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Do You Have the Wrong Condo Insurance Policy?

Posted on by cvargas

Question 1: Are you sure your condo is insured the right way?

Question 2: Do you know whether your building has a master condo policy — or if you’ve been quoted homeowners (HO3) policy by mistake?

In this message, we’ll explain the difference between HO3 and HO6 policies, why it matters, and how to make sure you and your unit are fully protected.

If you live in a condominium (2 units or many units) your property must be insured under two policies:

  1. A Condo Master Policy (held by the association)
  2. An HO6 Condo Policy (carried by you, the unit owner)

But here’s where problems happen — especially during purchase or refinance:

Sometimes, a quote or existing policy is written as an HO3 (homeowners) policy, which is meant for standalone, single or multi family homes — not attached units like condos.

🚨 Why That’s a Problem:

  • An HO3 assumes you’re responsible for the entire building, including the roof, exterior, and other units — which isn’t true in a condo setting.
  • If your lender receives an HO3 instead of verifying a master condo policy + HO6, it could lead to closing delays, over-insurance, or coverage gaps.
  • Worse, if there’s a claim, you could end up paying for damage the master policy should have covered — or vice versa.

🛠️ The Right Setup:

If you’re in a condo:

  • The association has to carry a master condo policy (often referred to as a “walls-in” or “all-in” policy, depending on what’s covered).
  • You, the unit owner, should carry an HO6 condo policy to protect:
    • Interior walls and upgrades (if the master policy stops at bare walls)
    • Personal property
    • Loss of use (if you’re displaced)
    • Personal liability
    • Loss assessment from the condo association

⚠️ One More Thing:

Everything might seem fine — until it isn’t. The biggest risk with having the wrong policy (like an HO3 on a condo) is that you may not know it’s a problem… until you file a major claim.

At that point, the insurance company can deny the claim, stating that the wrong type of policy was in place for the property type. That means tens or hundreds of thousands of dollars in uncovered losses — all because the setup was wrong from the start.

Don’t let a paperwork mistake become a financial disaster. Let us review your policy now — not after a loss.

💡 Bottom Line:

If you’re living in or buying a condo and your policy says HO3, there’s a good chance it’s not the right fit.

Let Vargas & Vargas Insurance help you sort it out. We specialize in properly structuring condo insurance, whether you’re an owner, trustee, or part of a homeowners association.

📞 Let’s Make Sure You’re Covered Correctly:

Let’s eliminate confusion — and get you covered the right way the first time.

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Do I Need Extra Insurance If I Rent Out My Condo?

Posted on by agentinsure

Some people purchase condos in Dorchester, MA, as investment properties to rent out and generate income. If this is your situation, it’s important to take extra precautions when insuring your property. Vargas & Vargas Insurance can provide the advice you need to determine the best course of action for protecting your condo investment.

Standard Policies Don’t Suffice

Standard condo insurance policies are typically designed for owner-occupied properties. When you rent your condo to tenants, insurers often classify this as a business activity. As a result, standard condo insurance may not cover all risks, particularly those involving liability. For example, damage to your property caused by tenants or liability for injuries sustained by tenants or their guests may not be covered. While your condo association’s master policy provides coverage for common areas, it does not cover risks within your individual unit. To fully protect your investment, you should consider additional insurance options tailored to rental properties.

Options to Consider

If you rent out a condo, several insurance options can help you protect your investment:

  • Require Renter’s Insurance: Ask tenants to carry renter’s insurance before signing a lease. This protects their belongings and provides additional liability coverage.
  • Landlord Insurance or Rental Dwelling Coverage: These policies offer coverage for property liability risks and potential loss of rental income.
  • Loss Assessment Coverage: This helps cover special assessments if damage to common areas exceeds the condo association’s master policy limits.
  • Umbrella Insurance: Umbrella policies provide extra protection against medical claims and lawsuits after your primary policy’s limits are exhausted.

Discuss your condo insurance needs when renting your unit in Dorchester, MA. Contact the agents at Vargas & Vargas Insurance to get started on a policy that fits your situation.

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Homeowners Insurance Deductible: How to Choose the RIGHT Amount (Save Money!)

Posted on by cvargas

Question: Not sure if your homeowners insurance deductible is too high or too low?
Question: Are you paying more than you should each year just because you picked the “default” deductible?
In this article, you’ll learn how to choose the right homeowners insurance deductible based on your home, budget, risk level, and financial goals.
We’ll walk you through the different types of deductibles, show how they impact your premium, and help you confidently select the amount that saves you money without exposing you to unnecessary risk.

What Is a Homeowners Insurance Deductible?

A deductible is the amount you agree to pay out of pocket before your insurance company covers the rest of a claim. For example, if you file a claim for $10,000 in wind damage and your deductible is $2,000, your insurer would pay $8,000.

Deductibles apply to most property damage claims, including fire, storm, theft, and water damage (except flood — which requires separate coverage).

Types of Deductibles

There are two main types of homeowners insurance deductibles:

  1. Flat dollar amount – Example: $1,000 or $2,500
    ✅ Predictable, straightforward
    ✅ Common in most standard home policies
  2. Percentage-based deductible – Usually based on the home’s insured value
    Example: 2% of a $400,000 home = $8,000 deductible
    ⚠️ Often used in high-risk areas for wind/hurricane/hail

Pro tip: Some policies use both. For example, a flat deductible for fire/theft and a percentage for wind/hail. Be sure to read the fine print.

How Deductible Amount Affects Your Premium

This is where the math gets interesting — and where many homeowners leave savings on the table.

  • Higher deductible = lower premium
    You’re taking on more risk, so the insurer rewards you.
  • Lower deductible = higher premium
    You’re shifting more risk to the insurer, and paying for it.

Here’s a simplified example:

DeductibleAnnual Premium
$500$2,100
$1,000$1,850
$2,500$1,550

Over five years, the $2,500 deductible plan saves you $2,750 in premiums — more than one full deductible’s worth of savings.

Some insurance companies offer a $5,000 deductible, but the savings compared to a $2,500 deductible is often only around $125–$145 per year, which does not make it an attractive option.

How to Choose the Right Deductible for You

Here’s how to make a smart decision:

1. Know Your Emergency Fund

Could you comfortably cover a $1,000 or $2,500 surprise repair tomorrow? If yes, you can consider a higher deductible. If not, play it safe with a lower one — but prepare to pay more in premiums.

2. Evaluate Your Claims History

If you haven’t filed a claim in 10+ years and take great care of your home, you may benefit from a higher deductible. If you’ve had frequent claims or live in a high-risk area, a lower deductible may be the safer play.

3. Consider the Break-Even Point

How long would it take to “make back” the premium savings from a higher deductible? If you can go 5–10 years without a claim, the savings may be worth it.

4. Check for Percentage-Based Deductibles

Especially if you live in hurricane or wildfire zones, double-check if your wind/hail deductible is 1%–5% of your home’s value. That’s a BIG out-of-pocket cost.

Bonus Tip: Avoid Filing Small Claims

If your deductible is $1,500 and the damage is $2,000, you may want to avoid filing the claim altogether. Why?

