3 Recommended Commercial Insurance Changes for Companies Switching to Remote Work

Posted on August 18, 2020July 31, 2020 by cvargas

An increasing number of businesses are considering a permanent shift to remote work for their employees. The change is taking place in different industries, especially the technology industry. When a business switches to remote work, its potential risks and liabilities change. If your small business is considering changing to a remote workforce as a long-term strategy, start with a review of your business’s commercial insurance policies. This will help you identify potential gaps and changes in coverage that need to be addressed.

woman on a video conference while working from home

Some of the insurance implications that may arise under conventional insurance policies include:

1. Employers’ Liability and General Insurance

Coverage for your employees’ potential injuries depends on the categorization, where the injury took place, and the activity undertaken at the time of injury. Your business needs to ensure that the definition of covered employees under the employers’ liability insurance includes all employees to which the company may be found liable. Also, you need to ensure that the coverage consists of all places where your workers are located.

2. Property Insurance

The COVID-19 pandemic has led to an increased focus on different aspects of property insurance. While transitioning to a remote workforce may create less loss as a result of property damage, you may have more devices and equipment spread across different locations. Therefore, you need to make sure that property being used by workers in remote locations is insured.

3. Cyber Insurance

The switch to work remotely can make your business more susceptible to schemes of social engineering and hacks. When your employees work from home, they adapt to different modes of communication and may create new vulnerabilities in your system. But you need to do more than allow your IT personnel to increase security in remote working environments. Consider adding more coverage, such as cyber insurance, to protect your business’s data, systems, and hardware. Your business needs to make sure the coverage matches the risks.

For more assistance choosing the right commercial insurance policies during changes to your business, contact Vargas & Vargas Insurance today. We’re here to help.

What Should You Do If Your Term Life Insurance Policy Is About to End?

Posted on August 11, 2020August 4, 2020 by cvargas

Do you have a term life insurance policy? A term life insurance policy is for a specific period of time. It will only provide coverage for a set period of time, such as 10, 15, or 25 years. During this time, if your policy is active, and you die, the policy will pay out benefits. But if you have a 10-year term life insurance and you die in the 11th year, unfortunately, the policy will not pay your beneficiaries.

older couple discussing what to do about their term life insurance policy

If you have term life insurance and it is coming to the end of the policy, you can do a number of things. These include:

Convert the policy.
Renew the policy.
Buy a new policy.
Let the policy end.

1. Convert Your Term Life Insurance

If you have a term life insurance policy, you may have the option to convert the policy to universal or whole insurance. Depending upon the term life insurance that you have, you may have the entire policy period to convert or just a specific time period.

For example, if you have a 10-year policy, you may have ten years to convert to another type of life insurance policy. On the other hand, your policy may only allow you to convert in the first five years of the policy. Check the terms of your policy or reach out to your insurance company.

The key advantage of converting to a whole or universal life insurance policy is that you often do not have to go through another health check for your policy. The policy will convert and not use your current health condition for underwriting the policy. This is a great feature if you have developed health conditions since you bought the original policy.

What Is Whole or Universal Life Insurance?

Before we continue, it’s important to know what whole and universal life insurance are. Whole life insurance has consistent premiums and a guaranteed cased value accumulation. Universal policies have flexible premiums and death benefits. You can borrow against the cash value of either policy, and these are considered permanent life insurance. The coverage doesn’t end when you stop making premium payments — it will extend further into the future.

2. Renew the Policy

Some term policies allow for renewing the policy. This is known as a renewal option or privilege. It allows the policy owner the right to renew their term life insurance policy for an additional time period. However, if you renew the policy by extending your current policy’s coverage, the amount you pay may increase. You can renew even if your health has changed, but you may only be able to renew the policy until a certain age.

3. Buy a New Policy

If your health hasn’t changed, you can also buy a new policy. At this point, you can buy a term, whole, or universal life insurance policy. You will have to go through the health check again, and you may be limited by a two-year suicide clause.

4. Let the Policy End

A fourth option is to just let the policy end. Though this leaves you with no life insurance, it is an option.

If your term life insurance policy is ending or you would like to make changes to it, contact us or give us a call! The team at Vargas & Vargas Insurance can help you figure out what is best for you and your situation.

What to Do During and After a Hurricane

Posted on August 8, 2020August 7, 2020 by cvargas

Hurricanes can pose a serious hazard for people and properties in the Boston, Massachusetts, area. Floods, heavy winds, and other severe weather factors can cause damage quickly. Read this short guide about how to stay safe and protect your property both during and after the next hurricane.

What to Do During a Hurricane

During a hurricane, it is important to avoid going outdoors or driving because the winds and flooding can be dangerous. If you must be out in the storm, then it is important to:

NOT drive around road barriers
NOT walk through flowing water
NOT drive through flooded roads

Also, continue monitoring the media for any emergency information. Look for credible emergency information shared by the Massachusetts Emergency Management Agency (MEMA) and other government agencies. Also, you need to follow instructions given by the public safety officials.

