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How Does a Claim Affect My Auto Insurance Rate?

Posted on by cvargas

If you’ve recently been in an accident — or even just filed a small claim — you might be wondering:
“Will this make my insurance go up?”

It’s a fair question. Auto insurance pricing can feel like a mystery, and policyholders are often surprised by what causes a rate increase (or doesn’t). Whether your claim is small or serious, understanding how insurers calculate risk can help you make smarter decisions — before and after a claim.

In this article, we’ll explain exactly how a claim can affect your premium, what types of claims are most likely to trigger an increase, and what you can do to minimize the impact.

Will Every Claim Increase My Insurance Rate?

Not necessarily. While it’s common for rates to go up after a claim, it depends on several key factors:

  • Who was at fault?
  • What type of claim was filed?
  • How severe was the damage or injury?
  • How many claims have you filed recently?
  • What’s your insurer’s specific pricing model?

If the accident was your fault, there’s a strong chance your premium will increase at your next renewal — but the amount varies widely.

What Types of Claims Affect Your Rate the Most?

Here’s a breakdown of how different types of claims typically impact your premium:

🔺 At-Fault Accidents

These are the most likely to result in a rate increase, especially if property damage or injuries are involved. In Massachusetts, your premium may increase for up to 6 years.

⚖️ Not-At-Fault Accidents

Generally, these do not impact your rate. However, too many not-at-fault claims can make you appear high-risk, especially if they’re paired with other violations.

🪟 Comprehensive Claims (theft, weather, vandalism)

Comprehensive claims typically have minimal impact on your rate, especially if it’s your first one.

🚘 Glass-Only Claims

In most cases, windshield or glass claims do not affect your premium. They’re usually treated as minor comprehensive losses.

How Much Can Your Auto Insurance Go Up After a Claim?

Rate increases vary based on your insurer and situation, but here’s a general idea:

Claim TypeEstimated Rate Increase
First at-fault accident20%–40%
Multiple at-fault claims50%+
Comprehensive claim0%–10% (usually no increase)
Glass-only claim0%

In Massachusetts, insurers also apply surcharge points for at-fault accidents, which directly affect your premium for multiple years.

How Can You Avoid or Minimize a Rate Increase?

If you’re worried about a rate hike, here are a few strategies:

  • Accident forgiveness: Some carriers offer forgiveness for your first at-fault claim.
  • Raise your deductible: A higher deductible can lower your premium and discourage filing small claims.
  • Pay out of pocket: For minor damage below or near your deductible, it may be smarter to avoid filing altogether.
  • Safe driver discounts: Maintain a clean driving record to qualify for policy credits or reductions.
  • Bundle your policies: Insurers may soften a rate increase if you also carry home, renters, or umbrella coverage with them.

Final Thoughts: Should You File That Claim?

At the end of the day, a claim doesn’t always mean your rate will skyrocket — but it can if you’re at fault or if you’ve filed multiple claims in a short time.

Now that you understand how insurers evaluate risk and pricing, you’re better prepared to weigh the pros and cons of filing a claim.
If you’re unsure, talk with your insurance broker before submitting it. They can walk you through the long-term cost implications and help you decide what’s best for your situation.

Conclusion: What You Should Do Next

Accidents happen — but rate increases don’t have to. You’ve now learned which types of auto claims can impact your premium and by how much.

The next step? If you’ve recently been in an accident or are thinking about filing a claim, connect with your broker first. They’ll help you understand your options and how it affects your long-term insurance costs.

Need help reviewing your policy or comparing quotes after a recent claim? The team at Vargas & Vargas Insurance can be reached at 617-298-0655 and will make it simple.

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You’re Being Sued for Something That Happened on Your Property?

Posted on by cvargas

Here’s What You Need to Know Before It’s Too Late

Have you received a letter saying you’re being sued for something that happened at your home or on your property?
Or, are you wondering what your insurance covers—and what it doesn’t—when someone gets hurt or claims damages?
This kind of letter is more common than you might think. Whether it’s a neighbor tripping on your steps, a contractor getting injured in your yard, or even a guest’s dogfight with yours—liability lawsuits can blindside homeowners and renters alike.
In this article, we’ll break down what happens if you’re sued, how your insurance policy helps (or doesn’t), and what steps you can take right now to protect yourself—including why you should review your liability coverage today.

Section 1: Why You Might Be Sued for an Incident on Your Property

Accidents happen—but when they happen on your property, you can be held legally and financially responsible.

Common reasons people get sued include:

  • A guest trips and falls on an uneven walkway
  • A tree from your yard falls on a neighbor’s car
  • A child gets injured on your trampoline or pool
  • A contractor slips on icy steps while making repairs
  • A visitor’s pet is injured by your pet

Important: Even if it wasn’t your fault—or you weren’t even home—you can still be named in a lawsuit.

Section 2: What Does Homeowners (or Renters) Insurance Cover in a Lawsuit?

If you’re insured, your policy may include personal liability coverage, which can help pay for:

  • Legal defense costs (even if you’re not found liable)
  • Medical expenses for the injured party
  • Settlement amounts or court judgments up to your coverage limit

💡 Most standard policies offer $100,000–$300,000 in liability coverage.

But what if your case exceeds that? Or what if the incident isn’t covered?

Section 3: 3 Critical Questions to Ask About Your Liability Coverage

Before you’re in legal trouble, review your policy and ask:

  1. Do I have enough liability coverage for a serious claim?
    A bad injury or lawsuit could easily cost more than $300,000. If you have assets (like a home or retirement savings), you could be personally responsible for the rest.
  2. Does my policy cover incidents involving guests, contractors, or pets?
    Some policies exclude specific activities or animals. Always check exclusions.
  3. Should I consider umbrella insurance?
    Umbrella policies add extra liability protection—usually in $1 million increments—for a relatively low cost.

Section 4: What to Do If You Get a Lawsuit Letter

If you receive a letter or legal notice:
✅ Don’t ignore it – Lawsuits are time-sensitive.
✅ Notify your insurance company immediately – They’ll guide you through next steps.
✅ Avoid contacting the person suing you directly – Let your insurer or lawyer handle all communication.
✅ Gather documentation – Photos, witness statements, and your policy details will be important.

Stay Protected and Proactive

At the end of the day, anyone can face a lawsuit—even for something they didn’t directly cause. And when it happens, you’ll want to be sure your insurance policy actually protects you. Now that you know what personal liability coverage can and can’t do, it’s time to take action.

✅ Review your coverage.
✅ Ask the right questions.
✅ Speak to a trusted expert.

🔐 Need help reviewing your policy or increasing your protection?
Reach out to the team at Vargas & Vargas Insurance at 617-298-0655, or connect with your independent broker today.
We’re here to make sure you’re never left exposed.

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Insurance Reality Check: Closing Flood Gaps and Tackling Soaring Premiums

Posted on by cvargas

Do you know exactly what your policy would – and wouldn’t – pay for if disaster struck tonight?
Has your latest renewal bill jumped so high you’re questioning whether you can afford to stay put?

In this post we’ll demystify two mounting threats to American homeowners – hidden flood-coverage gaps and rapidly rising premiums – so you can protect your biggest asset before the next storm or statement arrives.

You’ll see why standard policies ignore the nation’s most common catastrophe, what’s really pushing rates up, and the practical moves smart owners use to stay covered without overpaying. (The conversation is inspired by Lew Sichelman’s “The Property Insurance Conundrum” in Banker & Tradesman.)* (Banker & Tradesman)

1 | The Flood Gap Most People Miss

Low-risk ≠ No-risk

Only 3.3 percent of U.S. homeowners carry a National Flood Insurance Program (NFIP) policy, yet almost one-third of all NFIP claims originate outside FEMA’s high-risk zones. (FloodSmart, FloodSmart) In other words, your address can be labeled “moderate” and still wind up under water.

Why your homeowners policy won’t help

Standard coverage pays for fire, theft, wind, hail and liability – but not for water that first touches the ground. Just one inch of floodwater can rack up $25,000 in repairs to flooring, drywall, wiring and HVAC – all on your dime if you have no separate flood policy. (FEMA)

Who should look again at flood insurance

  • Homes near any creek, pond or storm drain
  • Finished basements or ground-level living space
  • Areas with heavy rain, rapid snowmelt or recent development that speeds runoff

Preferred-risk NFIP policies often start below $500 a year, and many private carriers now compete with broader coverage or higher limits. (Remember: most policies carry a 30-day waiting period, so you can’t buy protection the night before a storm.)