  • You’ll only receive $500
  • You may lose a claim-free discount
  • Your premium may rise next renewal

High deductibles help you avoid these situations by making it easier to self-insure small losses and only file for large ones.

Key Takeaways

  • The deductible you choose directly affects how much you pay — both in premiums and claims.
  • Raising your deductible can save hundreds per year, but only if you have the funds to cover it when needed.
  • Be clear on whether you have a flat or percentage-based deductible, and how it applies to different types of claims.

Need Help Reviewing or Adjusting Your Deductible?

Vargas & Vargas Insurance can walk you through your current policy and help you run the numbers. We’ll show you what deductible makes sense based on your home, budget, and risk tolerance — no pressure, just honest advice.

👉 Click here to learn more or for a free policy review and make sure you’re not overpaying.

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Admitted vs. Non-Admitted Insurance Carriers: What You Need to Know

Posted on by cvargas

Have you been told your policy is with a “non-admitted” carrier and wondered if that’s a bad thing?

What does “non-admitted” even mean — and how does it affect your coverage?

In this article, we’ll break down the key differences between admitted and non-admitted insurance carriers and explain how it impacts your protection, pricing, and peace of mind.

You’ll learn the pros and cons of each type, when each is used, and which non-admitted carriers are among the most trusted in the industry.

What Is an Admitted Insurance Carrier?

An admitted insurance carrier is licensed and regulated by the Massachusetts Division of Insurance (or the insurance department in your state). These companies:

  • Must file their rates and policy forms with the state
  • Must follow strict consumer protection laws
  • Are backed by the state guaranty fund, which protects you if the company becomes insolvent

Benefits of Admitted Carriers:

  • Predictable pricing
  • Strong regulatory oversight
  • Access to financial safety nets through the state

What Is a Non-Admitted Insurance Carrier?

A non-admitted carrier (also called a surplus lines insurer) is not licensed by the state in the traditional way. However, they are allowed to write insurance legally when admitted carriers won’t offer coverage for certain risks.

These companies specialize in:

  • High-risk or hard-to-insure properties
  • Niche businesses or liability needs
  • Custom coverage not available from standard insurers

Key differences:

  • Not backed by the state guaranty fund
  • More flexibility in underwriting and pricing
  • Can offer solutions where others say no

💡 “Non-admitted” does not mean untrustworthy. These insurers are usually financially strong, highly rated, and regulated at the federal level.

Admitted vs. Non-Admitted: Quick Comparison

FeatureAdmitted CarrierNon-Admitted Carrier
Licensed by state?✅ Yes❌ No (but legally allowed)
Guaranty fund protection?✅ Yes❌ No
Rate regulation?✅ Yes❌ No
Coverage flexibility✅ Some Limitations✅ High
Use caseStandard risks (home, auto, business)High-risk or hard-to-place policies

Real-World Examples: USLI and PHLY

At Vargas & Vargas Insurance, we work with both admitted and non-admitted carriers to meet our clients’ unique needs. Here are two highly respected companies we work with regularly:

✅ U.S. Liability Insurance Company (USLI)

  • Status: Primarily admitted in Massachusetts
  • Use: Personal and commercial lines, with some non-admitted options in other states
  • Owned by: Berkshire Hathaway
    🔗 usli.com

✅ Philadelphia Insurance Companies (PHLY)

  • Status: Fully admitted in Massachusetts
  • Use: Specialized commercial policies (nonprofit, real estate, education)
  • Non-admitted use: Rare, mostly for niche risks
    🔗 phly.com

When Do We Use Non-Admitted Carriers?

We typically explore non-admitted markets when:

  • Your property is in a coastal or high-risk zone
  • You’re insuring a vacant, historic, or short-term rental property
  • You need specialized liability or commercial protection
  • You’ve been declined by standard carriers

In these cases, we turn to trusted surplus lines carriers that have a proven track record of insuring unique risks.

Top 5 Non-Admitted Insurance Carriers in the U.S.

Here are five of the most respected non-admitted carriers by market share and reputation:

  1. Lloyd’s of London – Global leader in specialty and surplus coverage
    🔗 lloyds.com
  2. Westchester Surplus Lines (a Chubb company) – Known for high-limit property and liability
    🔗 chubb.com
  3. Scottsdale Insurance (Nationwide E&S) – Flexible solutions for high-risk and non-standard risks
    🔗 nationwide.com
  4. AIG Specialty Insurance Company – Complex and large-risk personal and commercial policies
    🔗 aig.com
  5. Aspen Specialty Insurance Company – Custom property and casualty insurance for niche needs
    🔗 aspenspecialty.com

✅ These carriers are A-rated or better, financially strong, and commonly used by independent brokers like us to help clients secure specialized protection.

Final Thoughts: Which One Is Right for You?

Whether you’re placed with an admitted or non-admitted carrier, the most important thing is that you have:

  • The right coverage
  • With the right company
  • At the right price
  • Backed by a team that explains everything clearly

At Vargas & Vargas Insurance, that’s exactly what we do.

📞 Ready for a Clear, Personalized Quote?

Let’s make sure your policy isn’t just “good enough” — it’s the right fit.

📞 Call us at 617-298-0655
📱 Text us at 617-409-0329
🌐 Request a quote at VargasInsurance.com

We’ll walk you through your options from both admitted and non-admitted carriers — so you’re fully protected, fully informed, and never surprised.

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Replacement Cost vs. Actual Cash Value vs. Market Value: What’s the Real Value of Your Home Insurance?

Posted on by cvargas

You just bought your home for $675,000—so why is your insurance company saying it’s only worth $450,000?

Are they undervaluing your biggest investment, or is there something more going on?

This article will break down the three key values that determine how your home is insured: replacement cost, actual cash value, and market value—and why understanding the difference could save you thousands.

We’ll explain what each term really means, how it impacts your coverage, and how to choose the right approach for your situation.

What Is Replacement Cost Value?

Replacement cost value (RCV) refers to what it would cost to rebuild your home from the ground up, using the same materials and craftsmanship, at today’s prices.

Unlike market value, it has nothing to do with what your home could sell for — it’s about what it would cost to reconstruct it after a covered loss (like a fire or severe storm).

Example:

Let’s say your home outside Boston has custom hardwood floors, marble countertops, and detailed millwork. To rebuild it with those features today, construction might cost $450,000, even if the market says the home is worth $675,000. That’s because insurance only covers what it takes to replace the structure, not the land, location, or market demand.

📌 Important: Building costs have surged. Between 2018 and 2021, the average cost to build a single-family home rose 42%, according to NAR. That’s why replacement cost gets recalculated regularly.

What Is Actual Cash Value?

Actual cash value (ACV) is what your home (or parts of it) are worth today, accounting for depreciation over time. In other words, it’s replacement cost minus depreciation.

This type of policy pays out less because it reflects the home’s reduced value due to age, wear and tear, and outdated features.