If directed to evacuate, you need to do so immediately, and take only your essential items and any pets, if possible. Given that conditions change fast, you need to be ready for evacuation to different places as directed and if necessary.

What to Do After a Hurricane Has Passed

After a hurricane has passed and you had evacuated, return home if authorities say it is safe to do so. Continue to listen to news reports to know if the water supply is safe. Before local authorities declare your water supply safe, you need to boil the water before drinking or using it for food preparation.

As soon as it’s safely possible, check your home for any signs of damage. While checking your home, you need to:

Repair leaching systems and damaged septic tanks to minimize potential health risks.
Hire a qualified electrician to assess any damages to electrical systems.
Have a professional check your wells for contamination.
If you suspect there is a gas leak, go outdoors immediately and contact a licensed professional to check it out.
In case your home or property is damaged, document the damage by taking videos and photos and contact your insurance company.

Also, report any power outages to your utility company. If you’re waiting for the power to return, be careful to only use grills and generators outside because their fumes contain dangerous gases.

Try to avoid entering floodwaters in and around your property. Seek the services of a professional cleaning and repair company to clean and disinfect your home. Check on neighbors and friends, especially the elderly and those who live alone.

At Vargas & Vargas Insurance, we’re here to help you protect your home, property, and family. Call us today to learn more about hurricane-related coverage, flood insurance, and safety tips to help you get through the storm.

3 Things to Consider When Choosing Between Whole and Universal Life Insurance

Posted on August 4, 2020July 8, 2020 by cvargas

family with a second expected child in their kitchen

Whole life and universal life insurance policies have similarities and important distinctions. Both are types of permanent life insurance, which means they provide coverage for your entire life as long as premium obligations are met (which is different from term insurance). Also, you can build cash value in either type of policy. Here’s what you need to consider to choose the coverage that’s the right fit for you.

1. Your Budget

Would fixed premiums or adjustable ones be a better match for your budget needs? Whole life insurance has fixed premiums. After you pay the initial premium on a universal life policy, you decide how often and how much to pay your premiums as long as you meet the policy’s minimums.

2. Your Risk Tolerance

Your investment in a whole life policy has low risk. The cash value accrues interest at the rate set by your insurer. Some whole life policies are eligible for dividends. You can choose to reinvest your dividends in the cash value or to have them sent to you. Dividends may also be put toward premium payments.

Selecting universal life, on the other hand, requires a higher risk tolerance. The rate of return on the policy’s cash value is not guaranteed. Rather, returns go up or down with market conditions. Some universal life policies are linked to the performance of a specific index like the Nasdaq 100.

3. The Needs of Your Loved Ones

Since whole life provides a fixed death benefit, it’s easier to plan for the future of loved ones who depend on your support. Fixed benefits may be particularly helpful if your loved ones include an aging relative, a child with special needs, or anyone else who won’t be able to develop their own means of support.

Universal life allows you to pick between a fixed death benefit and a benefit you can adjust up or down. This feature is beneficial if your personal circumstances change. For example, a married yet childless adult may initially choose a smaller benefit since it’s likely that only one person — the spouse — depends on the insured’s income. Should this couple have a baby, the insured person may want to increase the death benefit because more people rely on the insured person for support.

Your local independent insurance agent can answer questions and help you choose the right type of policy for you and your loved ones. Contact Vargas & Vargas Insurance today for friendly, helpful service.

Let’s Talk About Flood Insurance

Posted on July 31, 2020August 2, 2020 by agentinsure

For Massachusetts property owners looking to protect their investment, Dorchester, Massachusetts-based Vargas & Vargas Insurance is standing by to have a conversation with you about your flood protection insurance options. It is easy to avoid thinking about such unpleasantries with the thought that, “those things happen to other people,” but the reality is that that is not necessarily true. If you have questions about the state of your flood protection, our team of dedicated and licensed insurance agents are looking forward to having a conversation about your needs.

Flood Insurance Requirements in Massachusetts

Homebuyers searching for mortgage loans might be surprised to find that their lenders mandate that they purchase flood insurance as a condition of their loan acceptance. Indeed, as an example, Dorchester, MA residents risk flooding from both coastal flooding and rising waters from the Neponset River, so lenders will likely call for a flood policy in addition to your regular home insurance requirements. Working with one of our agents, we can write a policy that will not only keep your lenders at bay but will also protect you when Mother Nature begins stirring during storm season. Let’s talk about flood insurance and how it can give you and your family peace of mind should the worst occur.