2 | The Premium Pinch Hitting Every ZIP Code

Numbers that turn heads

  • 90 percent of owners saw premiums rise in the past two years, and 57 percent say if costs keep climbing they may have to move. (MBA Newslink)
  • 1 in 7 owner-occupied homes – 11.3 million properties – are now completely uninsured, many because the price feels out of reach. (LendingTree)

Six forces driving rates higher

  1. Record catastrophe losses (wildfire, hurricane, derecho) deplete carrier reserves.
  2. Reinsurance costs – insurers’ own insurance – have spiked, and the bill rolls downhill.
  3. Construction inflation makes every claim costlier (lumber, copper, labor).
  4. Tech-filled houses mean pricier contents and smart-home systems to replace.
  5. Litigation hot spots push carriers to raise rates or exit entire states.
  6. New climate-aware risk models re-rate formerly “safe” neighborhoods.

3 | Six Proven Ways to Keep Coverage Affordable

  1. Annual independent market check – carriers react differently; switching can save hundreds.
  2. Adjust deductibles – raising a $1,000 deductible to $2,500 often trims 5-12 percent (keep an emergency fund).
  3. Bundle home, auto and umbrella – multi-policy discounts still knock 10-25 percent off.
  4. Harden your home – impact-resistant roof, leak-sensing shut-off valves or wildfire-wise landscaping win sizable credits.
  5. Claim clean-up – small, preventable claims can haunt you for five years; fix what you can out-of-pocket.
  6. Document upgrades – new roof or wiring? Send photos and receipts to your broker mid-term for an immediate rate review.

4 | Dropped or Non-Renewed? Act Fast.

  1. Call your insurance broker the day the letter arrives – you often have 45-60 days to remedy issues.
  2. Get the carrier’s written reason – a quick roof repair or tree trim may restore eligibility.
  3. Shop surplus-line and state “last-resort” markets to avoid a dangerous coverage lapse.
  4. Keep proof of mitigation – photos of upgrades and inspection reports help negotiate your next quote.

5 | Why “Self-Insuring” Is Rarely Safe

A moderate house fire averages over $320,000 for structure and contents, and liability suits can hit seven figures. Mortgage lenders will also force-place coverage at two-to-three times normal rates if you let a policy lapse. Unless you can write a six-figure check tomorrow, dropping insurance is gambling with your future.

6 | Key Takeaways

  • Flood is America’s most common disaster, yet standard homeowners policies exclude it.
  • Premium pressure is real, driven by climate, reinsurance and rebuilding costs.
  • You’re not powerless: shop annually, harden your home and close flood gaps before the next headline hits.

Ready for a true policy check-up?

Vargas & Vargas Insurance is an independent agency that works for you, not the carrier. We compare dozens of companies, uncover every discount, and explain in plain English what’s covered, what’s not, and what it will really cost to fill the gaps – flood included.

👉 Click here to schedule your free, no-pressure coverage review today.

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Why Some Insurance Companies Are No Longer Offering Coverage – And What You Can Do About It

Posted on by cvargas

Why Are Some Insurance Companies Pulling Out? 🤔

If you’ve been hearing that certain insurance carriers are no longer offering policies in your area, you’re not alone. Across the country, many insurers are limiting coverage, increasing premiums, or even pulling out of specific markets altogether.

So, what’s going on? Here’s a closer look at why some insurance companies are saying “no” to coverage—and what you can do about it.

1️⃣ Increased Claims & Natural Disasters 🌪️🔥🌊

Severe weather events are becoming more frequent and costly. Insurers must pay out massive claims after:
✔ Hurricanes and flooding in coastal states 🌊
✔ Wildfires in California and the West 🔥
✔ Tornadoes and hail storms in the Midwest 🌪️
✔ Blizzards and ice storms in the Northeast ❄️

💰 Example: Hurricane Ian in 2022 resulted in over $112 billion in damages, forcing some insurers to stop writing new policies in Florida. (Source: NOAA)

With rising risks, some insurers decide to withdraw rather than take on financial losses.

2️⃣ Insurance Fraud & Rising Litigation Costs ⚖️

Fraudulent claims and excessive lawsuits are another big issue. Some states have seen a spike in lawsuits against insurers, forcing them to either increase rates or stop offering coverage.

📍 Example: In Florida, a surge in fraudulent roofing claims and lawsuits led to some major insurance carriers pulling out of the state entirely. (Source: III)

More lawsuits = higher costs = fewer carriers willing to offer insurance.

3️⃣ Inflation & Cost of Rebuilding 🏗️

The cost of rebuilding homes and repairing vehicles has skyrocketed due to:
✔ Higher material costs (lumber, metal, concrete)
✔ Labor shortages in construction
✔ Supply chain issues delaying repairs

💡 Fact: The cost to rebuild a home has risen over 30% in just a few years. (Source: NAHB)

Because insurers base premiums on replacement costs, many are either raising prices or pulling out of expensive markets.

4️⃣ Financial Stability & Reinsurance Costs 💰

Insurance companies don’t just collect premiums—they buy reinsurance to protect themselves from catastrophic losses. But reinsurance costs are soaring, and some insurers can’t afford to operate profitably.

🔹 Example: In 2023, some insurers in California, Louisiana, and Florida had to exit the market because reinsurance costs made it unsustainable to stay in business. (Source: AM Best)

What Can You Do If Your Carrier Leaves? 🛑➡️✅

If your current insurance company stops offering coverage, you still have options:

✅ Work With an Independent Insurance Broker

Your best bet is to connect with a local independent insurance broker. Unlike agents who work for a single insurance company, independent brokers have access to multiple carriers, giving you more options and better rates.

📌 Why work with an independent broker?
✔ More choices – They can shop policies from multiple companies, not just one.
✔ Local expertise – They understand state-specific insurance issues and regulations.
✔ Personalized solutions – They match you with the best policy for your specific needs.
✔ Better pricing – Since they compare multiple options, you’re more likely to get a competitive rate.

When a big-name carrier pulls out of the market, a broker can help you find another provider quickly—often before your current policy expires.

Other Steps You Can Take

1️⃣ Shop Around – Other carriers may still write policies in your area.
2️⃣ Look Into State-Backed Plans – Some states offer last-resort insurance options (like Citizens Insurance in Florida).
3️⃣ Improve Your Risk Profile – Making home improvements (like a new roof) or maintaining good credit can make you more attractive to insurers.

Final Thoughts: Stay Proactive & Work With a Broker 🏡📜

If you hear that your insurance company is pulling out, don’t panic—but act quickly to secure new coverage. An independent broker is your best resource to help you navigate this situation.

📌 Need help finding coverage? Contact a local independent insurance broker to explore your best options today!

🔗 Related Resources:

Would you like personalized advice on securing coverage? 📞 Reach our team at 617-298-0655 😊

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Do I Need to Add My New $20,000 Fence to My Home Insurance Policy?

Posted on by cvargas

Question: I recently built a new fence for $20,000. Is it covered by my home insurance, or do I need to add it separately?

Short Answer: Your new fence is automatically covered under Coverage B – Other Structures on your HO3 home insurance policy — but only up to a point. You’ll want to check your policy limits to make sure you’re fully protected. Let’s walk through exactly what that means.

What Is Coverage B in a Homeowners Policy?

Coverage B protects detached structures on your property that are not physically connected to your primary home.

These include:

  • Fences
  • Detached garages
  • Sheds
  • Pools
  • Driveway lighting
  • Guest houses
  • Gazebos

Your fence falls under this category — so yes, it’s technically already included in your policy.

How Much Coverage Do You Get for a Fence?

Most HO3 policies allocate 10% of your Dwelling Coverage (Coverage A) to Coverage B.

So, if your main home is insured for $800,000, then you automatically get:

$80,000 of coverage for other structures — including your fence.

That means your $20,000 fence is well within the included limits. However…

When Should You Add Extra Coverage?

Here’s the key issue:
If you’ve made multiple upgrades to your property — say, a $30,000 detached garage and a $40,000 pool — that 10% limit may not be enough.

If the total value of your detached structures exceeds your Coverage B limit, you may be underinsured.

In that case, it’s time to talk to your insurance agent about increasing that limit. Adding a higher limit for other structures is a simple endorsement and usually doesn’t drastically change your premium — but it gives you peace of mind.

Absolutely — here’s a new section you can add directly into the article, formatted to match the current structure and optimized for both readability and keyword usage:

How Much Does It Cost to Increase Coverage B on an HO3 Policy in Massachusetts?

If your detached structures — like a fence, pool, or shed — are worth more than 10% of your home’s dwelling coverage, you’ll want to raise your Coverage B limit. But how much does that actually cost?

In Massachusetts, increasing Coverage B is done through an endorsement to your existing HO3 policy. The cost typically depends on:

  • How much additional coverage you need
  • Your insurance carrier
  • Your home’s location and risk factors

On average, here’s what you can expect:

  • Adding $10,000–$20,000 in extra Coverage B: ~$10–$50/year
  • Adding $50,000+ in Coverage B: ~$50–$100/year

These numbers are just estimates and can vary based on your specific insurance company’s rates.

