Should I Bundle My Insurance Policies?

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

Posted on February 13, 2023February 8, 2023 by cvargas

One way to save money in premiums is by bundling insurance policies together. This is when you use the same provider for all of your insurance needs. It’s kind of like getting a “buy in bulk” discount.

Most providers will offer discounts for bundling policies because it helps them make more money. Essentially, you’re giving insurance providers more business, and to show appreciation, many will have significant discounts.

However, there are times when bundling might not be the best option. This, of course, depends on your provider. In rare instances, bundling could actually cost you more in the long run.

This can depend on a lot of factors, and as I said, it’s not very common.

Why Consider Bundling Your Insurance?

Perhaps the most obvious benefit of bundling insurance is the cost savings. When combing things like home and auto insurance through a single provider, you could save instead of paying higher premiums to two different insurers.

Another element of bundling is the convenience factor. Instead of having two online portals or two completely different agents, everything is often handled from a single point of contact.

It’s simply much easier to manage overall. Especially if one insurer already has all of your needs covered and knows the ins and outs of your situation.

How Much Can Bundling Insurance Save You?

Every insurer is different. How much you save depends on your provider and how they calculate your rates. However, many of the most popular providers will offer anything from 6-23% by bundling insurance policies.

On average, you could possibly save around 14% of your premiums every year. Again, though, this depends greatly on the insurance company.

In any case, it’s worth finding out how much your insurer will discount by bundling. After all, there’s nothing wrong with asking, right?

Can You Bundle Policies Later?

Most insurers will allow you to bundle policies as time marches on. This means that if you buy homeowner’s insurance and then two years later decide to add automobile coverage, you still have access to discounts.

Remember what I said earlier; it’s all about giving the insurer more business.

There might be some who don’t offer the best discounts if any at all. In that case, I suggest calling around to see if you can find a better alternative.

What Happens if You Cancel One of the Policies?

Canceling one of your policies may wind up costing you more money. Obviously, without a “bundle” of different services, you’ll revert back to the normal annual premium.

Then again, this also depends on how many accounts you’ve bundled together. Some companies will bundle home, auto, and life insurance. If you cancel, say, the auto insurance, you might still get the discount since you have home and life insurance policies remaining.

You should contact your provider to find out more information about what you can bundle together.

Why It’s Important To Work With A Local Independent Insurance Broker

While it may be tempting to go with the big national insurance companies, working with a local independent insurance broker can save you money on your insurance. Here’s why:

1. As a local independent broker, we have access to a variety of insurance companies, so we can shop around and get you the best possible insurance rates.

2. Local independent broker, we know the ins and outs of the insurance market in our area, so we can help you find discounts and savings that you might not be aware of.

3. Bundling your insurance policies with a local independent brokercan often save you money. That’s because many insurers offer discounts for bundling multiple policies with the same insurance agency.

4. Working with a local independent broker gives you someone to talk to face-to-face about your coverage needs and concerns. You’re not just a number to us, so we’ll take the time to really understand your situation and find the best coverage for you.

Bundling Insurance Policies Can Save You Money

How much can you save by bundling policies? At Vargas & Vargas Insurance, we’ll help you answer that question by using our network of providers to find the best deals for you. Contact us today to see how much we can help you save by bundling your policies together.

It’s convenient, and it could result in saving quite a bit on your premiums.

How Your Credit Score Will Influence Home Insurance Rates

Posted on February 6, 2023January 31, 2023 by cvargas

There are many things that will affect how much you pay for home insurance. Of these, a credit score can make a big difference in how much you pay.

Much like using your credit to secure a loan or an account with most banks, your score will help insurers determine risks.

For this, they’ll use a “credit-based insurance” score, or CBI.

The Key Difference Between Credit-Based and FICO Score

Although both the CBI and FICO use the same data, the processing is a bit different. Insurers are using most of the data associated with your credit, but not all of it.

Unlike trying to apply for a line of credit, the CBI is essentially used from the perspective of property risks and management.

What Affects your Credit-Based Insurance Score?

Essentially, a lot of the same factors are at play when using a credit-based insurance score as everything else. As I said before, the biggest difference is what data is used when determining your rates.

So, what kind of things will affect your CBI?

Length of Credit History Affects Your Score

The longer you have a history of credit, the better. Unfortunately, this can hinder some of the younger people looking to buy a home and secure insurance.

This is why it’s important to start working on your credit as soon as you’re able.

Credit and Bank Accounts in Good Standing

The number of bank and credit accounts you have in good standing are great benefits toward your CBI and FICO scores. This tells insurers that you’re responsible and can manage your finances well.

In fact, a lot of people will hang on to bank accounts they don’t necessarily use often simply because of how long they’ve had it.

Zero Late Payments and Your Credit Score

Having no late payments on your account is another vastly important factor.

Now, this doesn’t mean that a few late payments here and there will result in an overwhelming poor score. But keep in mind, they will affect your insurance rates.

Overall Credit Usage

How many credit accounts do you have maxed out? The percentage of how much credit you have available for each account will weigh in on your CBI.

Try to pay down your credit as much as possible when applying for new accounts or when looking for new insurance.

Debtor Collection Issuance

Have you had debt collectors call you up in the last seven years? Having a debt collector against your credit score will impact virtually any type of account.

But keep in mind that every agent is different when figuring out your CBI. Having a debtor against your credit may not weigh too heavily, depending on the account.

Recent Multiple “Hard” Hits Affect Credit Score

Having several hard hits on your recent credit history will decrease your score. Mostly, this is because it throws up a red flag to issuers that you run the risk of over-extending your monthly finances.

In other words, don’t apply to every credit card company that comes your way right off the bat. Too many recent inquiries will sink your score quite quickly.

How is Your Credit Score for Insurance Rates?

A poor credit score can make it more difficult to buy properties, but it can also increase your home insurance premiums. At Vargas & Vargas Insurance, we’ll use our network to find the best policies for you. Contact us today to find out how we can help you, even if you have terrible credit.

You may wind up saving more than you thought.

How Much Will Your Location Impact Home Insurance Rates?

Posted on January 30, 2023January 23, 2023 by cvargas

Home insurance is not equal across the board. In fact, there are many, many factors that come into play when figuring your premiums. This includes how rates are affected by the location of the property.

This boils down to how much of a risk factor is associated with your home because of its physical location. And this goes beyond the base an insurer may use for calculations.

What Location Factors Affect Rates?

There are many aspects to consider when pricing out a home insurance policy. Today, we’re just looking at the most common locality issues that will adjust your rates.

While every insurance company is different, these are some of the most used elements for consideration.

State and City Make a Difference

Perhaps one of the biggest location factors for a lot of industries is that of state and city. Your zip code could say an awful lot about everything from insurance rates to groceries.