Contact Our Team at Vargas & Vargas Insurance

If you need to look at the full range of protection afforded by having flood coverage from Vargas & Vargas Insurance, we welcome you to contact us at our Dorchester, MA for a conversation about how to best protect your property. Flooding can be a catastrophic event, but it does not have to wash your home down the street to devastate your life. Indeed, from moldy carpets to damaged furnishings in the aftermath of a flood-related incident.

What Is Personal Property Insurance?

Posted on July 28, 2020July 8, 2020 by cvargas

Personal property insurance is part of a home insurance policy. It provides coverage for the items in your home that are damaged or lost due to events, called named perils, such as fire, lightning, smoke, theft, and vandalism. In this article, we’ll discuss what types of coverage you can have and what you need to know as you shop for a policy.

couple playing on an insured piano in their home

Personal Property Types of Coverages

There are two types of personal property coverage:

Actual Cash Value (ACV)
Replacement cost value

An actual cash value policy is where an agreed-upon amount is decided upon when drafting your policy, which is the replacement value of the item minus depreciation. This amount is what you will be paid if the property is damaged or stolen. The insurance company will reimburse the agreed upon actual cash value in qualifying circumstances.

Replacement value is the second type of coverage. This coverage allows you to replace the item with another item of “replacement value.” In other words, it covers the cost of replacing the item with another similar item — a TV for another TV, for example. To get reimbursed by your insurance company with this method, you must generally buy a replacement item and submit your receipts to the insurance company for payment.

Personal Property When You Have a Home, Condo or Renter Insurance Policy

Personal property is covered differently depending upon whether you have traditional home insurance or condo or renter’s insurance. Home insurance will usually cover your personal property for an aggregate amount of up to 50% of the dwelling amount, or the amount your home is insured for. So if your home is insured for $240,000, your personal property will be insured for $120,000. If you’d like to have more insurance for your personal property, you may have the option to choose more than 50%, but with a higher premium.

Renter’s or condo insurance provides coverage amounts a bit differently. You will be able to pick the amount of insurance you want based on your estimate of coverage needed. This amount will depend upon what you own and how much it is worth. The coverage amounts vary by the insurance provider and by the specific type of policy offered.

More Valuable or Expensive Personal Property

If you own items that are more valuable, such as antiques or collectibles, you might invest in additional insurance for this coverage. You may hear terms such as floater, endorsement, or scheduled personal property. These actually refer to additional coverage that you may purchase to cover valuable items that might not be covered specifically under your home owner’s insurance coverage limits.

Contact us and let us help you with your personal property insurance needs. Vargas & Vargas Insurance provides friendly assistance with all of your coverage needs.

Condo Owners Need More Coverage Than the Master Policy

Posted on July 21, 2020July 8, 2020 by cvargas

Although most new condo owners are added to the property’s master policy upon purchase of the unit, the claim that this policy is all owners need is misleading. You may have been told that your unit’s coverage under the master policy prevents you from having to purchase separate coverage, but the policy is only meant to protect the property, not your personal possessions. If your condo is only covered under the master policy, now is a good time to purchase additional coverage that meets your needs.

couple researching condo insurance as they move into a new condo

What Is a Master Policy?

A master policy is the most basic type of insurance used by condo owners. It typically covers damage to the building itself, as well as common areas and liability for the condominium association. However, unlike other policies, your master policy does not cover your belongings or personal liability. The master policy provides the necessary protection for your condominium association. But only being covered under the master policy is not sufficient to protect yourself.

How Should I Cover My Condo?

Every condo owner’s coverage should be comprised of both the master policy and individual condo insurance. Condo insurance is similar to regular homeowners insurance, but it is designed to meet the unique needs of shared property ownership. It covers owners’ belongings and personal liability, as well as additional coverage for the building itself. Upgraded features may also be covered only by condo insurance, as many master policies only cover standard features.

What Happens If a Claim Is Made?

If a claim is made for something that happens within your unit, you will generally be defended by your private insurance company, not the master policy. Your insurance company will cover the necessary funds, minus the deductible. If you are only covered by the master policy, you will likely be responsible for the claim.

Your master policy should work together with private condo insurance to provide the best possible protection, rather than being considered the only insurance you need. In order to adequately protect yourself and your belongings, select a condo insurance policy that effectively fills in the gaps of your master policy. At Vargas & Vargas Insurance, we’re here to help you find the right coverage.

Stay Current on Massachusetts RMV Extensions and Reduced Insurance Rates

Posted on July 14, 2020July 8, 2020 by cvargas

The COVID-19 pandemic has impacted nearly every industry, and new changes continue to roll out. Drivers and car-related industries have experienced some unique challenges. What should you do if your vehicle registration is due? In Massachusetts, the Registry of Motor Vehicles (RMV) renewal deadlines are extended. Also, many car insurance companies are giving back money to their customers.