The good news? Increasing your Coverage B limit is usually very affordable — especially when you compare it to the cost of rebuilding a structure like a fence or detached garage out of pocket.

To find out exactly what it would cost for your policy, just reach out to your insurance broker. Most carriers in Massachusetts can update your coverage quickly — often in just a few minutes.

What Happens if You Don’t Increase the Limit?

Let’s say a storm knocks down your new fence — and the repair estimate is $20,000.

If your other structures (like a shed, pool house, or lighting) already eat up $70,000 of your $80,000 Coverage B, you might only have $10,000 left to put toward your fence.

That means you’re left footing the rest of the bill.

Final Thoughts: Should You Update Your Insurance After Installing a Fence?

You don’t need to “add” your fence to your policy, because it’s already covered under Coverage B.
BUT — you do need to make sure your total Coverage B limit is enough to protect everything you’ve built on your property.

Next step:

Have a quick conversation with your insurance agent. It takes five minutes to confirm whether your limits are still appropriate — and it could save you thousands later.

Conclusion: What You Should Do Next

At the end of the day, you’ve invested real money into making your property look and feel the way you want. Whether it’s a $20,000 fence or a new garage, you deserve to know it’s protected.

Now that you understand how your HO3 policy works — and how Coverage B applies to detached structures — it’s time to review your policy limits and ask: “If something happened tomorrow, would I be covered?”

If you’re unsure, we’re here to help you walk through your policy step by step and find the coverage that’s right for your home.

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Why Won’t My Insurance Company Replace My Roof?

Posted on by cvargas

If you’ve recently filed a claim for a roof replacement and your insurance company denied it, you’re not alone. Many homeowners assume their insurance will cover a new roof after damage, only to find out that’s not always the case.

So, why won’t your insurance company replace your roof? The answer often comes down to policy terms, the cause of damage, and the age of your roof. Let’s break it down.

1. Insurance Covers Sudden Damage, Not Wear and Tear

One of the most common misconceptions about home insurance is that it covers all roof damage. The reality? No property insurance policy is a maintenance policy.

That means gradual wear and tear, neglect, or aging won’t be covered. Insurance is designed to protect against sudden, unexpected events—like:
✅ Hailstorms
✅ Fallen trees
✅ Fire
✅ Windstorms (depending on your policy)

However, if your roof is simply old or deteriorating from age, poor maintenance, or previous unreported damage,your claim may be denied.

🔍 Example:

If a hailstorm damages your 5-year-old roof, your insurance will likely cover repairs or replacement.
But if a 20-year-old roof starts leaking due to worn-out shingles, that’s considered normal aging—which insurance won’t cover.

2. The Age of Your Roof Matters

Many insurers have roof age limits when it comes to full replacements. If your roof is 15 to 20 years old, your coverage may be limited to actual cash value (ACV) rather than the full replacement cost.

  • Replacement Cost Value (RCV): Pays for a new roof at today’s prices, minus your deductible.
  • Actual Cash Value (ACV): Pays only for the depreciated value of your roof, meaning you’ll receive significantly less money.

If your insurer only offers ACV coverage, you may need to pay a large portion of the replacement cost out of pocket.

🔗 Check out this guide from the Insurance Information Institute to understand how roof insurance coverage works.

3. Pre-Existing Damage or Poor Maintenance Can Lead to Denials

If an insurance adjuster inspects your roof and finds signs of pre-existing damage—such as missing shingles, previous leaks, or mold growth—they may reject your claim.

This is why regular roof inspections and maintenance are crucial. Many policies state that homeowners must take reasonable steps to maintain their property—and failing to do so can result in denied claims.

What Can Cause a Denied Roof Claim?

🚫 Improper installation
🚫 Neglect or lack of maintenance
🚫 Existing leaks before a storm
🚫 Roof damage not reported in a timely manner

If an insurer suspects your roof was already compromised before the claimed event, they may deny coverage.

4. Certain Weather Events May Not Be Covered

Did you know that some policies exclude specific types of storm damage?

For example, if you live in a hurricane-prone area, your insurance might have a hurricane or windstorm deductiblethat requires you to pay a portion of repairs out of pocket before coverage kicks in.

Similarly, earthquakes and floods are not covered under standard home insurance policies—you’d need separate policies for those.

Pro Tip: Always review your policy exclusions and discuss coverage details with your insurance provider.

🔗 Learn more about what home insurance covers from the National Association of Insurance Commissioners (NAIC).

5. Work With a Reputable Roofing Contractor for an Inspection

If your claim is denied, it’s important to get a second opinion from a trusted roofing contractor. Sometimes, insurance adjusters miss critical damage or incorrectly classify the issue as wear and tear.

Working with a professional roofer can help you:
✔️ Identify legitimate storm damage
✔️ Document necessary repairs for an insurance appeal
✔️ Ensure your roof is properly maintained to prevent future claim denials

🔗 Mario’s Roofing is a trusted local roofer that provides high-quality roof inspections, repairs, and replacements. If you suspect your roof has damage, reach out for a professional evaluation.

What You Can Do If Your Roof Claim Is Denied

If your claim is denied, don’t panic. Here are some steps to take:

✅ Request a detailed explanation of the denial from your insurance company.
✅ Check your policy to ensure the claim should or shouldn’t be covered.
✅ Get a second opinion from an independent roofing contractor.
✅ Consider appealing the decision with additional evidence, such as photos and maintenance records.
✅ Ask about partial repairs if a full replacement isn’t covered.

Final Thoughts: Be Proactive About Roof Maintenance

Your home insurance is there for sudden damage—not maintenance issues. The best way to ensure coverage is to stay ahead of roof problems by:
✔️ Getting annual roof inspections
✔️ Fixing small issues before they become major problems
✔️ Keeping documentation of repairs and inspections

If your roof is nearing the end of its life, contact a trusted roofing contractor to assess whether it’s time for an upgrade—before damage leads to costly repairs or denied insurance claims.

Not sure how your current policy would respond if something happened? Reach out to the experts at Mario’s Roofing for guidance. They’ll help you understand your options and work alongside your insurer to keep your home fully protected.

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What Is Special Loss Settlement on a Home Insurance Policy?

Posted on by cvargas

If your home is significantly damaged or completely destroyed, the last thing you want is confusion around how your insurance claim will be paid. One term that often catches homeowners off guard is Special Loss Settlement—especially if you own a mobile or manufactured home. So what is it, and how does it affect your payout after a major loss?

Let’s break it down.

What Is Special Loss Settlement?

Special Loss Settlement is a clause in some homeowners insurance policies that changes how your claim is paid if your dwelling is totaled or deemed beyond economical repair. This is not the standard method of loss settlement for most homes—it usually applies to:

  • Manufactured or mobile homes
  • Homes that meet specific size or structural requirements
  • Dwellings listed as the policyholder’s primary residence

If this provision applies to your policy, it overrides the typical Replacement Cost or Actual Cash Value settlement methods.

When Does Special Loss Settlement Apply?

This type of loss settlement kicks in only when your dwelling is either:

  • Completely destroyed, or
  • So extensively damaged that repairing it is not economically feasible

In those cases, your insurance company uses a unique formula to determine how much they’ll pay out.

How Is the Payout Calculated?

Under the Special Loss Settlement provision, the insurer calculates three different values and pays you the lowest of them:

  1. Replacement Cost
    The full cost to rebuild your home using materials of like kind and quality—without accounting for depreciation.
  2. 1.5x the Actual Cash Value (ACV)
    ACV is the value of your home after depreciation (due to age, wear, etc.). The policy multiplies this by 1.5 as a cap on the payout.
  3. Your Policy’s Dwelling Limit
    This is the maximum amount listed on your policy’s Declarations Page for the building coverage.

Whichever amount is lowest becomes the payout amount.

A Real-World Example

Let’s say your mobile home is destroyed in a fire. Here’s how the numbers might look:

  • Replacement Cost: $120,000
  • Actual Cash Value (ACV): $70,000
  • 1.5 x ACV: $105,000
  • Policy Limit: $110,000

The lowest of those three figures is $105,000, so that’s what the insurer will pay.

Why This Matters

Special Loss Settlement can significantly impact your payout, especially if your home has depreciated in value or is underinsured. That’s why it’s critical to:

  • Understand your policy’s loss settlement terms
  • Ask your agent if Special Loss Settlement applies to your home
  • Review your coverage limits to ensure you’re not underinsured

Want to Learn More?

  • FEMA provides more technical guidance on loss settlement terms right here.
  • AARP also offers a helpful explainer on loss settlement options for mobile homes in this article.

Talk to Someone Who Understands Your Needs

At Vargas & Vargas Insurance, we specialize in helping homeowners understand what’s actually covered in their policies—before a disaster strikes. If you’re unsure whether Special Loss Settlement applies to your mobile or manufactured home, or if you simply want to review your current coverage, we’re here to guide you every step of the way.