For instance, what you pay in Boston, Massachusetts, would be significantly different than in Williamstown, Massachusetts, for an identical home. That’s before other factors are even calculated.

Rates can also be adjusted for the location of the neighborhood itself. If your home is in a particularly dangerous area, rates could easily go up. This is because occurrences like vandalism, theft and other crime-related events are more likely to result in claims.

Proximity to Houses and Buildings

How close your home is to any other structure may result in higher insurance rates. This is because there is a greater risk to the property.

For instance, let’s say your home is very close to another. If that other house catches fire, your home is at a much higher risk of joining the blaze. And it’s not just other homes, as your rates may increase if any building is extremely close to your house.

Proximity to Fire Protection Services

In many instances, simply the location of a fire department may affect rates. This includes elements such as whether there is a nearby fire hydrant.

The bottom line is that the longer it takes departments to put out a fire, the more damage that is done. This results in a higher rate of claim, which then translates to higher premiums.

Weather Risks of Locations

Weather will also play a factor in home insurance rates, especially as you’ll have to add extra coverage for specific types of weather events.

For instance, those who live in a tornado-prone area are more likely to face tornadoes, while those closer to the west coast have more concerns about earthquakes. People who live in hail-prone areas that cause damage to vehicles, homes, and other property.

If the location of your home experiences specific weather patterns, you’ll be on the hook for more expensive policies.

As Location Will Affect Your Rates, Keep Discounts in Mind

Where your home is located will directly impact your home insurance premiums. However, there are also many ways you can secure discounts to save you on your annual insurance premium.

At Vargas & Vargas Insurance, we can help you find those discounts while accessing a network of providers to save you the most money possible. Contact us today to find out how we can assist with your insurance needs.

What Is Umbrella Insurance Policy, Do You Need It?

Posted on January 26, 2023March 4, 2023 by agentinsure

A personal umbrella policy provides additional liability protection beyond the liability limits that you now carry on your home, renters, or condo insurance and auto insurance. If you are sued and exhaust your existing liability coverage, the umbrella policy will take care of the remainder up to the limit you selected.

Furthermore, it covers legal costs while defending or settling a lawsuit. In certain situations it may even provide coverage not available in your original policies.

Carrying umbrella insurance makes you less stressed about the future.

Worrying about how a lawsuit down the road could destroy you financially is stressful. Purchasing umbrella insurance is the ideal way to avoid such stress.

Umbrella insurance provides a safety net and protects your finances from the uncertainties you face in the coming years.

Umbrella insurance allows you to participate in activities you love without the risk.

Umbrella insurance is particularly recommended for those who participate in certain activities. For example, umbrella insurance coverage is recommended for consumers who use recreational vehicles or coach children’s sporting activities.

Umbrella coverage is also recommended for those who serve on an organization’s board or participate in activities such as hunting.

With umbrella insurance, you can enjoy activities like these that may leave you open to financial risk without adequate coverage.

Umbrella insurance protects your hard-earned money.

It’s typically recommended that consumers carry enough umbrella insurance to cover the full value of their net worth. That’s because umbrella insurance protects all of the hard-earned money a consumer has saved up throughout their life.

Umbrella insurance protects the funds and assets you have worked hard to accumulate throughout your life.

What does it cost?

The good news is probably not as much as you think. Costs of personal liability umbrella policies range based on various factors such as how many properties you have, how many autos you have, your driver history, and your experience as a driver.

A $1 million policy may cost between $160 and $300 per year. As you increase policy limits beyond $1 million, the premium cost increases in smaller increments. For example, a $2 million policy might only cost 1.8 times the cost of the million dollars one, a $3 million dollar policy might cost 2.55 times the million dollar policy, and a $10 million dollar policy might cost 8.9 times the million dollar policy.

Your Local Independent Insurance Broker

At Vargas & Vargas Insurance we always have time for you, you can reach our team at 617-298-0655, we can help make sure that your financial future is properly insured. Give us a call to get a quote on an umbrella insurance policy!

How Homeowner’s Insurance Policies Can Be Incredibly Different

Posted on January 16, 2023January 20, 2023 by cvargas

Homeowner’s insurance helps to alleviate financial issues in the event of an emergency. However, not all insurance policies are the same across the board. There are a lot of things that are considered when setting up the policy. In fact, it’s quite possible that your premiums will be different from someone who lives across the street.

Even if your neighbors are using the same insurance provider.

Age of the Residence

One of the primary elements that will adjust your premiums is the age and condition of the home. If you have an older structure, there is a good chance you’ll pay more in premiums.

This is partly because of the increased risk involved in outdated materials and repairs. Things like plumbing, wiring, the condition of the foundation, and more can affect how much you’ll pay for your policy.

Perhaps one of the most important aspects is that of the roof. Leaks will easily cause an incredible amount of damage, especially if you don’t catch them in time.

Home Repairs and Costs

Repairs and rebuilds make up a significant portion of many insurance policies. And things like inflation will affect the costs of these repairs.

For instance, if the price of wood goes up, so will your homeowner’s insurance. This is because it becomes more expensive to pay for repairs or rebuilds if the home requires wood, which most will.

Generally speaking, higher-priced homes often have a higher premium due to the cost of repairs. For instance, it’s more expensive to replace French doors to a patio than a regular backdoor.

Preventative Measures and Upgrades

Did you know that installing some preventative measures may actually reduce your insurance policies?

Case in point, some insurers will provide as much as a 10% discount if you have a central station burglar and/or fire alarm installed. This is because these things help reduce the risk of theft and damages, which then saves the insurer money in future claims.

The discounts will vary from one insurer to another. But generally, most offer discounts in some form if you install preventative devices or by updating parts of the home.

For example, if you update your roof or install new electrical and heating systems, your home could go from a “standard” rating to one that is “preferred.” This can save additional money on your premiums.

Working from Home

Since 2020, the prospect of working from home exploded throughout the world. Unfortunately, homeowner’s insurance policies don’t ordinarily cover business expenses or losses.

This means that if you run your business or otherwise work from home, you’ll need additional coverage for anything you use. This could include products, computer equipment, and anything else you’ll need to perform your job.

The additional equipment will easily increase your premiums.

Bundling Insurance Policies

A lot of people will bundle their policies together to reduce the overall cost every month. This is when you have your homeowner’s, automobile, and even life insurance policies from a single provider.

It’s quite a common practice, really. Some providers will offer discounts if you use them for all of your insurance needs. And in many cases, you’d be hard-pressed to find a cheaper alternative by using a separate insurer for everything.