Registration and Renewal Extensions

The shutdown, phased reopening, and social distancing measures are necessary to ensure public safety and health during the COVID-19 crisis. But because of the changes and importance of staying home, the Massachusetts RMV has posted COVID-19 changes and updates regarding important registration and renewal dates. Driver’s license and permit renewals, which were due in March and April, were initially allotted a 60-day extension. However, the RMV has updated the timeline, with March-June renewal dates now extended until July 30, 2020. Plate registration and inspection sticker renewals that were initially due by May 31, 2020, are extended until July 31, 2020.

Customers are encouraged to use the RMV online services whenever possible. Residents who require in-person assistance at an RMV service center must reserve an appointment ahead of time. Reservations can be scheduled by phone or online.

Reduced Car Insurance Rates

The various social distancing measures have caused many people to spend more time at home. As people are commuting less, many auto insurance companies have stepped forward to offer reduced rates for customers. Many national and local insurance providers — including Allstate, Progressive, Geico, Plymouth Rock, Arbella Insurance, Vermont Mutual, MAPFRE, and many others — are participating in relief options for premiums during the current pandemic.

As the COVID-19 pandemic continues, the auto and insurance industries continue to provide customers with valuable updates and changes to accommodate customer needs during this challenging time. Contact us today to stay on top of your coverage needs and adapt to ongoing changes. Vargas & Vargas Insurance can help you stay informed on how COVID-19 is impacting vehicle registrations and auto insurance policies.

What You Need to Know About Phase Two of Massachusetts Reopening

Posted on July 7, 2020July 6, 2020 by cvargas

The state of Massachusetts is reopening in phases. On Monday, June 8, Phase Two of the plan was initiated. With the peak of COVID-19 on the decline in the state, Phase Two for many parts of the economy and communities has had many businesses reopening their doors for the first time in months. Below are what residents can expect in the next couple of weeks.

woman opening her store during Phase 2 of Massachusetts reopening

Retail Stores and Restaurants

At the beginning of Phase Two, restaurants with outdoor dining options were able to reopen to patrons. All dining tables are mandated to be six feet apart, allowing for the required social distancing requirements.

Retail stores also can begin to open their doors, but capacity limits will be in place. In addition to staff members, only eight customers will be permitted in the building per 1,000 square feet. This allowance keeps the store at 40 percent or lower occupancy at all times.

Healthcare Facilities

With non-essential services postponed during the pandemic, many healthcare facilities were closed indefinitely. During Phase Two, many of these facilities can start to reopen and resume standard services. Patients in the hospital will be permitted one visitor, which is up from the no visitor policy in Phase One. Non-essential and cosmetic surgeries will continue to be delayed during Phase Two with plans to resume in Phase Three.

Child Care Services

If certain distancing requirements are met for child care and summer camps, they may be allowed to reopen during Phase Two.

Lodging and Personal Services

All services that do not require close contact between employees and customers are able to reopen under the same social distancing requirements of six feet between individuals. In terms of lodging, hotels can reopen to guests. However, community areas such as meeting rooms and pools will not be allowed to open.

Outdoor Recreation

As long as sporting events can be practiced and played with social distancing regulations in place, they will be permitted. All adult sports games will be moved to outdoor facilities during this phase in order for them to continue. Local and state parks will continue reopening for public use over the next couple of weeks.

These changes are expected to continue throughout Phase Two, leading into the next phases as cases of the virus continue to decline. The importance of Phase Two is to allow Massachusetts residents the ability to acclimate back into society safely and cautiously.

At Vargas & Vargas Insurance, we’re here to help you feel safe at home and as you work. Contact Vargas & Vargas Insurance today to maintain your insurance needs.

Happy “Interdependence” Day 2020

Posted on July 4, 2020 by cvargas

This Fourth of July holiday will be very different this year. I have started calling this year’s Independence Day “Interdependence Day” because we need each other now more than ever!

This is the time when we enjoy spending time with family and friends, and maybe watch the sparkling fireworks. However, social distancing limits seats at the picnic table, if any at all, especially with the report of a new wave of COVID-19 cases.

We continue to believe our doctors and medical community will help us conquer this disease; however, with more than 10 million* confirmed cases of COVID-19 around the globe, this terrible fight is far from over. Meanwhile, the US economy appears to be turning a corner and better times may be ahead.

Voltaire said, “History never repeats itself. Man always does.” which means history may be a guide for what may happen next.

While we’ve faced several health, social, and economic crises this year, Fourth of July is a good time to think about how lucky we are to live in this great country and to remember the resilience and perseverance we’ve demonstrated over the past 244 years. History has shown us that better times will come.

Thank you for allowing us to be your local independent insurance agent!

Best wishes for a happy and safe Fourth of July!!

Carlos

Vargas & Vargas Insurance

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