Example:

If your home was built 10 years ago for $400,000, and its components have depreciated by 30%, your actual cash value might be around $280,000. That’s all you’d receive from your insurance company if your home were destroyed — even if rebuilding it would cost much more.

⚠️ Actual cash value = lower premium, but higher out-of-pocket risk in a major loss.

What Is Market Value?

Market value is the amount your home would sell for in the current real estate market — including the value of the land, location, school district, and overall demand in your area.

Unlike insurance valuation, market value is heavily influenced by buyer demand, interest rates, and neighborhood factors.

Example:

A three-bedroom home in Dorchester might sell for $675,000, while a similar home in Brookline could go for $900,000 — even if they cost the same to rebuild. That’s market value at work.

💡 Your insurance company doesn’t cover market value, because they don’t insure the land — only the cost to replace the structure.

So Which Value Matters for Your Home Insurance?

For all homeowners, replacement cost value is the smartest and safest choice. It ensures you can rebuild your home as it was — without coming up short after a loss.

But not all policies are created equal. Some companies still offer actual cash value policies (especially on older homes or second properties), so it’s crucial to understand what you’re buying.

Here’s the updated Pro Tip section with the more nuanced cost breakdown included, while keeping the tone and flow consistent with the rest of the article:

🛠️ Pro Tip: How to Estimate Your Home’s Replacement Cost

To get a ballpark estimate, multiply your home’s square footage by the average construction cost per square foot in your area — but make sure you’re comparing apples to apples.

  • Tract Homes: The widely quoted $280 per square foot typically applies to tract homes — properties built in large developments using pre-designed plans and cost-saving construction methods.
  • Custom Homes: If your home is custom-built with high-end finishes, unique layouts, or specialty materials, the cost to rebuild is often $350 per square foot or more in Massachusetts.

Example:

A 2,000-square-foot tract-style home might cost around $560,000 to rebuild.
But a 2,000-square-foot custom home could easily run $700,000+ to replace.

📌 This is why it’s so important to review your policy with a broker who understands local building costs — not just market averages.

Work With the Right Insurance Partner

Choosing the right policy is only part of the equation — choosing the right insurance broker makes all the difference.

Unlike agents who only represent one company, independent brokers like Vargas & Vargas Insurance work with a wide range of top-rated insurers. We compare options side by side, explain every detail clearly, and help you update your policy as your needs change.

📞 Ready to Make Sure You’re Covered Correctly?

Don’t risk being underinsured when it matters most. Call Vargas & Vargas Insurance today at 617-298-0655 for a personalized, no-obligation quote.

We’ll help you understand exactly what your home is worth — and how to protect every inch of it.

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What Your Homeowners Insurance Doesn’t Cover: 10 Gaps You’ll Want to Close Before the Next Big Storm

Posted on by cvargas

Think your homeowners insurance covers everything?

What if the next storm hits and your claim is denied over a technicality?

In the next few minutes, you’ll learn the 10 most common coverage gaps hiding in standard home insurance policies — and how to fix them before disaster strikes

From floods to mold to business losses, we’ll explain exactly what’s missing and the simple, affordable ways to close each gap.

1. Flood Damage

Standard HO-3 policies do not cover flood damage from storm surge, rising rivers, or heavy rainfall that enters at ground level. It’s one of the most expensive uncovered risks homeowners face.

Fix it: Ask your broker for a flood zone determination and quotes from both FEMA’s NFIP and private carriers. Flood insurance can cost less than $50/month if you’re in a low-risk zone.

Here’s the revised section with the estimated cost of an earthquake endorsement in Massachusetts added for clarity and buyer context:

2. Earthquakes, Sinkholes, and Earth Movement

Most policies exclude any kind of ground movement — including earthquakes, sinkholes, or nearby blasting. In New England, we don’t expect it… until it happens.

Fix it: Consider a low-cost earthquake or “difference-in-conditions” endorsement. It’s especially smart if you live near construction or old infrastructure.

Cost: In Massachusetts, adding earthquake coverage typically ranges from $75 to $200 per year, depending on your home’s location, age, and foundation type.

3. Wear, Tear & Neglect

Insurance is for sudden and accidental damage — not long-term deterioration. That aging roof, rusted boiler, or flaking paint? You’re on your own.

Fix it: Build a home maintenance calendar. For major systems, ask your broker about an equipment breakdown endorsement, which acts like a mini home warranty.

4. Intentional or Criminal Acts

If damage is caused intentionally — by you or someone else — it’s not covered. The same goes for liability claims linked to criminal or reckless behavior.

Fix it: There’s no fix here except prevention. Always act in good faith — and keep your household in check.

5. Business Activity at Home

Running a business or short-term rental from your home? Standard policies typically exclude losses tied to business property, income, or guest liability.

Fix it: Add a home-based business endorsement, or consider a small commercial policy. Hosting on Airbnb or Vrbo? Ask about “host liability” protection.

6. Jewelry, Art, and High-Value Items

Many policies cap theft of items like jewelry, collectibles, or electronics at $1,000–$2,500 total — far less than the value of a single engagement ring.

Fix it: Schedule high-value items individually. It’s affordable and often waives your deductible.

7. Heating Oil Spills

Oil tank leaks — especially underground — can lead to six-figure cleanup bills. Most policies don’t include coverage for environmental damage or personal property loss.

Fix it: In Massachusetts, request an oil spill liability endorsement. It’s a low-cost add-on that covers cleanup and testing.

Here’s the updated version of that section with Massachusetts-specific cost details included:

8. Sewer or Sump Pump Backup

Water that backs up from a drain or sump pump isn’t treated the same as a burst pipe — and it’s excluded without a rider.

Fix it: Add a water backup endorsement. Coverage starts at $5,000 and can go up to $50,000.

Cost: In Massachusetts, this rider typically costs between $40 and $150 per year, depending on the coverage amount you choose.

It’s a small price to pay compared to the thousands it would cost to tear out and replace flooring, drywall, or personal property in a finished basement.

9. Mold From Uncovered Events

Mold caused by slow leaks, humidity, or flooding usually isn’t covered — and even when it is, it may be limited to a few thousand dollars.

Fix it: Stay on top of maintenance, keep your home below 55% humidity, and explore a mold endorsement if you’re in a damp environment.

10. Pest and Vermin Damage

Termites, mice, squirrels, and other critters are considered a preventable issue, not an insurable one.

Fix it: Invest in annual pest control and seal all access points. Currently, there’s no endorsement that meaningfully covers pest damage.

Here’s a smoother, more natural rewrite of that section:

So… What Is Covered?

While there are important gaps to be aware of, standard homeowners insurance still offers essential protection — covering things like fire, theft, wind damage, and more.

The key is knowing what’s not covered. By reviewing the exclusions section of your policy and working with a broker to customize the right add-ons, you can fill those gaps before they become costly surprises.

Ready to Close the Gaps in Your Policy?

Now you know the 10 biggest blind spots in your homeowners coverage — and how to fix each one.

But here’s the thing: the real risk isn’t the storm… it’s discovering too late that your policy ends where the damage begins.

Let’s fix that today.