📞 Call the Vargas & Vargas Insurance team today at 617-298-0655 for a personalized review and expert advice you can trust.

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Should You Buy Insurance for Your Rental Car? 4 Must-Know Reasons

Posted on by cvargas

Why is rental car insurance so confusing?

Have you ever stood at a car rental counter, keys nearly in hand, only to freeze when asked: “Would you like to add insurance to your rental?” If you’ve felt unsure or pressured in that moment, you’re not alone.

What happens if you say no—and something goes wrong?

Most drivers assume their personal auto policy or credit card coverage is enough. But when the unexpected happens—like an accident or damage—surprise costs and uncovered claims can ruin your trip and your wallet.

Here’s what you’ll learn in this article.

We’re going to break down the four key reasons why purchasing rental car insurance might be one of the smartest travel decisions you make. From financial protection to peace of mind, we’ll help you determine when it’s worth saying yes at the counter.

1. Your Personal Auto Insurance Might Not Fully Cover You

Rental cars aren’t always fully protected under your personal policy.

While your personal auto insurance may extend some coverage to rentals, it often excludes:

  • Loss of use fees (charged when the rental car is out of service)
  • Diminished value (loss in resale value after an accident)
  • Administrative or towing fees

And if you don’t carry collision or comprehensive on your own vehicle, you likely won’t have that coverage for a rental either.

2. Credit Card Coverage Can Be Limited or Conditional

Relying on your credit card benefits? Read the fine print.

Many credit cards offer secondary rental coverage, meaning it only kicks in after your personal insurance is exhausted. Some even require you to decline the rental agency’s insurance and pay for the rental in full with the card to qualify.

Credit card policies may also exclude:

  • Luxury or exotic vehicles
  • Rentals over a certain duration (e.g., 15+ days)
  • Travel outside your home country

3. You’re Financially Responsible for Every Inch of That Car

Even minor damage can come with a major bill.

From cracked windshields to door dings in the parking lot, rental car companies will pass every cost on to you. This includes labor, downtime, and administrative costs—not just parts.

Purchasing the rental company’s coverage means they waive those charges entirely, leaving you free to focus on your trip, not the paperwork.

4. Peace of Mind While Traveling Is Worth It

Vacations should be stress-free—not legal and financial puzzles.

If you’re traveling out of state or internationally, the laws, liabilities, and logistics become more complicated. Purchasing insurance directly through the rental agency offers clear terms and often quicker resolutions in the event of an accident.

So, Is Buying Rental Car Insurance Worth It?

If you:

  • Don’t carry full coverage on your personal vehicle
  • Don’t want to risk high out-of-pocket costs
  • Are traveling for business or internationally
  • Simply want peace of mind during your trip…

Yes, rental car insurance is often worth the investment.

What to Do Next

If you’re unsure whether your current auto insurance covers rentals—or how much coverage you actually need—we can help.

Schedule a quick coverage review with one of agents. We’ll explain what’s included in your policy, what’s not, and help you make confident decisions before your next trip.

 Contact Us Today for a Free Auto Insurance Review »

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Does Umbrella Insurance Cover Claims Not Offered by Your Standard Policy?

Posted on by agentinsure

If you’re considering umbrella insurance for personal or professional reasons, you likely understand that it serves as a safety net, providing additional coverage when damages exceed the limits of your standard insurance policy. However, there may be aspects of umbrella insurance that you’re unsure about, such as whether it covers incidents not included in your standard policy. Let’s explore what umbrella insurance can achieve and how Vargas & Vargas Insurance in Dorchester, MA, can help you find the right coverage.

Does Umbrella Insurance Cover Incidents Your Standard Policy Won’t?

It might surprise some to learn that umbrella insurance doesn’t just offer additional coverage—it can also provide protection in situations where your standard insurance policy falls short. For example, if you’re using umbrella insurance to supplement your auto insurance policy, you might expect it to help cover excess damages. However, umbrella insurance can also offer coverage for unique circumstances that your auto insurance won’t address.

Imagine you’re involved in an auto accident and later become a victim of libel, slander, or defamation of character related to the incident. Your auto insurance provider won’t cover these legal issues, but umbrella insurance can step in to provide support for lawsuits involving libel, slander, or defamation. Before securing a policy, it’s important to understand how umbrella insurance can protect you and to strategize for unexpected developments.

Find the Right Umbrella Insurance with Vargas & Vargas Insurance

At Vargas & Vargas Insurance in Dorchester, MA, we make it simple to shop for umbrella insurance. Request a quote today and get the coverage you need!

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Understanding Non-Renewal of Home Insurance: What You Need to Know

Posted on by cvargas

At Vargas & Vargas Insurance, we help Massachusetts homeowners navigate the complexities of cancellation or non-renewal with confidence—offering solutions, options, and support when it’s needed most.

What Is a Cancellation or Non-Renewal?

A cancellation or non-renewal happens when your insurance company decides not to continue coverage once your current policy expires. Unlike a cancellation (which occurs mid-term), non-renewal happens at the end of the policy term and gives you time to find new coverage.

How Non-Renewal Differs from Cancellation

  • Cancellation: Happens before the policy ends. Common reasons include missed payments or misrepresentation.
  • Non-Renewal: Occurs at the policy’s expiration. This may be due to increased risk, underwriting changes, or business strategy shifts.

Common Reasons for Non-Renewal

  • Vacant home for extended periods
  • Multiple claims history
  • Poor credit or late premium payments
  • Unresolved underwriting issues (e.g., repairs)
  • Property in disrepair
  • High-risk location (e.g., coastal or wildfire zones)
  • Carrier capacity changes
  • Loss of agency’s contract with the insurer
  • Liability hazards (e.g., trampolines, certain dog breeds)

What Should You Do After a Non-Renewal?

Here are key steps you can take to protect your home and secure new insurance:

✅ Shop Around

Get quotes from multiple carriers to compare your options.

✅ Be Transparent

Make sure your application information is complete and accurate to avoid delays or denials.

✅ Bundle Policies

Combining your home and auto insurance can lead to significant discounts.

✅ Work with an Independent Broker

At Vargas & Vargas Insurance, we represent multiple carriers and specialize in finding coverage—even for hard-to-place or high-risk properties.

📞 Need help right away? Call us at (617) 298-0655
📄 Or request your quote here »

Insurance Options for Hard-to-Place Properties

Massachusetts FAIR Plan

The Fair Access to Insurance Requirements (FAIR) Plan offers basic property insurance for homes that can’t get standard coverage. FAIR Plans are helpful for:

  • Coastal or storm-prone properties
  • Homes in disrepair
  • Those with multiple claims

⚠️ Note: FAIR Plan coverage is limited and may carry higher premiums.

Surplus Lines Insurance

This option is for properties with unique risks like:

  • High-value or custom-built homes
  • Homes with unusual materials
  • Remote or high-risk locations

Surplus lines carriers are non-admitted, meaning they’re not licensed in the state and don’t offer the same consumer protections—but they can often provide flexible coverage when no one else will.

Top 5 FAQs About Insurance Non-Renewals

1. Can I Appeal a Non-Renewal?

Sometimes. Review your policy and ask your broker if an appeal is possible.

2. Will It Affect My Ability to Get Insurance?

It could. Non-renewal may raise red flags for other carriers, but working with an independent broker helps you find new options.

3. What If I Can’t Find New Insurance?

Explore all options, including FAIR Plans or surplus lines. A specialist broker can guide you to the right fit.

4. Will It Impact My Mortgage or Escrow?

It shouldn’t, as long as you maintain continuous coverage. If you let your coverage lapse, your lender could step in with a costly force-placed policy.

5. Are There Alternatives to Standard Homeowners Insurance?

Yes. Surplus lines and FAIR Plans offer alternatives, and some carriers specialize in covering specific risks, like coastal exposure or certain pet breeds.

Final Thoughts

A home insurance non-renewal can feel overwhelming, but it doesn’t mean you’re out of options. By understanding the process and working with a knowledgeable agency like Vargas & Vargas Insurance, you can find coverage that protects your home—and your peace of mind.

👉 Request a free quote now
📞 Or call us at (617) 298-0655 for personalized support.

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Why Is My Neighbor Paying Less for Home Insurance?

Posted on by cvargas

It’s often said that comparison is the thief of joy. But when it comes to comparing home insurance premiums, it’s understandable to feel frustrated—especially if your neighbor is paying significantly less than you are for what seems like the same coverage.

Before jumping to conclusions, it’s important to understand the many factors that influence the cost of a homeowners insurance policy—some of which may not be immediately obvious.

At Vargas & Vargas Insurance, we know that price matters—especially in today’s economic climate. That’s why our team works hard to help clients get the right coverage at the best value, without cutting corners on protection.