Insurance Policies are Different for Everyone

When it comes to homeowners insurance policies, there isn’t a one-size-fits-all answer. Every home and situation will differ greatly, especially if you decide to include additional coverage for certain valuables, especially if you plan to work from home.

At Vargas & Vargas Insurance, we’ll do our best to find you insurance policies that fit your needs. Contact us today to find out how we can help keep your home, and your property, protected in the event of a catastrophe.

Not all insurance policies are the same, and we can help you secure one that is ideal for your situation.

7 Ways to Protect Your Vehicle During the Winter

Posted on January 13, 2023January 13, 2023 by cvargas

Auto insurance can play a critical role during the winter months. From frozen and slippery roads to white-outs during a snowstorm, you want to have coverage in the event something happens.

However, insurance can only go so far. Your policy isn’t going to cover wear and tear or issues that happen from poor maintenance. While there are several ways you can winterize your car before it snows, what about during the middle of winter?

Let’s take a look at seven ways to help protect your car in the winter aside from proper insurance coverage.

1. Maintain the Battery During Winter Months

The colder months put quite a strain on vehicle batteries. First of all, low temperatures lead to less of an electrochemical reaction within the unit. This means the battery will perform worse during the winter.

It’s vital that you test your battery regularly and replace it before you find yourself stranded somewhere.

2. Keep Timely with Oil and Fluid Changes

Low temperatures cause liquids of all kinds to move slower. This means that any fluids that are dirty, contaminated, or at low levels will hurt the performance of your vehicle more so when it’s freezing outside.

Driving around in the winter while you’re several thousand miles past an oil change increases the strain on the motor.

3. Watch the Radiator and Hoses

Antifreeze is a crucial element for many cars on the road today. And if you’re levels are low or contain more water than actual antifreeze, your radiator and hoses can freeze up.

Frozen lines can lead to splitting, which then results in the engine overheating.

4. Make Sure Belts Are Not Worn

The last thing you want to experience is a belt snapping while driving on the freeway during a snowstorm. Never underestimate how much wear and tear your belts go through on any given day.

Be aware of any kind of fraying or worn-out sections of the belts that keep the motor turning. Just make sure your car isn’t running before you check them.

5. Keep an Eye on the Tire Tread in Winter

Snow, slush, and mud are common road hazards during winter months. You want to make sure your tire tread is apt to take on what nature throws your way.

This is one of the biggest reasons why many people have a separate set of snow tires available for the winter months.

6. Check Your Bulbs and Replace if Needed

Bulbs for your car are usually not that expensive. And depending on the make and model of your vehicle, they are very easy to replace. Make sure your headlights and brake lights are visible to everyone during a storm.

Also, pay close attention to any condensation within the bulb housing. If the bulbs are getting wet, you’ll need to find the leak and seal it before your new bulbs blow out.

7. Use a Car Cover

Car covers, while a bit inconvenient to put on and off in the winter, can save you a lot of trouble. They protect the car from a plethora of weather types. Not to mention some may even alleviate frost buildup on the windshield.

You can find a lot of car covers for less than $100, and they’ll probably save you more than that throughout the year in maintenance expenses. Especially if you spend a lot of money keeping the vehicle clean.

Car covers are a great option if you don’t have a garage.

Winter Months Can Wreak Havoc on Autos

Depending on where you live, the winter months are some of the most strenuous for an automobile. And if you break down on the side of a snowy freeway, it’ll be incredibly strenuous for you.

In the event something does happen, though, you want to make sure you’re properly covered. At Vargas & Vargas Insurance, we’ll help you find the best policies for your auto regardless of the weather. Contact us today to see how we can help you save money while keeping your auto covered during the coldest months of the year.

New Mortgage Guidelines Could Save Money On Your Flood Insurance?

Posted on December 27, 2022December 23, 2022 by cvargas

If you are purchasing (or have purchased) a home in a flood zone, you need to purchase a flood insurance policy. And if your mortgage was an FHA, VA, or USDA loan, and your property is in a flood zone, in the past, you could not purchase your flood insurance from a private flood insurance company. . However, recent changes made to HUD may save you a great deal and may help you qualify for a larger mortgage.

Flood Insurance and FHA-VA and USDA Mortgages

Most standard home insurance policies will provide coverage that will help you with flooding caused by something like a burst pipe, a furnace, or hot water heater that bursts, and the water causes damage to your home. However, this does not include the damages caused by Mother Nature herself.

For example, damages caused by heavy rains, rising rivers, the melting of snow or hurricanes, or other types of flooding caused by a natural disaster aren’t often covered. At least in a standard policy.

Recent conditions from HUD INCREASES FLOOD INSURANCE OPTIONS FOR HOMEOWNERS WITH FHA MORTGAGES LIVING IN SPECIAL FLOOD AREAS.

The upside is that HUD is expanding flood insurance choices for individuals and families with FHA-insured loans. In the past, the National Flood Insurance Program was the only option for FHA-insured mortgages. As of December 21, 2022, however, private insurers are now available as an option.

This is to help keep people protected from high costs while addressing damages caused by climate change.

New Homes and Special Flood Hazard Areas Insurance

According to HUD 4000.1, if any portion of a home is in an SFHA (Special Flood Hazard Area), the home is not eligible for FHA mortgage insurance. This includes proposed or new constructs.

However, there are a few exceptions, such as the lender acquiring a FEMA Letter of Map Amendment or a Letter of Map Revision showing the property is removed from said area.

Another exception is if the lender acquires a FEMA National Flood Insurance Program Elevation Certificate. This is FEMA Form 81-31 and must be prepared by a licensed surveyor or engineer.

What About Existing Structures?

New homes are not the only properties to adhere to flood insurance requirements. Though, the terms for existing properties within an SFHA are often shorter than when building a completely new home.

A property does not qualify for the FHA-insured mortgage if:

it is in a Special Flood Zone Area
it is located in a coastal area and the National Flood Insurance Program is unavailable.
the home is located in SFHA Zone A.
it is located in Zone V.

You must maintain flood insurance coverage for the amount remaining on the mortgage or the replacement cost of the home. Whichever is lower is often the amount of the coverage.

Don’t Let Flood Insurance Soak Your Wallet

Flood insurance can be very costly, especially if you’re buying a home in a high-risk zone with an FHA loan. Luckily, private flood insurance may help you get a policy that is less expensive or provide enhanced coverage and allow you to qualify for a larger mortgage.

Thanks to the changes at HUD, you have more options available when choosing a provider.

At Vargas & Vargas Insurance, we may be able to help you save money while being in a Special Flood Hazard Area. Contact us today to see how we can help. We have access to private flood insurance markets that could save you a bundle.