👉 Call Vargas & Vargas Insurance at 617-298-0655,
📱 Text us at 617-409-0329, or
🌐 Request your free policy review at VargasInsurance.com

We’ll make sure every “what if” is answered before it becomes a “what now.”

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FAIR Plan Insurance in Massachusetts: What You Need to Know

Posted on by cvargas

Have you been denied home insurance because of your property’s age, location, or past claims?

Are you hearing about something called the “FAIR Plan” and wondering what it actually covers — and whether it’s right for you?

At Vargas & Vargas Insurance, we help clients across Massachusetts navigate the FAIR Plan every day — and in this article, we’ll explain exactly what it is, who it’s for, and how it compares to standard insurance.

You’ll walk away knowing what the FAIR Plan covers, when you should consider it, and what your next step should be if you think it might apply to you.

What Is the Massachusetts FAIR Plan?

The FAIR Plan (short for Fair Access to Insurance Requirements) is a state-backed homeowners insurance program available through the Massachusetts Property Insurance Underwriting Association (MPIUA). It was created to provide insurance to homeowners who are unable to secure coverage through traditional insurance carriers.

Here’s a smoother, clearer rewrite of that section:

The Massachusetts FAIR Plan was established in 1968 by the state legislature as a residual market solution — designed to offer property insurance to homeowners who can’t secure coverage through traditional insurance companies.

In simple terms, it’s a safety net for homes that private insurers consider too “high-risk” or too costly to insure through standard markets.

Why insure with the FAIR Plan?

  • Private insurers have denied your home coverage
  • Your home is located in a high-risk area (coastal zones, high-crime neighborhoods, flood-prone zones)
  • You’ve had multiple prior claims
  • Your property has structural issues or older systems that standard insurers don’t want to cover

You must also meet certain basic conditions — for example, the home can’t be vacant or condemned, and you must have taken reasonable steps to maintain the property.

What Does the FAIR Plan Cover — and What It Doesn’t

✅ What it covers:

Unlike what many believe, the FAIR Plan does offer standard homeowners policies — including HO-2, HO-3, HO-4 and HO-6 forms — meaning you may be eligible for:

  • Fire and smoke damage
  • Windstorm or hail
  • Theft and vandalism
  • Accidental water discharge
  • Snow or ice collapse
  • Damage from vehicles or aircraft
  • Personal property (if included)
  • Replacement cost coverage (if qualifications are met)

❌ What it does not include or limits:

  • No discounts for bundling, loyalty, or protective devices
  • Fewer available endorsements and optional coverages
  • May not automatically include coverage like liability, mold, or water backup
  • You’ll need separate policies for flood or earthquake protection
  • Some policies are written on actual cash value if you don’t meet replacement cost eligibility
  • Dwelling maximum limit of $1mil

FAIR Plan vs. Standard Homeowners Insurance

FeatureFAIR Plan (MPIUA)Standard Insurance
AvailabilityFor high-risk homesAvailable if home meets underwriting standards
Policy TypeHO-2, HO-3, HO-4 and HO-6 HO-2, HO-3, HO-4 and HO-6 (default) or broader options
CoverageMajor perils; limited extrasFull coverage + endorsements (liability, living expenses, etc.)
ValuationReplacement cost (if qualified) or actual cash valueTypically replacement cost
DiscountsNoneMulti-policy, claim-free, protective devices, and more
FlexibilityLimited customizationHighly flexible with broad market options

How Much Does the FAIR Plan Cost?

The FAIR Plan uses standard base premiums like other insurers, but does not offer discounts — which means it’s often more expensive than a private-market policy for the same home.

If your home qualifies for a standard insurer later, you may be able to reduce your cost and improve your coverage by moving off the FAIR Plan.

Should You Use the FAIR Plan?

Here’s the bottom line:

If you’ve been declined by other companies, the FAIR Plan is a valuable fallback that gets you the coverage you need to protect your home and satisfy your mortgage requirements.

But it shouldn’t be your forever plan.

At Vargas & Vargas Insurance, we often start clients on the FAIR Plan when necessary — but we also:

  • Help you understand why you were declined
  • Identify possible home improvements to help you qualify for standard coverage
  • Re-shop your policy every year to move you back into the voluntary market when possible

Let’s Talk Next Steps

If you’ve been turned away by insurers — or even suspect your home may be considered high-risk — don’t panic.

Call our team at Vargas & Vargas Insurance at 617‑298‑0655. We’ll review your situation, walk you through the FAIR Plan, and help you build a plan to either get coverage now — or work toward a better one.

You don’t need to figure it out alone. We’re here to answer your questions, advocate for your home, and help you move toward better insurance — one step at a time.

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MVU-24 vs. MVU-26: Which Massachusetts Vehicle Tax-Exemption Form Do You Need?

Posted on by cvargas

Have you just been handed the keys to a “new-to-you” car and wondered, “What paperwork will the RMV need so I’m not hit with sales tax?”

Or are you passing your old SUV to your daughter and stressing over which form—MVU-24 or MVU-26—keeps the transaction tax-free?

In the next few minutes you’ll know exactly which form applies, what it costs, and the proof you must bring so the clerk can process your transfer without surprises.

We’ll (1) define each form, (2) lay out a side-by-side comparison, (3) walk through real-life scenarios, and (4) wrap up with the documents and next steps you’ll need at the RMV counter.

The Quick Answer (for skimmers)

SituationCorrect FormSales-Tax Owed?Extra Fee?
Vehicle is truly a gift—no money changes hands, giver/recipient can be anyoneMVU-24No sales tax$25 gift-transfer fee (mass.gov, mass.gov)
Vehicle is transferred within your immediate family (parent, child, sibling, spouse)MVU-26No sales taxNo gift-transfer fee (mass.gov, mass.gov)

Use MVU-24 for any no-money gift; use MVU-26 only when the giver and recipient are immediate family.

What Is Form MVU-24? – Gift Transfers

MVU-24 is the sales-tax-exemption affidavit the giver completes when a vehicle is transferred as a gift, regardless of relationship. (mass.gov)

  • Eligibility: Any private party-to-private-party gift where no money changes hands.
  • Fee: A mandatory $25 “gift transfer” charge (plus standard title & registration fees). (mass.gov)
  • Documents to bring:
    1. Completed, signed MVU-24 form (both parties sign).
    2. Previous title (signed over).
    3. Proof of insurance & completed RMV-1/2 form from your insurer.

Pay attention to the $25 fee—many givers forget to warn the recipient and end up scrambling at the cashier window.

What Is Form MVU-26? – Family Transfers

MVU-26 is reserved for transfers within the immediate family and eliminates both sales tax and the $25 gift fee.(mass.gov, mass.gov)

  • Eligible relationships: Parent ↔ child, spouses, siblings. (Aunt-to-niece and grandparent-to-grandchild do notqualify—use MVU-24.)
  • Fee: No sales tax; you pay only standard title & registration fees.
  • Documents to bring:
    1. Completed, signed MVU-26 form.
    2. Proof of the qualifying relationship (license addresses, birth certificates, or marriage certificate).
    3. Title, insurance, RMV-1/2 as usual.