Let’s explore why your neighbor’s rate may be lower, what truly affects the price of home insurance, and how you can potentially save on your own policy.

Why Am I Paying More Than My Neighbor?

Even homes that look identical on the outside can vary drastically in how they’re rated for insurance.

Why? Because:

  • Each home’s details and risk exposures are different
  • Insurance carriers use different formulas and pricing models
  • Your neighbor may have lower coverage limits or fewer endorsements (and may be underinsured!)

So, while your neighbor might be enjoying a lower premium, they could also be missing important protections that you do have.

What Factors Influence the Cost of Home Insurance?

Here are some of the most common reasons your rate might be higher than someone else’s:

1. Coverage Limits

Higher limits = higher premiums.
Your policy likely includes coverage for:

  • Dwelling (your home’s structure)
  • Personal property
  • Other structures
  • Loss of use
  • Personal liability
  • Medical payments

If your neighbor chose lower limits, their policy may cost less—but at the risk of not being fully protected.

2. Deductible Amount

This is the amount you pay out of pocket before insurance kicks in.

  • Lower deductible = higher premium
  • Higher deductible = lower premium

You may be paying more simply because you opted for a lower deductible for better peace of mind.

3. Home Exposures

Your property might include features your neighbor’s doesn’t, such as:

  • A pool or hot tub
  • Trampolines or playgrounds
  • Detached garages or sheds
  • Solar panels
  • A specific dog breed
  • Home-based business

Each of these adds potential liability or repair risk, which can increase your rate.

4. Insurance Carrier

Every insurance company uses a unique rating system. That’s why two identical homes can get two very different quotesfrom different carriers.

At Vargas & Vargas Insurance, we’re independent agents—meaning we shop across multiple top-rated insurers to find the best fit for your needs and budget.

5. Endorsements and Add-Ons

Optional coverages like:

  • Water backup
  • Extended replacement cost
  • Cyber coverage

These “bells and whistles” are often excluded from cheaper policies but can significantly improve protection. If you’ve added them, your policy will cost more—but you’ll also be better covered in a loss.

6. Past Claims

If you’ve had previous claims, you may be rated as a higher risk. This can result in higher premiums—even if your neighbor hasn’t filed a claim at all.

7. Other Property Details

Things like:

  • Age of the home
  • Location and local risk factors (crime, wildfire, flood zone)
  • Square footage
  • Type of construction materials

All play a role in determining risk and pricing.

How Can I Save Money on My Homeowners Insurance?

Let’s talk strategy. While you shouldn’t sacrifice essential coverage, there are several smart ways to lower your premium:

✅ Bundle Your Policies

Most carriers offer 5–25% off if you bundle home and auto insurance together.

✅ Raise Your Deductible

If you can afford to pay more out of pocket in the event of a claim, a higher deductible can mean lower monthly premiums.

✅ Set Up EFT/ACH Payments

Automating your payments or paying upfront can reduce fees.

✅ Go Paperless

Opting for email billing can save you a small—but consistent—amount.

✅ Apply All Available Discounts

You may qualify for savings based on:

  • Security systems
  • Water leak detectors
  • Automatic shut-off systems
  • Recent home purchases
  • Non-smoking household
  • Being over age 55
  • Generator installation
  • Early quoting

You’re Not Alone—And You Have Options

No one likes to feel like they’re overpaying—especially when your neighbor boasts about a better deal.

But now that you understand what really drives the cost of home insurance, you can make confident decisions about your own policy. If you’ve already implemented savings strategies and still feel your rate is too high, it might be time to compare quotes across providers.

The good news? We can help with that.

📞 Get a Personalized Quote from Vargas & Vargas Insurance

Our team is here to make insurance easier—and more affordable—for Massachusetts homeowners.

👉 Click here to request a quote now
📞 Or call us at 617-298-0655 to speak with an agent today.

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How Much Dwelling Coverage Do I Need for a Condo?

Posted on by cvargas

Condos offer the perfect mix of homeownership and convenience. According to the U.S. Census, one in five newly built multi-unit properties is a condominium. But while condo living has its advantages, figuring out how much dwelling coverage you need can be confusing.

Whether you’re a new condo owner or reviewing your current policy, Vargas & Vargas Insurance is here to help you understand what your HOA master policy covers—and what gaps you’ll need to fill with your personal condo insurance.

Types of Condo Master Policies

Before selecting your own coverage, it’s critical to know what the HOA’s master policy insures. The most common types are:

1. Bare Walls Coverage

This policy type covers only the unit’s structure—walls, floors, and ceilings. Everything inside (fixtures, appliances, finishes) is your responsibility.

2. All-Inclusive or Single-Entity Coverage

This broader coverage includes original, built-in elements like cabinetry, lighting, and standard appliances—but often excludes upgrades made by the owner.

⚠️ Even comprehensive HOA policies do not cover your personal property or custom improvements.

Why You Should Review Your HOA’s Master Policy

Ask for a full copy of your building’s master policy and bring it to a licensed insurance agent for review. Look for:

  • What’s included (walls, fixtures, built-ins)
  • What’s excluded (flooring, finishes, custom work)
  • Coverage limits (e.g., a $500,000 maximum per claim)
  • Whether there’s a reserve or emergency fund

If the HOA’s coverage is limited, you may need to extend your protection through your personal condo policy.

What Should Your Personal Condo Insurance Include?

Your individual condo (HO-6) policy should be designed to fill in the gaps left by the HOA’s master policy. Key components include:

  • Real Property (Interior) Coverage
  • Personal Property
  • Liability
  • Loss of Use
  • Medical Payments
  • Flood Insurance (optional but important)

Real Property (Interior) Coverage

This protects the permanent interior parts of your unit, including:

  • Flooring and carpet
  • Built-in cabinets and vanities
  • Light fixtures
  • Kitchen appliances

💡 Tip: If the HOA has a “bare walls” policy, you’ll need full coverage for all interior elements. If they offer all-inclusive coverage, you may only need protection for your upgrades.

Personal Property Coverage

This covers your belongings—furniture, electronics, clothes, décor, and more. Best practices include:

  • Taking a home inventory with an app or spreadsheet
  • Choosing replacement cost over actual cash value
  • Adding scheduled personal property coverage for high-value items (like jewelry or fine art)

Liability Coverage

This protects you if someone is injured inside your unit or if you’re held responsible for accidental property damage. It also typically includes dog bite liability, but some breeds may be excluded.

📌 Pro tip: Your liability coverage should match your total net worth to protect your assets in case of a lawsuit.

Loss of Use

If your condo becomes uninhabitable due to a covered event (like a fire or major water damage), this coverage helps pay for:

  • Hotel stays or temporary rentals
  • Meals
  • Additional living expenses

Medical Payments

This pays for minor medical expenses if a guest is injured in your condo—regardless of who was at fault.

Don’t Overlook Flood Insurance

It’s a common myth that condo owners—especially those on upper floors—don’t need flood insurance. But here’s the reality:

🚫 Standard condo insurance and HOA master policies do not cover flood damage.
This includes water from:

  • Storm surge or overflowing rivers
  • Surface water runoff from heavy rain
  • Groundwater seepage
  • Tidal or flash flooding

🌧 Flood insurance must be purchased separately through the National Flood Insurance Program (NFIP) or a private provider.

Even if you live on a higher floor, flood damage to lower-level infrastructure (like HVAC, electrical, or building-wide plumbing systems) can lead to special assessments—costs you might have to help pay if your building isn’t properly insured.

Additional Considerations

How to Calculate the Right Coverage

Follow these steps to make sure you’re not under- or overinsured:

✅ List all permanent fixtures and upgrades in your unit
✅ Inventory your belongings and estimate replacement value
✅ Total your assets to determine appropriate liability limits
✅ Review the HOA master policy carefully for exclusions
✅ Use a condo insurance calculator—or speak with an agent

Protect Your Condo with Confidence

Your condo is more than a place to live—it’s a major financial investment. At Vargas & Vargas Insurance, we help you understand what coverage you need, what your HOA handles, and how to fill the gaps with smart, affordable protection.

👉 Click below to get a free quote today
📞 Or call 617-298-0655 to speak to one of our experienced agents now.

Frequently Asked Questions

What is real property coverage in condo insurance?
It covers permanent interior fixtures and built-ins. It’s especially important if your HOA has a “bare walls” policy.

Do I need flood insurance if I live in a condo?
Yes, in many cases. Flooding can affect common infrastructure, and damage from external rising water is not covered under your standard condo policy.

How much personal property coverage should I carry?
Start by taking an inventory and estimating replacement cost. Be sure to add coverage for high-value items if needed.

What’s the difference between actual value and replacement value?
Actual value accounts for depreciation; replacement value covers the cost to buy a new item today.