7 Reasons to Buy Your Next Home in the winter

Posted on December 21, 2022December 23, 2022 by cvargas

A lot of people might think spring or summer months are an ideal time for home shopping after all, the weather is usually nice, and you’re more likely to be out and about anyway. For many reasons, buying a home in the winter is far better.

In reality, it could save you a couple of thousand dollars on average compared to other months.

1. Homes are Often Cheaper in the winter

According to data collected by Realtor.com, not everyone’s willing to look at homes in single-digit temperatures. The months of May, June, July, and August make up 40% of existing-home sales, while January and February account for less than 6%.

2. Sellers are Often More Motivated

In many cases, people who are listing homes in the winter are often under time constraints. This could be due to moving before the end of the year for whatever reason.

The end result is a highly motivated seller who wants to close and move on as quickly as possible.

3. Getting an Idea of Future Winters

One of the best reasons to check out a house in the winter is to get a feel for how it’ll hold up for future winters. If there are any problems, you might even be able to get the price reduced so you could repair the property after the sale.

Pay close attention to any drafts, cold spots, leaks, or other issues that are attributed to the colder months.

4. Possible Faster Closings in the winter

Usually, housing markets pick up during the warmer months. This often means that mortgage brokers could get behind in their workload. This results in waiting longer to close on the home.

During the winter, however, the market isn’t nearly as busy. So, mortgage brokers may be able to process your account quicker.

5. Less Competition for Bids

There is a reason why spring and summer months are better for the housing market. Fewer people are willing to move during the coldest months of the year. This means you’ll have less competition when putting in a bid.

The flip side to that, unfortunately, is that not everyone wants to put their home on the market during the winter. This means there are also fewer homes available to choose from.

Still, less competition could save you a bundle when bidding.

6. Possible Tax Benefits

In most areas, you can reap the tax benefits of the entire year of owning a home if you close before December 31st. This could drastically affect your tax returns come April.

Of course, you want to check with your accountant or with the IRS before you can assume to claim the property.

7. A Present to Yourself

Lastly, buying a home in December could be seen as a present to yourself during the holiday season. Moving into a new house is an exhilarating experience that can greatly enhance a positive mental state.

Not to mention throwing housewarming parties for New Year’s eve.

The Winter is Great for Home Buying

In many ways, the winter months are ideal for purchasing a home. Let Vargas & Vargas Insurance help by finding you the best deals to cover your property when it comes time to secure a policy. Contact us today to find out how we can help get you into the new home of your dreams.

What does flood insurance consider to be a flood?

Posted on December 21, 2022January 9, 2023 by agentinsure

Living in, Massachusetts means that you may need to consider flood insurance. But before you decide to invest in a policy, it’s important to understand what constitutes a flood and how flood insurance can protect your home and possessions. In this post, Vargas & Vargas Insurance looks at some of the key facts about floods and flood insurance.

What is Considered a Flood?

According to FEMA, flooding is a temporary condition where two or more acres of dry land become wholly or partially submerged in water.

In other words, if water accumulates in an area that would normally be dry, such as your lawn and driveway, it is considered flooding. It doesn’t have to be an overflowing river; even heavy rain that causes puddles on your property can count as flooding.

What Does Flood Insurance Cover?

Flood insurance covers damage to your home caused by the rising waters associated with flooding. This includes physical damage to the structure itself (walls, floors, roofing), any items contained within the structure (furniture, electronics), and any appliances that are connected to the house (such as HVAC systems). It also covers items outside the structure, like decks and fences. Additionally, it will cover cleanup costs associated with restoring your property after it has been flooded.

Now that you know what constitutes a flood—and what is covered by flood insurance—you can make an informed decision about whether purchasing flood insurance makes sense for you and your family. To find out more information about getting coverage in Dorchester, MA, contact Vargas & Vargas Insurance today! We’ll help you get the right policy for your needs so you can rest easy knowing that your home is protected against floods!

Insurance Coverage: Are Maintenance Costs Covered?

Posted on December 16, 2022April 5, 2023 by cvargas

Taking care of your property is nothing short of improving your investment. And although homeowner’s insurance can help recover in some cases, it doesn’t cover a lot of maintenance costs.

This is especially true if damages are the direct result of being neglectful. These are just some of the costs that might come out of your pocket.

Termites and Other Insects

Although you may find your home tranquil, there are a lot of insects that might find it tasty. Termites and other insects can quickly turn your home into a sanctuary.

In some instances, insurance policies do not cover the damages created by these bugs, including pest control or home-cleaning services.

This often includes insects such as termites, cockroaches, ants, spiders, and a whole host of pests that tend to invade your privacy. If you see any of these bugs on your property, there’s a good chance they’re also in your home.

Bird, Rodent, and Animal Damage

Another of the most common damages from nature comes in the form of birds and rodents just looking for a place to live. Unfortunately, they will tear apart your home from the inside.

In fact, a lot of people don’t even know there is a critter problem until something like a leaky ceiling or various smells start emanating from the walls.

It’s not just the little ones that can wreak havoc, either. Raccoons are well-known for utilizing roofing materials for both houses and garages to create nests.

Rust, Rot, and Mold

A small leak in your roof created during the winter can lead to costly repairs in the summer. Rust, rot, and mold are common results of neglecting the property. And not all insurance policies will cover the repairs.

For example, let’s say that you neglected to notice that leak in the roof. Over time, the water invading your home can lead to rotting out the drywall as well as propagating mold within the walls.

In this case, your insurance coverage might not cover the maintenance costs and repairs that will accumulate.

General Wear and Tear

Perhaps one of the most obvious elements of being a homeowner is repairing the general wear and tear of the property. This can include everything from replacing an old carpet to buying a new air conditioning unit.

While insurance coverage might not reimburse you for most of these expenses, you might still qualify for discounts. That is if you upgrade the home with preventive appliances, such as fire alarms or anti-theft devices.

To find out more about what discounts you qualify for as a homeowner, be sure to contact your policyholder.

Your Insurance Policy Might Not Cover Maintenance Costs

Although every insurer is different, many won’t cover repairs and other costs related to the upkeep of your home. Instead, those expenses will come out of your pocket.

This is why it’s vital to perform routine maintenance on your property. Even the slightest leaky pipe under the sink can lead to severe and costly water damage.

Preventative maintenance is crucial for keeping your home safe and secure.

At Vargas & Vargas Insurance, we strive to help people understand their policies while finding the best deals for their needs. Contact us today to find out how we can help you keep your home protected.

Always remember, an ounce of prevention is worth a pound of the cure.

Insurance Coverage: What Happens During a Flood?

Posted on December 14, 2022April 5, 2023 by cvargas

Your home insurance policy doesn’t provide a blanket of protection from everything. For example, you might not have coverage if a flood causes water damage to your property. But that also depends on the type of flood and what was damaged.