If you can’t prove the family relationship on the spot, the RMV will reclassify the deal as a gift and charge the $25 fee.

MVU-24 vs. MVU-26 – Detailed Comparison

FeatureMVU-24 (Gift)MVU-26 (Family)
Who can use it?Anyone giving a vehicle for freeOnly immediate family members
Sales-tax exemption✅ Yes✅ Yes
$25 Gift-transfer fee✅ Yes❌ No
Proof requiredSigned affidavitSigned affidavit plus proof of relationship
Common examplesFriend gives you an old truckMom signs over her sedan to you

Real-Life Scenarios

  1. Friend-to-friend truck hand-off – MVU-24 + $25 fee.
  2. Dad transfers commuter car to son – MVU-26, no fee.
  3. Grandma to grandson – Not immediate family per RMV; choose MVU-24 and pay $25.
  4. Spouse retitles shared SUV after divorce – MVU-26 still applies; no sales tax.

Common Mistakes (and How You Can Avoid Them)

  • Paying the $25 twice. The RMV charges it once per gift transfer—don’t let an over-eager clerk double-dip.
  • Bringing the wrong form. Givers sometimes download MVU-24 because it shows up first in search; triple-check the relationship box before printing.
  • Leaving blanks. Any blank on the affidavit invalidates the exemption; fill every line, even “N/A.”

What to Bring to the RMV—Your Checklist

  • Signed title (seller section completed).
  • MVU-24 or MVU-26—no substitutions.
  • RMV-1/2 insurance form with stamp or e-signature from your insurer.
  • Proof of relationship (if using MVU-26).
  • Your checkbook or card for the $25 fee (MVU-24) and standard title/registration fees for either form.

Still unsure which form works for your transfer? Call our local independent insurance pros at 617-298-0655 for a quick, no-pressure answer.

Disclaimer: This article is for general educational purposes and is not legal or tax advice. Always verify requirements with Mass.gov before visiting the RMV.

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How to Compare Massachusetts Home Insurance Quotes

Posted on by cvargas

If you’re a homeowner in Massachusetts, you know protecting your home is non-negotiable. But finding the right insurance policy? That can feel overwhelming. With dozens of carriers, coverage levels, and price points, how do you know which one is best?

In this short guide, we’ll walk you through how to shop smart—and how Vargas & Vargas Insurance, your local independent insurance broker, can make the process easier than ever.

1. Understand What Home Insurance Covers

A standard Massachusetts homeowners insurance policy typically includes:

  • Dwelling coverage – protects your home’s structure
  • Personal property – covers belongings like furniture, electronics, and clothing
  • Liability coverage – protects you if someone is injured on your property
  • Loss of use – pays for living expenses if your home is uninhabitable, and loss of rental income if your home is a multi family

Keep in mind: factors like older home construction or proximity to the coast can affect your premium and coverage needs.

2. Compare Apples to Apples

When collecting quotes, make sure each policy reflects the same:

  • Dwelling limit
  • Deductible (some insurance companies policies have an increased wind and hail deductible)
  • Coverage types
  • Optional endorsements (like water backup, identity theft, or equipment breakdown)

Only then can you make a fair comparison.

Also, ask about available discounts, such as:

  • Bundling home and auto
  • Protective devices (alarms, smoke detectors)
  • Claim-free history
  • Good credit

3. Why Work With a Local Independent Broker

Here’s where Vargas & Vargas Insurance makes a real difference.

We’re a local, independent insurance broker—not tied to just one company. That means we shop around on your behalf, comparing quotes from multiple financially strong national and regional insurance providers.

Working with us gives you:

  • Expert advice tailored to Massachusetts homeowners
  • Access to exclusive deals you won’t find on comparison websites
  • One point of contact for quotes, claims, and ongoing support

We simplify the process, ensure you’re properly covered, and make sure you’re not overpaying.

4. Smart Ways to Save on Premiums

To lower your homeowners insurance without cutting corners:

  • Increase your deductible if you can afford it
  • Upgrade home safety features (security systems, fire alarms)
  • Avoid frequent small claims
  • Maintain good credit

Ask About Affinity & Charitable Group Discounts

Westfield State Alumni (via MAPFRE)

Alumni can access custom home & auto insurance rates through MAPFRE westfieldalumni.org+1morseins.com+1.

Charitable Giving Discounts with Arbella

Donations to groups like Mass Golf earn you 5% off home (and auto & condo) policies travelers.com+2morseins.com+2dfmurphy.com+2.

SBLI & Plymouth Rock

If you carry an SBLI life policy, you may receive 5% off home insurance when switching to Plymouth Rock 

✅ Final Thoughts

Shopping for home insurance doesn’t have to be stressful. When you compare consistent quotes, understand your coverage, and work with a knowledgeable local broker, you’ll find the right policy—fast.

Vargas & Vargas Insurance is here to help you every step of the way. We’ll shop around, explain your options, and match you with coverage that protects your home—and your budget.

Ready to get started?
You can reach the Vargas & Vargas Insurance team at 617-298-0655 today and make your home insurance shopping simple, fast, and stress-free.

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Boston Homeowners Insurance & Rodent Damage: What’s Covered?

Posted on by cvargas

Have you discovered chewed wires or insulation in your Massachusetts home—and panicked about whether insurance would help?

Did you assume your homeowners policy had you covered, only to find out it doesn’t?

If you’ve found yourself surprised or frustrated by rodent-related damage and the lack of insurance coverage, you’re not alone. Many homeowners don’t realize that standard policies exclude rodent damage—until it’s too late.

In this article, the team at Vargas & Vargas Insurance will walk you through exactly what’s covered, what’s not, and how to protect your home (and wallet) moving forward.

What Most Boston Homeowners Don’t Know About Rodent Damage Insurance

Standard homeowners insurance does not cover damage caused by rodents like rats or mice. This includes gnawed wires, destroyed insulation, chewed furniture, and even plumbing damage. Most insurers classify this as preventable damage—a maintenance issue that homeowners are expected to handle themselves.

Why Doesn’t Insurance Cover Rodents?

  • Insurers view rodent damage as the result of neglect or failure to maintain the home.
  • Gradual issues—like chewing over time—don’t fall under sudden, accidental events that insurance typically protects against.
  • Cleanup, repairs, and extermination are your responsibility unless specific endorsements are added.

When Rodent Damage Might Be Covered: Rare Exceptions

Although direct damage from rodents is usually excluded, certain secondary damages may be covered.

Electrical Fires Triggered by Rodents

If a rodent chews through electrical wiring and it leads to a fire, the fire and smoke damage are usually covered—but not the wiring or the cost to remove the rodent.

Rodents Enter Due to a Covered Event

If a storm damages your roof, allowing rodents access:

  • Roof repairs may be covered (because the storm is a covered peril).
  • Rodent damage inside the home still won’t be.

Important Distinction: Coverage only kicks in when rodents are the result of a covered peril—not when they’re the cause.