Can I be held liable if the HOA’s policy doesn’t cover enough?
Yes. If damage exceeds the HOA’s limits, unit owners may be assessed to cover the difference. Consider adding loss assessment coverage.

Shop for the Best Condo Insurance

It’s quick, easy, and local. Compare quotes from top-rated insurance companies—all in one place.

Get Your Free Quote Now →

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Does Insurance Cover a Broken Water Heater? Here’s What You Need to Know

Posted on by cvargas

When your water heater suddenly stops working, the first thing that hits—besides the cold water—is the cost. You’re staring at a hefty plumbing bill, wondering if your home insurance might cover the damage. It’s a fair question, especially since these types of breakdowns often happen with no warning.

Unfortunately, most homeowners don’t realize until they file a claim that standard insurance policies don’t cover everything. Specifically, mechanical breakdown and wear and tear are among the most common exclusions in a home insurance policy. That means if your water heater breaks because it’s old or simply failed, the repair or replacement cost likely falls on you.

In this article, we’ll break down what these exclusions actually mean, explain when water damage is covered, and outline the exact steps you should take if you think you might have a claim.

What Is a Mechanical Breakdown Exclusion in Insurance?

Most standard homeowners insurance policies exclude coverage for mechanical breakdown. That means if a part inside your water heater fails, the unit stops functioning, or the problem is due to internal wear, your policy will not pay for the repair or replacement.

This kind of exclusion is based on the principle that appliances and systems naturally age and deteriorate over time. Insurance is designed to cover sudden and accidental damage, not the eventual failure of things we expect to wear out.

What About Wear and Tear?

Wear and tear is another common exclusion. It refers to the expected deterioration of appliances and home systems through normal use. If your water heater stops working because it’s ten years old and a component wore out, that’s considered wear and tear—and your policy won’t help.

It’s frustrating, but it’s also standard practice across nearly all homeowners policies. These exclusions are clearly outlined in the fine print, which most people don’t read until there’s a problem.

When Is Water Damage Covered?

There’s a key distinction to understand: while your insurance won’t cover the broken water heater itself, it might cover the resulting damage if water escaped and caused harm to your home or belongings.

If the broken heater leaked and damaged your:

  • Floors or carpeting
  • Walls, ceilings, or baseboards
  • Furniture or electronics
  • Personal belongings stored nearby

…then you may have a valid water damage claim under your policy’s “sudden and accidental discharge of water” clause. You would still be responsible for your policy’s deductible, but the damage could be covered.

It’s important to act quickly. The longer you wait, the more likely your insurer may argue the damage was due to neglect or delayed maintenance.

What Should You Do If You Think You Have a Claim?

To give yourself the best chance of claim approval, take these steps immediately:

  1. Photograph all visible damage — floors, walls, belongings.
  2. Create an inventory list — include descriptions, values, and purchase dates of all affected items.
  3. Locate receipts, manuals, or original product documentation if available.
  4. Keep a written journal of events — when the water heater failed, when you discovered the damage, who you spoke with, and what was said.

This kind of documentation is crucial. It helps your insurance adjuster understand the scope of the loss and strengthens your claim file.

What Does It All Mean for Homeowners?

Here’s the short version:

  • ✅ Covered: Damage caused by escaping water (flooded floors, ruined belongings)
  • ❌ Not covered: The broken water heater itself or any repairs related to age or wear

Always read your insurance policy carefully, or talk with your agent to clarify what’s included. If you aren’t sure whether you’re covered, it’s better to ask early than find out too late.

Conclusion: Know the Limits—And Your Next Move

Most homeowners only learn about exclusions like mechanical breakdown and wear and tear after a problem happens—and by then, it’s already too late to prevent out-of-pocket expenses. Your policy likely won’t cover the failed water heater, but if it caused water damage, that part of the loss may still be covered.

Now that you understand how these exclusions work, your next step is to document everything thoroughly and contact your insurer to report the loss. Being prepared could make the difference between a denied claim and a check that helps you recover.

If you’re unsure about what qualifies or how to navigate the claim process, we’re here to help. Our team has been helping homeowners and businesses for over 45 years and we have seen it all and can walk you through your options. Our team can be reached via a call to 617-298-0655, a text to 617-409-0329 or an email to customerservice@vargasinsurance.com

Want to be fully prepared before filing a claim?
Check out: “How to File An Insurance Claim Like A Pro”

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What Is the Difference Between Admitted and Non-Admitted Insurance Carriers?

Posted on by cvargas

When you’re shopping for insurance, it’s easy to get overwhelmed by the number of coverage options available. But sometimes, your challenge isn’t too many choices—it’s too few. If you’ve been labeled “high risk” or have unusual insurance needs, you may find that standard insurance companies won’t cover you.

That’s where non-admitted insurance carriers come in.

At Vargas & Vargas Insurance, we frequently help individuals and businesses who’ve been declined by traditional insurers find the coverage they need—often through non-admitted carriers.

So, what exactly are non-admitted carriers? How are they different from admitted ones? And most importantly, are they the right fit for your needs?

Let’s break it all down.

What Is the Difference Between Admitted and Non-Admitted Carriers?

The key difference lies in state regulation and oversight.

  • Admitted carriers are licensed by the state’s Department of Insurance and must follow strict regulations around pricing, policy language, and claims handling.
  • Non-admitted carriers are not licensed in the state but are legally allowed to operate under surplus lines rules, offering coverage for risks that admitted carriers typically avoid.

What Are Admitted Carriers?

Admitted insurance carriers are state-licensed providers. This means their policies, rates, and business practices are reviewed and approved by your state’s Department of Insurance.

Advantages of Admitted Carriers:

  • Stronger consumer protections: You can appeal a claims decision with your state’s insurance department.
  • Access to state guaranty funds: If the carrier becomes insolvent, your claims may still be covered (typically up to $500,000).
  • Standardized policy terms: Good for common coverage needs like personal auto or homeowners.

Disadvantages:

  • Limited underwriting flexibility: If you’re considered high-risk (e.g., flood zone property, prior claims, coastal location), they may decline to insure you or quote a very high premium.

What Are Non-Admitted Carriers?

Non-admitted carriers—also called surplus lines insurers—are not licensed by the state, but they are allowed to provide coverage for unique or high-risk situations that standard carriers won’t touch.

They aren’t subject to the same regulations as admitted carriers, giving them more flexibility in how they design coverage.

Advantages of Non-Admitted Carriers:

  • Broader coverage options: Ideal for properties in wildfire-prone areas, coastal zones, or with unique construction.
  • Custom policy solutions: Better suited for insuring niche businesses or unusual liability risks.

Disadvantages:

  • Fewer consumer protections: You cannot appeal claim decisions with your state, and policies are not backed by the state guaranty fund.
  • Higher premiums: These carriers typically insure higher-risk scenarios, so costs are often greater.

Examples of Non-Admitted Insurance Carriers

If you’ve been declined by a standard insurer, your agent might explore policies from non-admitted carriers. Here are a few common and reputable options:

  • Lloyd’s of London – An international market for insuring highly specialized or high-value risks.
  • Scottsdale Insurance (a Nationwide company) – Offers tailored E&S coverage for hard-to-place property and liability needs.
  • Kinsale Insurance – Specializes in excess and surplus lines, including vacant properties, cyber liability, and more.
  • Weston Insurance – Often used in coastal regions for wind, hurricane, or storm surge coverage.
  • Markel – Surplus Lines Division – Known for covering niche industries and nonstandard risks.

These companies help fill coverage gaps where admitted carriers fall short. However, since their policies are not regulated by the state, it’s critical to review all terms carefully and work with an experienced agent.

So, Which Is Right for You?

If your insurance needs fall into a conventional category and you’re not viewed as high-risk, an admitted carrier will likely offer the protection—and consumer safeguards—you’re looking for.

But if you’ve been turned away by standard insurers, a non-admitted carrier might be your only (and best) option. This is particularly true if your property is in a flood zone, near a coastline, or you operate a business with unusual exposures.

Either way, you have options—and we can help you explore them.

Let’s Talk About Your Coverage Options

At Vargas & Vargas Insurance, we believe everyone deserves access to clear, honest guidance—especially when navigating complex or high-risk insurance scenarios. Whether you’re considering admitted or non-admitted carriers, we’ll help you understand the risks, costs, and coverage details so you can make a confident decision.

Have questions? Need help finding the right policy? Contact our team today.

Still having trouble insuring your home? You might need FAIR Plan Insurance. Learn what this state-backed coverage offers and whether it’s right for you, click here.

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Are You Protected If Someone Sues You for What You Said, Not What You Did?

Posted on by cvargas

Does your homeowners insurance protect you if someone slips on your porch?
Yes — that’s usually covered. But what about if someone sues you for something you posted online? Or for something you said in passing?