Today, let’s take a quick look at flooding and what you can do to protect yourself.

What kind of Flooding Isn’t Often Covered?

Although home insurance can help with some costs caused by flooding, there are quite a few that may not be in your policy. This may include:

Natural disasters, such as extreme rain or snow.
External sewage line breaks or backups.
Sump pump flooding.

However, your policy might include coverage in the event of damages from broken pipes inside the home, flooding from a bad water heater, or if a fire was the result of various types of water damage.

Generally speaking, a “flood” is considered any excess water on the property that is normally dry. If a sewage backup is caused by flooding, and you have a sewer backup endorsement on your policy, that is covered by insurance.

Of course, you review your policy with your local independent insurance agent or review your policy.

What Affects Flood Coverage Policy Costs?

Like any other type of insurance, the costs of flood coverage depend on a wide range of factors. This is why people will often pay different premiums even though they live in the same city.

Some of them include:

Risk of Flooding
If your home is in a location that is prone to floods, your policy could increase.

Your Deductible
A higher deductible of the coverage will reduce your monthly premiums.

Property Location
The neighborhood of your home could affect the cost aside from the flood risk.

Age of the Property
As older homes are more prone to needing repairs, their age could increase the cost of a flood policy.

Itemized Schedules
Not everything is covered in the home through flood insurance. Valuables such as jewelry and antiques may need to be scheduled separately.

How to Get Coverage in Case of a Flood

If flooding is a concern, you need to contact your insurance agent to buy a new policy. You can also renew an existing policy to include flood coverage.

The average premium in the United States is around $750. But this can be higher or lower depending on where you live. This is especially true if you live in a location that is prone to some kind of flooding.

At its average cost, flood coverage is only an extra $62.50 per month. Considering the sheer amount of damage water can do to a home, this is not that bad of an expense to protect your family and property.

Water Damage Can Be Devastating

The important thing is to have the flooding repaired immediately. Even the slightest trickle within the walls can result in mold growth, extreme drywall damage, and compromise the framework of your home.

At Vargas & Vargas Insurance, we can help ensure that your policy includes covering floods and other types of water damage. If this is a concern for you, contact us today to see how we can help.

You don’t have to face water damage and flooding on your own if you have proper coverage.

6 Things Car Insurance Doesn’t Cover in Most Cases

Posted on December 5, 2022April 5, 2023 by cvargas

Not only is car insurance a safety net in the event of certain damages, but it’s also a legal obligation. And although your insurance may cover a lot of things, there are some that are just not part of most policies.

So, what kinds of things are not covered by your automobile insurance?

1. Custom Modifications or Upgrades

Most basic policies don’t cover modifications or aftermarket upgrades and parts. And those that do offer coverage often have a cap of $1000 or so.

This means you’ll have to pay out of pocket if your expensive rims are stolen or damaged. This doesn’t include any deductibles you might have in such an instance.

2. Damages Beyond Policy Limits

A collision policy will only cover a certain amount of damages should something happen. In some cases, you might be covered for up to $50,000 in damages.

But what if you smash your car into a brand-new Bugatti? Well, you’ll be paying out of pocket for that particular automobile for years to come.

My point is that damages beyond what your car insurance can cover will be your responsibility.

3. Car Insurance Doesn’t Cover Racing

A lot of people feel the pressure of demonstrating their wheels are superior. This often results in a quick race down some street or boulevard as an exhibition of speed.

Yet, should an accident happen while you’re speeding down the road, most policy claims will be denied.

4. Rideshare and Delivery Businesses

Uber and Lyft are two of the most popular rideshare businesses nowadays. Even delivery service jobs are available from your automobile. But what happens if you accidentally run a red light and T-bone another vehicle?

Most insurance policies will not cover damages caused while running rideshare and delivery businesses from your car.

5. Theft of Property Left in the Car

You probably know a lot of people who keep their wallets in the glove box or middle console. Perhaps you have a golden locket hanging from a rearview mirror.

In the event of these items being stolen, policies will often deny claims of theft. However, your homeowners’ or renters’ policy might. Be sure to check there, first.

6. Drug Testing Your Car?

As absurd as it may sound, drug testing a vehicle is a real thing. This is when a drug kit is used to ensure dangerous substances are not present when dealerships or specialists repair damages. And the process can add a week or two to repair times.

Though, this is usually done in the event of a theft and recovery of a vehicle.

This is driven by recent events involving fentanyl exposure.

However, most insurers have no problem covering costs such as testing or cleaning after a theft or an attempted theft. If there was no evidence to raise a drug-related concern, though, some insurers may not volunteer to pay for contamination testing or clean-up.

The fact of the matter is that this instance is exceptionally rare.

Car Insurance is Still a Necessity

While there may be a few things not covered in your policy, it’s still worthwhile to protect yourself. Accidents happen all the time, whether they’re through the fault of your own or not. The last thing you want is to be on the hook for repairs or get a ticket for not having coverage.

At Vargas & Vargas insurance, we’ll help you find the best policy for your car insurance. Contact us today to see how we can help deliver coverage for your automobile.

While it may be difficult to cover any of the above, you can still rest easy knowing that you’re protected in various other life situations.

Why Do Insurance Rates Increase Over Time?

Posted on November 29, 2022December 10, 2022 by cvargas

As with anything else, insurance rates increase as time marches on. In fact, rates are often affected just as much by inflation as anything else you might buy.

Unfortunately, this means that the cost of premiums and policies will continue to rise. How much these rates increase depends on circumstances ranging from neighborhood growth to the world stage.

Replacement Cost Affects Insurance Rates

The first thing that you should consider is how replacement costs work. This is much different than the purchase price of your home or auto.

The replacement cost includes materials needed to “replace” the property, the cost of labor, and other elements to make it whole. If the cost of wood goes up, so will the replacement cost.

If your policy was frozen at the replacement costs from 20 years ago, it would be short. The end result is the costs coming out of your pocket.

As you can see, this kind of increase is good as it reduces how much you’ll have to pay in the event of an emergency, I recorded talking about replacement cost versus purchase or market value on your home, click here to watch the video.

Home and Auto Rates are Similar

Houses are not the only types of property that may have an increase. Insurance rates for automobiles go up as well.

In order for an auto to become “whole,” you’ll need the cost of materials and labor. Nowadays, this can also include a variety of technological advancements, such as rear cameras, sensors, and the wiring to make it all work.

In some cases, insurers will also consider things like the cost of medical bills when making adjustments. So, if the cost of medical care goes up, so do insurance rates.

Like ripples in a pond, anything affecting specific industries will take a toll on many. For example, the cost of computer chips will impact the cost of replacing the cameras I mentioned earlier.