What You Can Do: Rodent Prevention and Policy Enhancements

To protect your Boston home, consider a combination of preventive action and policy awareness:

✅ Rodent Prevention Tips

  • Seal cracks, holes, and entry points in your home’s foundation and roofline.
  • Trim vegetation away from the house.
  • Keep both indoor and outdoor spaces free of clutter and food waste.
  • Schedule routine inspections to catch infestations early.

✅ Understand Your Policy

  • Review the exclusions section of your insurance policy and look for language about vermin, accidental damage, or pest control endorsements.
  • If you are unsure or unclear, reach out to our agency to clarify—especially before damage happens.

✅ Reduce Risk of Secondary Perils

  • Install and regularly test smoke detectors.
  • Have a licensed electrician inspect your wiring—especially in older homes or if you’ve seen rodent activity.

What This Means for You as a Boston Homeowner

At the end of the day, rodent damage is one of those insurance blind spots that catches homeowners off guard. It’s frustrating, costly, and often misunderstood.

Now that you know what your standard policy likely excludes—and where you might be protected—you’re in a stronger position to prevent, prepare, and plan.

If you’d like help reviewing your current homeowners policy, exploring pest-related endorsements, or just want a second opinion on your coverage, Vargas & Vargas Insurance is here to help.

Conclusion: Wrapping It Up

  • Resolution: Most Boston homeowners insurance policies don’t cover rodent damage unless it results in a covered peril like a fire.
  • Remind: You came here because rodent damage can be sudden and expensive—and you weren’t sure if your insurance would help.
  • Relevant Next Step: Review your policy, consider pest control endorsements, and contact an expert if you’re unsure.
  • Reintroduction: At Vargas & Vargas Insurance, we’ve helped Boston homeowners understand and optimize their coverage for over 40 years—so you’re never caught off guard.
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Home Insurance and Your Septic System

Posted on by agentinsure

If your home in Massachusetts relies on a septic system, you already know how essential it is to your property. However, when something goes wrong, many homeowners are surprised by what their insurance covers—and what it doesn’t. Understanding how your policy handles septic system issues can save you from unexpected stress and costs down the road.

What’s Usually Covered

A standard homeowners insurance policy through Vargas & Vargas Insurance, serving Dorchester, MA, is primarily designed to protect your home and attached structures from sudden, unexpected damage. For example, if a storm causes a tree to fall and crush part of your septic system or if a fire damages nearby equipment, your insurance may help cover the repairs. These are examples of direct, covered perils.

However, most septic system problems stem from gradual wear and tear, inadequate maintenance, or age. If the system backs up because it wasn’t pumped on time, or pipes crack due to years of wear and tear, your insurance typically won’t cover those repairs. In these cases, the costs are the homeowner’s responsibility.

Options for Extra Protection

Some insurance companies offer endorsements that can be added to your homeowner’s policy. These endorsements provide additional coverage for underground service lines, including septic systems, and may help cover damage caused by shifting soil or invasive tree roots. This modest addition to your policy could save you thousands if an unexpected issue arises.

A Good Time to Review Your Policy

Septic system troubles can be messy and expensive. That’s why it’s a good idea to review your homeowner’s insurance and consult with your Massachusetts agent at Vargas & Vargas Insurance, serving Dorchester, MA. We can help you evaluate your current coverage and determine if adding extra protection is a smart move for your situation. Taking the time now can ensure you’re better prepared for surprises later.

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Condominium Insurance HO6 Policy – Loss of Unit Use at Claim Time: What You Need to Know

Posted on by cvargas

If your condo became unlivable after a fire or water disaster, could you afford to live elsewhere while it’s being repaired?
Have you checked whether your condo insurance includes enough “loss of use” coverage to pay for temporary housing and other extra expenses?
Many Massachusetts condo owners are surprised at how little coverage they actually have when they file a claim.
In this article, we’ll explain how loss of use coverage works in a standard HO6 condo insurance policy, show you how to calculate your actual limits, and help you decide if you need to make changes before a loss happens.

Section 1: What Is an HO6 Condominium Insurance Policy?

An HO6 policy is a personal condo insurance policy that covers:

  • Your personal property (furniture, electronics, clothing, etc.)
  • Interior unit upgrades (like cabinets, flooring, appliances not covered by the condo association)
  • Personal liability
  • Loss of use—the focus of this article

Your condo association’s master insurance policy covers the structure and common areas—but not your belongings or your temporary living expenses.

Section 2: What Does “Loss of Use” Coverage Mean in an HO6 Policy?

Loss of use (also called Additional Living Expenses or ALE) helps pay for the cost of:

  • Rent for a temporary home
  • Utilities (heat, electricity, water)
  • Laundry or meals if your temporary housing lacks those amenities
  • Other necessary costs that go above and beyond your normal living expenses

💡 In Massachusetts, most HO6 policies calculate this coverage as a percentage of your personal property limit.

Section 3: How to Calculate Your Actual Loss of Use Limit

Let’s break it down with a real-world example:

📌 If your policy has:

  • Personal property limit: $25,000
  • Loss of use limit: 30%

👉 Then your maximum ALE payout is $7,500

Now ask yourself:

  • Would $7,500 cover 3–6 months of rent, utilities, and other added costs in your area?
  • Could you afford temporary housing while still paying your mortgage, condo fees, and taxes?

In many major Massachusetts cities and towns, temporary housing alone could easily run $2,500–$3,500 per month.

Section 4: What Your Condo Association’s Policy Doesn’t Cover

A major misconception is thinking the condo association’s master policy will step in.

🚫 It won’t cover:

  • Your personal belongings
  • Your hotel or apartment costs
  • Your temporary utilities or meals
  • Any loss of use expenses whatsoever

That’s why your HO6 policy is essential—and why having enough coverage matters more than ever.

Section 5: What You Can Do to Avoid Financial Stress at Claim Time

Here are 3 steps you should take today:

  1. ✅ Review your HO6 policy
    Look for the Loss of Use or ALE section and see the current coverage percentage.
  2. ✅ Do the math
    Calculate whether the actual dollar amount would cover 3–6 months of temporary living costs.
  3. ✅ Talk to your independent insurance broker
    You can often increase your personal property coverage (which boosts your ALE automatically) for a very reasonable cost.

Prepare Now—So You’re Not Scrambling Later

If your condo was damaged in a major loss, you’d likely have to move out for months—and continue paying your mortgage, condo fees, and taxes. Would your current HO6 policy cover the costs of temporary housing?

Now that you understand how Loss of Use coverage works—and how it’s calculated—you can take action before a disaster hits.

📞 Call Vargas & Vargas Insurance client, call us at 617-298-0655 to review your current coverage.

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Is Your Car a Target? What You Need to Know About Vehicle Theft in 2024

Posted on by cvargas

Did you know that in 2024, a vehicle was stolen every 37 seconds in the U.S.?

Ever wonder why summer months bring more than just heat — like a rise in car thefts?

If you’ve ever walked away from your car wondering, “Did I lock it?” — this article is for you. Car theft doesn’t just happen in big cities or sketchy neighborhoods. It’s fast, opportunistic, and often avoidable.