What happens if a neighbor, a stranger, or even a business claims you’ve damaged their reputation — and takes legal action?
That’s where most standard homeowners policies fall short.

What Is Personal Injury Liability Coverage — and Why Should You Care?

In this post we’ll explain exactly what personal injury liability coverage is, how it works, and why it matters more now than ever — especially in the digital world we all live in.

You’ll walk away knowing:

  • What types of legal claims this coverage protects against
  • Real-life examples of how lawsuits happen
  • How to find out if your policy includes it — and how to add it if it doesn’t

Wait — Isn’t Personal Injury Covered in Homeowners Insurance?

Not always. And definitely not in the way most people think.

When most people hear “personal injury,” they think physical harm — broken bones, a trip on your sidewalk, a dog bite. That’s covered under bodily injury liability, which is a standard part of most homeowners insurance policies.

But legal harm, like defamation or false arrest? That’s a completely different coverage — and it’s called personal injury liability.

And here’s the kicker: many policies don’t include it by default. You usually have to request it as an endorsement or rider.

Here’s What Personal Injury Liability Actually Covers:

This type of coverage helps protect you financially if you’re sued for:

  • Libel (written defamation, like a social media post or a bad online review)
  • Slander (spoken defamation — even casual conversation or a joke taken the wrong way)
  • False arrest or wrongful imprisonment
  • Wrongful eviction or entry
  • Invasion of privacy

And yes — these types of lawsuits really happen. A heated online argument. A bad review that someone claims hurt their business. A neighborhood dispute that escalates. These are all real examples of what can lead to expensive legal claims.

What Happens If You’re Sued?

Without personal injury liability on your policy? You’re likely paying out of pocket — for:

  • Attorney fees
  • Court costs
  • Damages or settlements

That can easily add up to tens of thousands of dollars — even if the claim is completely groundless.

But with this endorsement on your homeowners policy?
You may be covered for: ✅ Legal defense costs
✅ Settlement or court judgments
✅ Other related expenses

Why This Matters Now More Than Ever

We’re all online — and fast to comment, post, and review.
But the truth is, one careless comment, one viral post, or one misunderstanding could land you in serious legal trouble.

In today’s world, it’s not just what you do — it’s what you say and share that could lead to a claim.

That’s why we recommend every homeowner have personal injury liability coverage as part of their policy.

Want to Know If You’re Covered?

Not sure if your policy includes this protection?
That’s where we come in.

At Vargas & Vargas Insurance, we’ve been helping Massachusetts families get the right coverage — and avoid hidden gaps — for over 45 years.

📞 Call us today at 617-298-0655
💬 Text us at 617-409-0329
📩 Or email us at quotes@vargasinsurance.com

We’ll review your current homeowners policy, explain what’s included, and help you decide whether personal injury liability coverage makes sense for your situation.

🎯 One conversation today could save you thousands tomorrow.

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The Secrets to Lowering Your Massachusetts Home Insurance Costs

Posted on by cvargas
The Secrets to Lowering Your Massachusetts Home Insurance Costs

Do you own an older or historic home in Massachusetts?
Are you sure your current insurance policy is giving you the right protection—without costing you more than it should?

Homeowners across the state are surprised to learn that standard home insurance often doesn’t account for the unique challenges of older properties. In this blog, we’re going to fix that.

Here’s what you’ll learn:
You’ll discover what makes Massachusetts homes special from an insurance perspective, which coverages you absolutely need (especially if your home was built before 1940), and a few smart ways to save hundreds on your premium.

What Makes Massachusetts Homes Unique

Massachusetts has some of the oldest housing stock in the country. In fact, over 30% of homes statewide—and nearly 50% in the Boston area—were built before 1940. That means they may have unique architecture, aging infrastructure, or outdated building codes.

Older homes like triple deckers, properties near the coast, or homes in neighborhoods like Beacon Hill, Charlestown, the South End, and the Back Bay require more than just standard home insurance—they need specialized coverage that takes these features into account.

Key Insurance Coverages You Need

To fully protect your older or historic Massachusetts home, your policy should include:

  • Personal Property Replacement Cost Coverage
    This ensures you’re reimbursed for new, undepreciated items if your personal belongings are lost.
  • Water Backup & Sump Pump Failure Rider
    A must-have if you have a finished basement—it covers damage standard policies don’t.
  • Ordinance or Law Coverage
    This rider helps pay for reconstruction that must follow current building codes, including demolition and required upgrades after a major loss.
  • HO-5 Endorsement (805.8)
    Especially valuable in historic areas, this can increase your dwelling coverage by 25%, 50%, or even 100% to reflect the true value of restoring older homes.

How to Save Money on Home Insurance

Just because you need better protection doesn’t mean you have to overpay. Here are a few ways to reduce your premiums:

  • Install a central-station monitored alarm system
    This alone can save you 10–20% on your policy.
  • Add water leak detectors and hardwired smoke alarms
    Insurers reward proactive risk reduction.
  • Bundle your home and auto policies
    A multi-policy discount is often one of the biggest savings available.
  • Raise your deductible
    Going from a $500 to a $2,500 deductible can save you over $500/year on a $500,000 home.
  • Consider flood insurance—even if you’re not near water
    Standard policies don’t cover flood damage. The good news? Flood coverage for homes outside a federally mandated flood zone can cost less than $500/year.

What Does the Average Home Insurance Policy Cost in Massachusetts?

The average annual premium is about $1,500, but what you’ll actually pay depends on your home’s age, location, condition, security features, and the coverage levels you choose.

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Get a Free Policy Review Today

Every home is different—especially in Massachusetts. Our experienced team can walk you through your current policy, spot any coverage gaps, and help you find discounts you may be missing. No pressure. No obligation. Just honest guidance.

🎥 Watch the video below to hear the full breakdown and see if your home is properly protected:

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And if you know someone buying or owning an older home in Massachusetts, feel free to share this with them—we’re always here to help.

📞 Call our team at Vargas & Vargas Insurance today at (617) 298-0655 for a free, no-obligation insurance review. We’re ready to help you protect your home—and your peace of mind.

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What to Do When Your Insurance Agent Retires or Sells Their Agency

Posted on by cvargas

😟 What happens when the agent who’s always handled your insurance suddenly retires or sells their agency?

Have you received a letter or email letting you know your trusted insurance agent is stepping away?
It can feel unsettling—after all, this was the person who knew your needs and had your back when life threw surprises your way.

What should you do now to make sure your coverage—and service—stay strong?
In this article, we’ll walk through your options, how to keep your current policies, and when it’s time to consider switching to a new agent.

Let’s break it down—quickly and simply.

✅ Your Policy Is Still Safe

Good news! Your insurance contract is with the carrier, not the agent—so your coverage continues as long as you keep paying your premiums. 🏠🚗

🔄 But Your Agent Will Change

In most cases, your account is reassigned to another agent or service team. Some insurers may even move you to a self-service model. That’s where issues can start:

  • Less personal service
  • Longer wait times
  • Unfamiliar communication style
  • Missed reviews or updates

🛠️ What Can You Do?

Here are your top options:

  1. Give the new agent a chance — Evaluate their service over the next 30–60 days.
  2. Call the new agency — Ask how they handle renewals, claims, and client communication.
  3. Keep your carrier, switch agents — Contact your insurance company and request to work with a different agent.
  4. Find a new local independent agent — Especially helpful if you want personalized service and more carrier options.

💬 Why Clients Choose to Switch Agents

  • Poor service or communication
  • Limited availability
  • Lack of insurance knowledge
  • Personality mismatch
  • You’ve relocated

This is your chance to get the support and service you really want.

🧠 Tip: Now’s a Great Time for a Policy Review

  • Are you overpaying?
  • Missing discounts?
  • Covered for the right risks?

A trusted agent will help you reassess and improve your protection.

🧭 Vargas & Vargas Insurance Is Here to Help

If your agent just retired or sold their agency, don’t feel stuck. Vargas & Vargas Insurance—your local independent insurance broker—is ready to step in and provide the personal, knowledgeable service you deserve. ✅

Let’s make your transition simple—and your coverage even stronger.

👉 Reach out today for a free policy review or agent transfer consultation.

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Do You Have a Finished Basement or a Sump Pump? You Might Be Missing This Critical Coverage

Posted on by cvargas

Does your home have a finished basement?
Do you rely on a sump pump to keep things dry during storms or snowmelt?

If so, there’s something you need to know: your standard homeowners insurance policy likely won’t cover water damage from sewer or drain backups.

In this quick-read blog, we’ll explain the difference between water damage and water backup, what your policy probably covers (and what it doesn’t), and how you can add a simple endorsement to fill this risky gap.

🚿 Not All Water Damage Is Treated the Same

When it comes to insurance, water damage and water backup are not the same thing.