What Can You Do to Lower Insurance Rates?

Depending on the type of property, there are quite a few methods at your disposal to reduce rates. The first thing you should do is ensure your policy is correct. If you’re paying for something you don’t need or have scheduled, it’s a waste of money.

A few other ways to decrease insurance rates include:

Preventative measures. Fire alarms, anti-theft devices, safety features, and other preventative add-ons often work to reduce home and auto insurance premiums.
Keeping claims to a minimum. The more often you have to file a claim, whether it’s for the home or auto, the more you’ll pay. This is because insurance providers will see you as a high-risk factor.
Shopping around. You can always look around for a lower-cost insurer. However, keep in mind that low cost doesn’t mean superior service.

Insurance Rates Are Part of the Cost of Living

Sure, insurance companies need to make money. Otherwise, they would be out of business. However, not all increases in insurance are the result of greedy CEOs or banks.

Sometimes, increases are simply the result of an increase in the cost of wood or other materials.

At Vargas & Vargas Insurance, we can help you find affordable rates and plans throughout our network. Contact us today to see how we can help you save money on home and auto coverage.

After all, we may help you keep more money in your pocket to cover the other cost-of-living expenses.

If You Are a Renter, Protect Your Possessions with Renters Insurance

Posted on November 28, 2022December 10, 2022 by agentinsure

Do you rent in Dorchester, MA? Are your personal possessions protected with renters insurance? If not, Vargas & Vargas Insurance can provide it.

If you currently rent a home or apartment, you will need insurance coverage to protect your personal possessions. Your landlord’s property insurance only covers his building, not your belongings.

Your personal property will only be covered with renter’s insurance, which you will have to provide. Most homeowners have an insurance policy, but only 41% of renters have renter’s insurance. Why? Many people incorrectly make the assumption that their landlord’s insurance protects them.

Also, they underestimate the value of the things they own. Just consider your electronics. It wouldn’t be a stretch to say that the value could get into the thousands. Then add to it your clothing, furniture, kitchen supplies, etc. You have more than you realize, and replacing them would cost a lot.

If you own a dog and it decides to bite a visitor or neighbor, you could be faced with a lawsuit. A renters’ policy provides the liability coverage needed in this case.

Renters’ insurance is affordable. The average policy costs between $15 and $30 per month. It will vary based on the coverage you choose, the deductible amount, and where you live.

As with every insurance policy, there are some exclusions.

Damage caused by aircraft or vehicles
Earthquakes
Explosion
Falling objects
Fire or lightning
Floods
Riot or civil unrest
Smoke
Theft
Vandalism
Volcanic eruptions
Weight of sleet, snow, or ice
Windstorm or hail

Protect what you worked hard to obtain. Renter’s insurance is a very affordable protection that every renter should have. Vargas & Vargas Insurance can provide a no-obligation quote or answer any questions you may have. Contact our team today. You will be glad you did.

Home Insurance FAQ: Purchase Price vs Replacement Cost pt 2

Posted on November 14, 2022November 11, 2022 by cvargas

In a previous article, we covered a couple of the most common home insurance questions when it comes to the purchase price and replacement cost. Today, we’re going to dive a bit deeper to answer a few more questions when it comes to these two elements.

It is our goal to help you further understand your home insurance policies, which could save you a lot of miscommunications down the road.

Is the Purchase Price and Replacement Cost the Same Thing?

The purchase price of your home depends on several factors. These often include values such as location, age, amenities, and other things that increase its “curb appeal.” However, replacement cost is based on how much it will cost to replace something after damages occur.

Replacement costs can vary depending on current market values. For instance, if the cost of lumber increases, as it did at the beginning of 2022, it would directly impact how much it would cost to rebuild a part of the home.

Can a Replacement Cost Be Higher Than the Purchase Price?

The current market influences the value of any home. If the market is particularly low, it is possible for replacement costs to surpass a home’s value.

This is especially true if the replacement materials are at an all-time premium.

In fact, there are a lot of things that can decrease the value of a home. This could include the safety of the neighborhood, previously sustained damages or even unkempt or dangerous landscaping.

What is the 80/20 Rule for Insuring a Home?

The 80/20 rule often refers to insuring your home for a minimum of 80% of the replacement costs. This doesn’t necessarily mean 20% will come out of your pocket during a claim, though.

In practice, a lot of insurance providers will pay out a claim in full if you maintain the 80% coverage.

Remember, the purchase price has no influence on replacement cost. This means you wouldn’t insure the home for 80% of what you’re paying for it.

When the insurance you carry is lower than 80% of the replacement cost of your home, you are penalized when you have a partial loss, call us, and we can explain further based on your particular circumstances.

Do Insurance Companies Pay the Replacement Value of Items in the Home?

In certain policies, items within the home have coverage in the event of theft, damage, or if destroyed. This is known as the Replacement Cost Value, or RCV. And in some cases, this only applies to objects scheduled in the policy itself.

In this instance, insurers pay the current market value of replacing the item.

For example, technology usually depreciates rapidly. The replacement cost of something like a television or computer is often much lower than the original price.

Know Your Home Insurance Terms

Purchase price and replacement cost are only a couple of home insurance terms you need to know. And the more you understand what’s in your policy, the better prepared you are in the event of an emergency.

At Vargas & Vargas Insurance, we can help you gain some clarity when it comes to your policy. Contact us today and find out how we can further help you with home insurance.

Don’t let a misunderstanding hinder your ability to process a claim.

Home Loan Advisor or Lender First: Which Is Better?

Posted on November 7, 2022November 1, 2022 by cvargas

Buying a property is an exciting process. Especially when you’re looking for that one perfect place to call home for the foreseeable future. But have you spoken with a home loan advisor? Or, did you immediately contact a lender to figure out what you could afford?

A lot of people will go with the latter as it provides a cap on what to expect. However, doing so might actually limit yourself beyond what is necessary.

What is a Home Loan Advisor?

A home loan advisor’s job is to help you figure out lending solutions based on your financial situation. Typically, the loan advisor works with credit unions and banks while having expertise in the products and services that are offered.

Essentially, they’ll walk you through the entire process from the initial application to the moment you close on a home. This gives you a bit of flexibility while potentially expanding the list of properties available to you.

How Small Credit Changes Can Affect Everything

For most people, it can take weeks if not months to find that perfect home. And if your lender ran a credit check at the beginning, you’re essentially locked at a specific loan amount.

During that time, you could be working on your credit score. Perhaps you made an extra payment towards something that will raise your score to a higher tier.

Unfortunately, this increase won’t be applicable as the lender already approved a specific amount for the loan. Or, it could take a couple of months before the credit score increases from those adjustments.