Today, we’ll break down why vehicle theft is on the rise and exactly what you can do to reduce your risk — in three simple but powerful steps.

Why Summer Is Prime Time for Car Theft

Thieves don’t take vacations. But car owners often do.

Summer brings:

  • More travel and unfamiliar parking locations
  • Increased distractions (especially at gas stations or roadside stops)
  • Windows left cracked for heat relief

All of this creates opportunities for theft, especially when combined with simple slip-ups like leaving keys in the ignition “just for a minute.”

🚘 1. Take Your Keys — Always

This sounds obvious, but you’d be surprised how often it’s ignored.

Even if you’re running into the gas station or dropping off a package, leaving your car running or unlocked — even for a moment — is like sending an open invitation.

Pro tip: Push-to-start vehicles are especially risky if the fob is in your pocket and you forget the engine’s still running.

🚘 2. Lock Up Everything — Not Just the Doors

Make it a habit to:

  • Roll up all windows (yes, even that little one you leave cracked)
  • Double-check that your sunroof is sealed
  • Secure your trunk and glove box, especially if you store valuables or documents inside

Thieves often look for easy access — not necessarily to take the car, but to grab your stuff.

🚘 3. Park Smart — It Makes a Bigger Difference Than You Think

Where you park is half your protection.

  • Aim for well-lit, high-traffic areas
  • At home, consider installing motion lights or a camera
  • Don’t rely only on alarms; visibility and deterrents work better

If you’re traveling, avoid long-term lots with little security or monitoring.

Conclusion: The Best Theft Protection Is Prevention

At the end of the day, car theft isn’t just a big-city problem — and it’s more common than you think, especially in summer.

By staying mindful of where you park, how you secure your vehicle, and what small habits you practice daily, you’re reducing your risk by more than half.

You came here wondering if your car could be a target. Now, you know how to make sure it isn’t.

🔐 Next step: Share this with someone heading out on a road trip this summer — and take a few minutes today to check your own car safety habits.

Want more tips like this — or a second opinion on your auto insurance coverage?

Let’s chat. The Vargas & Vargas team is here to help you feel confident that you’re protected from more than just what’s “under the hood.”

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Does Homeowners Insurance Cover Riots and Civil Unrest? What You Need to Know Now

Posted on by cvargas

Has the recent news stories made you wonder: “Am I protected if a riot or protest damages my home or car?”
Do you know whether your insurance policy would cover damage caused by civil unrest, looting, or vandalism?
These are legitimate concerns—especially during times of social or political tension.
In this article, we’ll break down exactly what types of riot-related damage are typically covered by your homeowners, renters, and auto insurance policies—and what steps to take to protect your property and peace of mind.

Section 1: Is Riot Damage Covered by Homeowners Insurance?

Yes—most standard homeowners insurance policies do cover damage caused by:

  • Riots
  • Civil commotion
  • Vandalism
  • Fire resulting from unrest
  • Smoke damage
  • Theft (if caused during a covered event)

This includes:

  • Damage to your home’s structure (like broken windows, graffiti, fire)
  • Personal property losses (like stolen electronics or damaged furniture)

✅ Important: Coverage applies as long as the damage wasn’t intentional or caused by the policyholder.

Section 2: What About Renters Insurance?

Renters insurance usually covers riot-related damage to personal belongings, not the building itself (that’s the landlord’s responsibility).

For example:

  • If your apartment is broken into during a protest and your laptop is stolen, your renters policy would typically pay to replace it.

Section 3: Are Vehicles Covered During Riots?

Only if you have comprehensive auto insurance.

✔️ Comprehensive coverage includes:

  • Damage from riots
  • Vandalism
  • Fire
  • Theft
  • Broken windows

🚫 If you only have liability coverage, damage to your own vehicle won’t be covered.

💡 Tip: If you live in an area experiencing unrest, consider moving your vehicle to a safer location like a garage or gated facility.

Section 4: 3 Smart Steps to Take During Civil Unrest

  1. ✅ Review your policy limits and deductibles
    Make sure your coverage amount still makes sense based on today’s replacement costs.
  2. ✅ Document your belongings
    Keep photos or videos of valuables in case you need to file a claim.
  3. ✅ Add or update endorsements
    If you own high-value items (jewelry, art, collectibles), make sure they’re scheduled properly—they may not be fully covered under standard limits.

Stay Calm, Covered, and Informed

In times of uncertainty, one thing you can control is knowing where you stand with your insurance coverage. Riot, civil commotion, and vandalism are generally covered under most homeowners, renters, and auto policies—but only if your coverage is current and comprehensive.

📞 If you’re a client of Vargas & Vargas Insurance, call us at 617-298-0655 with any questions or to review your protection.
🤝 If you’re working with a claims adjuster or another independent broker, reach out now to make sure you’re fully covered—before something happens.

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Do Insurance Brokers Really Take 80% of Your Premium?

Posted on by cvargas

Have you seen online or heard the misinfoirmation that insurance brokers pocket 80% of your premium?

And are you now wondering whether working with a broker is just throwing money away compared to going straight to an insurance company?

Here’s the truth: that 80% number is wildly misleading. In this article, you’ll learn what brokers actually get paid, why that compensation exists, and how brokers often save you money—especially at renewal time.

Where Does the 80% Claim Even Come From?

A few social media personalities have spread the idea that insurance brokers take up to 80% of your premium. But what they’re not telling you is this:

That number typically refers to certain one-time life insurance commissions, not to your home, auto, or business insurance premiums—and even then, it doesn’t reflect actual earnings after service costs, taxes, and overhead.

What Insurance Brokers Actually Earn

Let’s clear it up: brokers typically earn between 11% and 15% of your premium. This isn’t just for selling you a policy—it covers:

  • Year-round customer support
  • Claims assistance
  • Annual policy reviews and remarketing
  • Access to multiple insurance carriers
  • Local, personalized service

And yes, that commission keeps staff employed in your community. We’re not faceless call centers—we’re your neighbors.

📊 A quick breakdown of your $1,000 premium:

  • Insurance company: ~$880
  • Broker compensation: ~$120

Why a Broker Can Actually Save You Money

I started as an agent in 1980—selling for one company only. If rates went up or coverage changed, you were stuck.

That’s why I became a broker. Brokers aren’t tied to one company. We shop 10 or more carriers to find the best deal, especially at renewal time when your premium might unexpectedly jump.

Agents = 1 option.
Brokers = Multiple.

Which one gives you more leverage?

Is a Broker Right for Everyone?

Not always. If you already get discounts for bundling through a direct insurer, or if you’re loyal to one company no matter the rate, working directly may suit you just fine.

But if you want flexibility, price comparisons, or someone to handle the messy parts of insurance for you—brokers are built for that.

Conclusion: Let’s Get You Better Coverage for Less

Now that you know brokers don’t take 80%—and in fact, often help you avoid overpaying—what’s next?

If you’re tired of rate hikes, limited options, and waiting on hold when things go wrong, we can help.