Here’s the difference:

  • Water damage typically refers to a sudden event inside your home, like a burst pipe, leaking appliance, or damaged roof.
  • Water backup refers to water coming into your home from outside sources — like a sewer line, drain, or failed sump pump.

Standard home insurance policies usually cover the first — but not the second.

That means if sewage or groundwater floods your finished basement due to a sump pump failure or clogged drain, you could be left paying for repairs out of pocket.

💧 What Is Water Backup Coverage?

Water backup coverage is an add-on endorsement you can include in your homeowners insurance policy. It’s designed to cover damage caused by water that backs up through sewers, drains, or sump pumps.

Why is it so important? Because these events:

  • Are more common than people think — especially during heavy rains or power outages
  • Can cause expensive damage, especially to finished basements, flooring, furniture, and electrical systems
  • Are not considered “sudden accidental discharge” — and are explicitly excluded from many standard policies

🛑 Don’t Wait Until It’s Too Late

Unfortunately, most people only learn about this gap in coverage after their basement floods — and by then, it’s too late to add it.

Even worse? If you’ve invested in a finished basement, water backup could mean thousands of dollars in out-of-pocket repairs, mold risk, and damage to sentimental items.

✅ What You Can Do Right Now

The good news? Water backup coverage is easy to add and often very affordable.

Here’s what we recommend:

  1. Check your current policy to see if water backup is included. (It usually isn’t by default.)
  2. If you have a sump pump, finished basement, or any plumbing near lower levels, strongly consider adding it.
  3. Talk to us. We’ll explain the exact cost and coverage options — in plain English — and help you protect your home the smart way.

Need Help Reviewing Your Coverage?

At Vargas & Vargas Insurance, we’ve been helping Massachusetts homeowners understand their policies — and protect what matters most — for over 45 years.

📞 Call us today at 617-298-0655
💬 Or visit vargasinsurance.com

Not sure if your policy includes water backup coverage? We’ll review it with you — no pressure, just honest advice.

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5 Home Insurance Mistakes That Could Cost You Big!

Posted on by cvargas

Think you’re fully protected just because you have homeowners insurance?
Would your policy really cover you the way you expect if disaster hit tomorrow?

You’re not alone if you’re unsure. Many people assume they’re covered for anything that could go wrong. The truth? Most homeowners are underinsured — and don’t even realize it until it’s too late.

In this blog, you’ll learn the top 5 mistakes people make when buying homeowners insurance — and how to avoid them. We’ll show you how to make smart, informed choices so your coverage actually protects your home and your finances.

❌ Mistake #1: Not Buying Enough (or the Right) Coverage

A lot of people think the amount they paid for their home is the amount they should insure it for. But that’s not how insurance works.

Here’s the issue:

  • Home values change.
  • Construction costs go up.
  • If your home burns down or gets severely damaged, you need enough replacement coverage to rebuild it — not just repay your mortgage.

Don’t fall into the “cheapest quote” trap. A cheaper policy might leave you underinsured when it matters most.

✅ What to Do Instead:

  • Insure your home for its replacement cost, not its purchase price.
  • Review your policy every year, especially after renovations.
  • Work with an independent agent who can help you compare policies and tailor coverage to your real needs.

❌ Mistake #2: Not Knowing What Your Policy Doesn’t Cover

It’s easy to assume insurance covers everything. But that’s just not true. In fact, standard homeowners policies have exclusions that might surprise you.

Some common things not covered:

  • Flooding
  • Earthquakes
  • Sewer backups
  • Mold or foundation damage
  • High-value items like jewelry or art
  • Poor maintenance (like a leaking roof you ignored for months)

✅ What to Do Instead:

  • Ask questions. Know what’s covered and what isn’t.
  • Consider extra coverage for floods, valuables, and water backup.
  • Remember: homeowners insurance is not a maintenance plan — it won’t cover wear and tear or neglect.

❌ Mistake #3: Not Shopping Around

Getting one quote is quick, but it’s also risky. You could end up with:

  • Higher premiums
  • Poor claims service
  • Gaps in coverage you don’t see until it’s too late

Every insurance company prices differently — and not all offer the same benefits.

✅ What to Do Instead:

Let Vargas & Vargas Insurance shop for you.
We compare quotes from many top-rated carriers so you get options — and expert help choosing the best fit for your needs.

❌ Mistake #4: Not Updating Your Policy Over Time

Your home changes. Your life changes. Your insurance should change too.

If your policy is outdated, it may not reflect:

  • Renovations or home upgrades
  • New valuables (like electronics, collectibles, or jewelry)
  • Safety features (like a new alarm system)
  • Liability risks (like a trampoline or swimming pool)

✅ What to Do Instead:

  • Review your policy once a year.
  • Call your agent when anything major changes.
  • We’ll help you adjust your coverage — no pressure, just smart protection.

❌ Mistake #5: Ignoring Discounts and Bundling Opportunities

You might be paying more than you need to — simply because you didn’t ask about discounts.

Common savings opportunities:

  • Bundling your home and auto insurance
  • Installing security systems or smoke detectors
  • Raising your deductible
  • Staying claims-free for several years

✅ What to Do Instead:

  • Ask your agent to review all possible discounts.
  • We can help you find hidden savings that most people miss.
  • A short phone call could save you hundreds of dollars per year.

Final Thoughts: Make Smart Moves Now, Save Yourself Later

Homeowners insurance doesn’t have to be confusing — but it can cost you if you don’t pay attention.
Avoiding these 5 mistakes could save you thousands and give you real peace of mind.

Let’s recap:

✅ Don’t underinsure — know your home’s true replacement cost
✅ Understand what’s not covered
✅ Don’t settle for one quote — compare policies
✅ Update your policy as life changes
✅ Ask about discounts and bundling options

Need Help Reviewing Your Coverage?

At Vargas & Vargas Insurance, we’ve helped Massachusetts families protect their homes for over 45 years. We shop with multiple companies, break things down in plain English, and give honest advice — no pressure.

📞 Call us at 617-298-0655
💬 Visit vargasinsurance.com
✨ We welcome your referrals, too — thank you for trusting us.

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The Perfect Time to Get Home Insurance Nobody Tells You About?

Posted on by cvargas

As a real estate professional, you play a key role in ensuring your clients are set up for success—not just with their new home but also with proper insurance coverage. Below is a simple, actionable guide to help you support your home and condo buyers through the insurance process.

Recommend They Start the Insurance Process Early

Many buyers wait until the last minute to secure homeowners or condo insurance, which can lead to delays at closing. Encourage your clients to:

  • Request an insurance quote as soon as they go under contract
  • Compare coverage options and costs early
  • Share the necessary documents with their lender well before final underwriting

Key Information Buyers Will Need for an Insurance Quote

To generate an accurate quote, buyers should have the following:

  • Legal name that will appear on the deed
  • Property address
  • Date of birth
  • Current residential address
  • Pet information (certain breeds may impact policy eligibility)
  • Best contact phone number

Work with an Independent Insurance Broker

Independent brokers have access to multiple carriers and can:

  • Compare rates and find the best value
  • Customize coverage for unique properties
  • Assist with challenging cases like older homes, flood zones, or coastal areas

Our agency partners with top-rated insurance providers and helps homebuyers get the right coverage quickly and easily.

Ensure Buyers Understand the Coverage They Need

Many first-time buyers assume a basic homeowners policy is enough. Here are a few things they should consider:

  • Flood Insurance: Not included in standard policies. Required in flood zones.
  • Condo Master Policies: Buyers need to understand what’s covered by the condo association and what they’re responsible for.
  • Wind & Hurricane Deductibles: In high-risk coastal areas, these may require separate deductibles.

Pro Tip: If the home has an older roof (15+ years) or is in a high-risk area, coverage might be harder to obtain—or more expensive. Make sure buyers investigate this early.

Help Buyers Avoid Common Insurance Issues

Be sure your clients are aware of these often-overlooked situations:

  • Vacant Homes: May require a special policy until the buyer moves in.
  • Short-Term Rentals (Airbnb, VRBO): A standard homeowners policy won’t cover rental activity. Buyers need a landlord or short-term rental policy.
  • HOA Requirements: Some condo associations require specific liability limits. Buyers should confirm this before purchasing a policy.

Provide Buyers with a Trusted Insurance Contact

Instead of sending clients to shop on their own, connect them with an insurance expert you trust—someone who can walk them through the process and ensure nothing gets overlooked.

Need an insurance partner for your buyers?

We’re here to help. Send them our way, and we’ll take care of the rest.

Quotes Team
Vargas & Vargas Insurance
📧 Quotes@vargasinsurance.com
🌐 vargasinsurance.com

We work with top insurance carriers and specialize in helping home and condo buyers get the right coverage at the best rate.

By following these best practices, you can help ensure your buyers secure the right insurance coverage, avoid closing delays, and move into their new homes with peace of mind.

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