Speaking with a home loan advisor first can help you figure out the best course of action to take when it comes to your credit score. This includes any positive elements that may be pending.

It could directly affect your interest rates.

Available Down Payment

For the most part, people assume they need at least 20% of the home’s price as a down payment. So, for a house listed at $270,000, you’d need $54,000 upfront. That is if the property doesn’t qualify for things like VA or USDA loans, which often allow for purchases without down payments.

In reality, though, that down payment could be much lower depending on your financial status and the type of loan. A home loan advisor can examine your situation and find alternatives when it comes to how much you need as a down payment.

This means you might have a bit more flexibility when it comes to the amount of money you’ll need if you’re offer is accepted on a property.

Speak with a Home Loan Advisor Today

While you could still buy your house without assistance from a home loan advisor, you may have paid more than what was necessary upfront. Not to mention undercutting what you may have qualified for, in the first place.

At Vargas & Vargas Insurance, we work with the best of the best of qualified professionals to cover various home-buying needs. Contact us today so we can get you in touch with a home loan advisor that will have your best interest at heart.

It could save you an incredible amount of stress while buying your home.

Home Insurance Terms You Need to Know Going Forward

Posted on October 31, 2022October 21, 2022 by cvargas

Understanding the terms of your home insurance policy can alleviate a lot of confusion and problems down the road. It’s not simply a form full of non-sensical legal jargon; it’s the plan to keep your home and family safe from financial ruin.

Today, let’s take a look at those terms and clear some of the confusion.

General Home Insurance Terms

While a lot of insurance plans are unique to certain vendors, there are terms that are usually universal. So, no matter who is holding your policy, this list will still be of great benefit.

Declarations Page

The Declarations page is essentially a quick overview of the policy details. It delivers fundamental information such as:

Your basic info
Name and address of the insurance company
Coverage dates
Basic outline of coverages
Deductibles
Premium
and other basic interests

Essentially, this page is the “proof of insurance” when a mortgage company asks.

Insured/Insurer

The Insured party is the individual for which the coverage is being provided. This is typically the home or property owner.

An insurer is the insurance company providing that coverage.

Additional Insured

The Additional Insured party is anyone other that the homeowner who has a vested interest in the property. This is often the mortgage company if applicable.

Also, this party can be a payee for larger claim payouts in the event of something major. For example, if a hurricane disintegrates half of your home, the mortgage company may receive the funds.

Policy Period

The Policy Period is the calendar date when the insurance is active. This is often processed annually, but some policies may be month-to-month.

Premium

Now, the Premium is how much your insurance costs every 12 months. This is not to be confused with a monthly payment, which is a considerably different amount.

However, the premium can be broken up into monthly, quarterly, and semi-annually payments to make it more immediately affordable.

Usually, homeowners will pay the amounts directly to the insurer through a mortgage escrow account.

Deductible

One of the more important home insurance terms to know is the Deductible. This is the amount a claim has to reach before the insurer bears any financial responsibility.

For instance, if you have a deductible of $500, but the damage repair or placement cost is only $450, the insurer doesn’t have to pay and it will come out of your pocket.

Of course, this is just an example. Every insurance company has its own levels for deductibles, and the higher the deductible, the less your annual premium you pay.

All-Risk/Named-Peril

An All-Risk policy will cover all potential losses other than specific exclusions of the policy. These are not very common as they are more expensive. However, they tend to be far more inclusive.

The Named-Peril policy covers causes of loss specific to the policy and nothing else. For instance, an insurance policy for the midwest may include tornado damage as it is a common risk for the property. However, it may not include earthquake coverage should one happen.

Replacement Cost Value / Actual Cash Value

Replacement cost and actual cash values are very different, especially when considering coverage and when filing insurance claims.

The Actual Cash Value, or ACV, is the cost to fix your home minus its decrease in market value due to age, location, and other environmental factors.

The Replacement Cost Value, or RCV, is the cost to replace or repair elements of the home or property according to today’s prices.

Other Valuables Not Included

Did you know that not all of your valuables may be covered by your home insurance policies? Things like jewelry, guns, cash, and antiques are not often covered unless you schedule them specifically on your policy.

Don’t leave anything to chance. Take a look at your policy and talk with an agent today to identify things of value in your home that are not currently covered.

Knowing Home Insurance Terms is Vital

Knowing how to read your home insurance policy is an essential facet of life, and understanding the terms is an excellent first step. It can help reduce a lot of confusion in the event of an emergency.

Not to mention making sure certain things in the home are covered.

At Vargas & Vargas Insurance, we’ll help you understand the details and terms of your home insurance policy. Contact us today and let us provide assistance that will give you peace of mind.

What to Expect From Condo Insurance

Posted on October 31, 2022November 2, 2022 by agentinsure

What is condo insurance? Buyers may be wondering about this while searching for the right insurance plan. Similar to homeowner’s insurance, condo insurance covers scenarios of unexpected damage or losses from a condominium unit. This could include repair costs after a perilous event, repayment for lost or stolen items, or renovation costs for remodeling broken parts of the condo.

At Vargas & Vargas Insurance, we proudly offer insurance to the condominium owners of Massachusetts.

Buying Condo Insurance: What to Expect

Getting condo insurance is generally a good idea if you’re at risk of property damage or loss of personal belongings. Some mortgage lenders or property owners will require you to purchase condo insurance to own the condo. Either way, this type of insurance will give you peace of mind in the extreme case of a fire, a storm, or a break-in.

At Vargas & Vargas, you can expect condo insurance to cover specific policies, such as damage to the plumbing, the HVAC system, the water pump, or broken windows or doors. While often covering storm damage situations, our insurance package also covers theft, vandalism, or impact from vehicles or aircraft.

Getting in Touch in Massachusetts

Before purchasing insurance coverage, you should check with your condo’s association policies to see what the insurance requirements are and what’s already covered by the property owners. Once you know the value of your condo, one of our agents will craft an insurance plan that covers all of your needs. While speaking to a representative, you can expect to be asked specific questions about your living situation – like belongings you own. In Massachusetts, it’s common for insurers to cover computers, entertainment systems, and expensive artwork kept inside the condo. Once you’ve purchased your coverage plan, our agent will explain how you can file an insurance claim when need be.

Are you interested in hearing quotes? Contact Vargas & Vargas Insurance at 617-298-0655. Our team would be glad to answer any of your questions.

What is Inherent Diminished Value and How it Affects an Auto Accident?

Posted on October 24, 2022October 17, 2022 by cvargas

It’s quite common for some pieces of personal property to diminish in value almost immediately. For example, a computer could lose a great deal of its replacement value within days because of the ever-changing nature of technology and its use. But how does Inherent Diminished Value work for a car?