Let us compare your policy across multiple carriers. You might be surprised what you’re missing.

The team at Vargas & Vargas Insurance can be reached at 617-298-0655 to help you get clarity, control, and confidence in your coverage—year-round.

➡️ Next Step:

Curious about how switching from an agent to a broker actually works?
Watch: Is Your Insurance Agent Or Broker Working For You?

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Why Don’t Insurance Companies Pay the Full Claim Upfront? Understanding the “Holdback”

Posted on by cvargas

Have you ever filed a claim and been surprised your insurance company didn’t pay the full amount right away?
Are you confused by terms like “depreciation” or “holdback” listed on your claim settlement?
You’re not alone—this is one of the most common pain points in the claims process.
In this article, we’ll explain what a holdback is, why insurers use it, and how it applies to both structural repairs and contents (personal property) claims. You’ll also learn what steps you need to take to recover the full amount you’re owed.

Section 1: What Is a Holdback in an Insurance Claim?

When you file a property damage claim, your insurance company may withhold part of your payout. This withheld amount is called a holdback, and it’s tied to depreciation—the estimated loss in value due to age, wear and tear, or obsolescence.

💡 Example:
A damaged 10-year-old roof might cost $12,000 to replace. The insurance company subtracts $4,000 for depreciation and pays you $8,000 initially.
The $4,000 holdback is paid later, once you show proof the roof was actually replaced.

Section 2: Why Do Carriers Hold Back Part of the Payment?

Insurance companies don’t want to overpay for losses that aren’t repaired or replaced.

Here’s why holdbacks are used:

  • ✅ To avoid fraud or misuse of funds
  • ✅ To encourage proper repairs or replacement
  • ✅ To protect against overvaluation of older items
  • ✅ To ensure compliance with Replacement Cost Value (RCV) policies

A holdback is essentially the insurer saying, “Once you prove the work or replacement is done, we’ll release the rest.”

Section 3: How a Holdback Works for Personal Property (Contents) Claims

This surprises many policyholders: holdbacks also apply to personal property, not just your home or roof.

Let’s say a fire destroys furniture, electronics, and clothing. Here’s how it typically works under an RCV policy:

🪑 Example – Replacing a computer

  • Original value: $2,000
  • Depreciation: $800
  • Initial payout (ACV): $1,200
  • You buy a new computer and send the receipt
  • Insurer releases $800 holdback = ✅ Full $2,000 reimbursed

📷 Important:
If you don’t replace the item (or buy a less expensive version), you may not get the full depreciation back.

✔️ To recover the holdback for contents, you usually need:

  • Receipts or invoices for replaced items
  • Photos (if required)
  • Itemized inventory of damaged/lost property
  • Proof that replacement occurred within the insurer’s required timeframe

Section 4: ACV vs. RCV—Which One Do You Have?

Holdbacks only apply if you have a Replacement Cost Value (RCV) policy. If your policy is Actual Cash Value (ACV) only, depreciation is deducted—and you won’t recover that amount later.

🔍 Know your policy type:

  • RCV = You can recover depreciation with proof of replacement
  • ACV = You get a depreciated payout only

Section 5: How to Recover Your Holdback (Step-by-Step)

To get the full payout, including the holdback:

  1. ✅ Complete the repairs or replacement
  2. ✅ Save receipts, invoices, or estimates
  3. ✅ Submit documentation to your insurance company
  4. ✅ Follow up with your adjuster if needed

Tip: Ask your adjuster early: “What proof will you need from me to release the holdback?”

Protect Yourself by Understanding the Process

At the end of the day, a holdback isn’t a trick—it’s a standard part of how many insurance policies work. Whether you’re repairing a roof or replacing lost personal property, understanding depreciation and proof-of-replacement rules helps you get every dollar you’re entitled to.

Now that you know how holdbacks work for both structural and contents claims, don’t leave money on the table.

Here’s the rewritten section with your requested focus:

📞 Need help understanding the claim paperwork or how your policy works?
If you’re a client of Vargas & Vargas Insurance, give us a call at 617-298-0655—we’re here to walk you through the process step by step.
If you’re working with a claims adjuster or a local independent insurance broker, don’t hesitate to reach out to them with your questions.
Getting expert guidance now can ensure you recover everything you’re entitled to.

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Who’s Actually Covered by Your Homeowners Insurance? (It’s Not Everyone You Think)

Posted on by cvargas

Are you assuming everyone in your household is automatically covered by your homeowners insurance?
What about roommates, adult children, or a live-in relative—are they protected under your policy too?
It’s a smart question—and the answer can impact whether a claim is paid or denied.
In this article, we’ll break down exactly who is (and isn’t) covered under a standard homeowners policy, so you know where your protection starts—and where it stops.

Section 1: Who’s Covered Under a Standard Homeowners Policy?

Most homeowners policies are built around the idea of “named insureds” and their household members.
Here’s who’s typically covered:

✅ You, the policyholder (named on the declarations page)
✅ Your spouse (if they live in the home)
✅ Relatives who live with you (like your child, parent, or sibling)
✅ Children temporarily away at school (often up to age 24 if full-time students)
✅ Other residents under your care (like foster children)

These people are usually protected for:

  • Property damage (personal belongings inside and outside the home)
  • Personal liability (if someone sues them for causing injury or property damage)
  • Medical payments to others (third-party injuries)

Section 2: Who Is NOT Covered Automatically?

Just because someone lives with you doesn’t mean they’re covered. Examples of people not automatically coveredinclude:

🚫 Adult children no longer considered dependents
🚫 Roommates or tenants (unless added to the policy)
🚫 Domestic partners not legally married
🚫 Guests or visiting relatives (beyond liability for injury on your property)
🚫 Household employees (may need separate coverage)

💡 If someone lives in your home but isn’t legally related or on the policy, they may not have any protection for their belongings or liability.

Section 3: What About Liability Coverage?

Homeowners insurance also includes personal liability protection—but only for covered individuals.

✅ Example: If your child breaks a neighbor’s window with a baseball, your policy likely covers the damage.
🚫 But if your roommate causes damage at a friend’s house, your policy probably won’t cover it unless they’re listed as an insured.

🏠 Liability coverage is personal—it follows the insured individual, not just the address.

Section 4: How to Make Sure the Right People Are Covered

✔️ Review your declarations page to see who’s listed
✔️ Tell your broker if your living situation changes (like a new roommate or relative moves in)
✔️ Ask about endorsements or separate renters policies for non-family members
✔️ Confirm coverage for college students living away from home

💬 Every insurer has slightly different guidelines, so always check the fine print.

Know Who’s Protected—Before There’s a Problem

You might assume your homeowners insurance covers everyone under your roof—but that’s not always the case. Now that you know who is typically covered (and who isn’t), you can make smart choices to extend or adjust your coverage before an uncovered loss happens.

📞 Already a Vargas & Vargas Insurance client? Call us at 617-298-0655 if you have questions about who’s protected on your policy.
💼 If you’re working with an adjuster or a local independent broker, ask them to review your household structure to ensure you’re fully protected.

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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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