a separate flood policy.
Vargas & Vargas Insurance is proud to be your premier local independent insurance agency. We work for our clients, not the insurance company. We’re ready to customize your condo insurance to your unique needs at the right price, and we’re here to answer your insurance questions. Contact us today.