This depends on the state in which you live. But in Massachusetts, IDV is an established precedent.

What is Inherent Diminished Value?

Inherent Diminished Value, or IDV, is when a vehicle loses value due to damages caused by a no-fault accident. This is when there is a collision through no fault of your own.

As some damage is prevalent even after repairs, courts have ruled that IDV claims can help the owner be “made whole.”

These are usually filed as third-party claims. That’s because you’ll contact the at-fault party’s insurance company.

An example of this is when an accident occurs through no fault of your own that causes structural damage to the vehicle’s framework. Although repairs can be made to allow the vehicle continued use on the road, the frame itself could be altered in a way that disrupts usage as intended.

If the vehicle has less than 20,000 miles on the odometer after suffering severe structural damage, this could result in an IDV claim of roughly 10% of the vehicle’s value.

Is There a Difference in Depreciation vs Inherent Diminished Value?

Depreciation is when the value of the vehicle decreases over time due to normal wear and tear. In fact, most pieces of property will depreciate over time except for housing.

A well-maintained home will actually appreciate over the years, which is why homeownership is a great investment.

So, a vehicle with 200,000 miles will depreciate quite a bit because it has been extensively used. Even after installing a new motor, the vehicle will never be at its original MSRP.

Inherent Diminished Value, on the other hand, happens immediately upon an accident. This is why the IDV claim is much more for a new vehicle vs an older one. It hasn’t had nearly as much wear and tear.

How to Calculate Inherent Diminished Value

Let’s take a look at the calculations to establish IDV. For this example, let’s say I have a 1990 Dodge Daytona ES with 82,399 miles.

1. Establish the Car’s Value

The first thing we’ll do is estimate the vehicle’s value. This gives us a base amount. A commonly used website for finding vehicle value is the National Automobile Dealers Association, or NADA.

In my example, the value of a 1990 Dodge Daytona ES is $11,000.

2. Calculate the Value’s Base Loss

In many instances, the insurance company will calculate the base loss at a maximum of 10%. This means my Daytona’s base loss is $1,100 (11,000 x .10)

3. Use the Multiplier for Damages

Use the multiplier from the numbers below:

1.00 = Severe structural damage
0.75 = Major damage to structure and panels
0.50 = Moderate damage to structure and panels
0.25 = Minor damage to structure and panels
0.00 = No structural damage or replaced panels

Let’s say my car was in an accident that severely altered the frame of the vehicle. I would use the “1.00” multiplier. So, my IDV is still at $1,100 (1100 x 1.00).

4. Use the Multiplier for Mileage

Remember when I told you about the “depreciation” of an automobile? It’ll actually play a role in the Inherent Diminished Value of your car.

Use the mileage multipliers below:

1.00 = 0 < 20,000 miles
0.80 = 20,000 – 39,999 miles
0.60 = 40,000 – 59,999 miles
0.40 = 60,000 – 79,999 miles
0.20 = 80,000 – 99,999 miles
0.00 = 100,000+ miles

For example, let’s now say that my vehicle had only 82,399 miles on the odometer at the time of the accident. I would use the “0.20” multiplier. As a result, my IDV would decrease further to $220 because of the mileage (1100 x 0.20).

Any vehicle that has over 100,000 miles may not qualify for an IDV claim.

When Should You File a Diminished Value Claim?

For the most part, the Inherent Diminished Value triggers when you are involved in an accident through no fault of your own. This means you’re most likely to file a claim against the at-fault driver’s insurance company.

If you’re involved in a hit-and-run, or if the at-fault driver is uninsured, you may be able to file a claim against your own insurance company. This is because there is no other insurer involved.

File your IDV claim as soon as possible. Some areas may have a statute of limitations or your vehicle could further decrease in value as time marches on. In any case, make sure you have supporting documentation.

What Kind of Coverage Do You Have?

Although your insurance may cover a great deal of damage, you may also receive additional restitution due to Inherent Diminished Value.

At Vargas & Vargas Insurance, we help our clients get what they need and deserve. Contact us today to find out more about how we can help keep your automobile covered.

Not all repairs can completely restore a vehicle back to its original functionality. Can compensation help you in such a situation?

Do You Have the Right Small Business Coverage?

Posted on October 17, 2022October 15, 2022 by cvargas

Starting a small business is exciting, especially if you come up with something that takes off quickly. In the hustle of getting everything put together, how much time did you spend considering insurance coverage for your small business?

Sure, you may have property insurance in the event of a fire or other natural disaster. But what about things that property insurance doesn’t cover?

Liability insurance can only go so far as to keep your business protected.

What Kind of Small Business Coverage Do You Need?

General Liability insurance is better than nothing at all. But you might want to consider expanding it with an Umbrella policy or extending it to cover any of the following.

Commercial Auto Insurance

Does your small business have a car of its own? There’s a big difference between commercial and personal coverage. For instance, commercial coverage supports you and any employees driving company vehicles.

Commercial Property Insurance

In many cases, commercial property insurance covers tools, equipment, inventory, and any furniture needed by the business. In the event of a fire or flood, this plan can help replace those things you need for operation.

Workers’ Compensation

Workers’ compensation is to help alleviate the financial burden of employees who become sick or injured while on the clock. This type of insurance plan covers things like death benefits, lost wages, and various disabilities that result from those instances.

Professional Liability Insurance

While mistakes and accidents do happen, they could result in a lawsuit against your company. Professional liability covers much of the litigation process in such cases.

Data Breach Coverage

Due to the nature of the Internet, protecting data is a constant battle. But do you have coverage in the event of a data breach? This type of insurance can help with various expenses. For instance, it can help with notifying customers impacted by the breach, hiring PR firms to help with negative press, or even credit services to help breach victims.

What About Home-Based Small Business Insurance?

A growing number of people are working to build a home-based business today. Even if you’re simply a freelancer working from home, having the right insurance plans can give you peace of mind.

Now, homeowner’s insurance can cover quite a bit when it comes to business property, such as computers. But what about other things such as employee injuries, data loss, or lawsuits?

Do you have property, inventory, or supplies that are relevant to your small business practices?

Take a few moments and really process what your home-based business needs to function and ensure your current insurance plans cover all the bases.

Choose the Right Coverage for Your Business Needs

Protecting your assets is of utmost importance if you want to build a successful business. One simple happenstance could quickly turn into a financial nightmare.

At Vargas & Vargas Insurance, we do what we can to ensure your small business needs are covered. Contact us today to find out how we can help protect your livelihood from suffering heavy losses in the event something happens.

All it takes is one storm, accident, or natural disaster to decimate what you’ve worked so hard to build.

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