Service line breaks can be costly and unexpected, as they are not usually visible to homeowners. These lines provide water, gas, electricity, and other essential services to homes. At Vargas & Vargas Insurance we’ve seen how damaging a service line break can be when homeowners must pay for repairs out of pocket due to a lack of coverage on their homeowner’s insurance policy. Homeowners should only have to worry about having to dig up their garden for access if there is a punctured pipe – not the full cost of repairs too.

In this article, we’ll explore the optional endorsement you can add to your policy that provides protection for your home from any service line damages, as well as what is and isn’t covered in the policy.

Does Home Insurance Cover Service Lines?

Service lines are an important aspect of a home, but they are not usually included in a typical homeowners insurance plan. However, it is possible to include coverage for service lines by purchasing an extra endorsement from most insurers. This type of coverage provides protection from any unexpected expenses caused by damaged service lines on the property, such as tree roots blocking water pipes or cracked sewer lines. It would cover the costs for fixing or replacing these utility lines, including the expensive digging required to access them and any landscaping that may be disturbed during repairs.

Once your deductible has been paid, your insurance provider will cover the costs of repairs or replacements. Service line breaks can cost anywhere from $5,000 to $10,000, so it is beneficial to add this endorsement to your policy in order to avoid incurring these large expenses out of pocket.

Damages That Are Covered

Service line coverage endorsement typically covers damages such as:

• Wear and tear
• Rust, decay, deterioration, and corrosion.
• Additionally, it may cover damage from tree or root obstruction or
• Vermin, insects, or rodents.
• Landscaping or excavation accidents,
• Freezing,
• Collapse, and
• Mechanical or
• Electrical breakdown may also be covered.
• Weight from cars can cause the collapse of an above-ground structure.

The Types Of Services Provided Include:

Examples of the various services that are part of a house can be seen here.

• Telephone cable lines
• Water Pipes
• Drains,
• Natural gas
• Sewage
• Fuel
• Sprinkler systems
• Liquid flow lines
• Steam
• Fiber optics
• Buried electric wires

Types Of Service Lines Not Covered

These service lines are not included in the service line coverage.

• Fuel containers
• Cabling or pipes that traverse a body of liquid
• Sewage systems
• Wiring or tubing that isn’t linked up and ready to go

What Does Service Line Coverage Cost

The cost of this coverage is actually very affordable and provides important protection. This coverage would usually cost between $50 and $100 per year for the $10,000 to $20,000 of additional coverage it offers on top of your homeowner’s insurance policy.

Overall cost and premium would vary depending on the insurance carrier. Because this coverage is so affordable and offers important protections, Vargas & Vargas Insurance tends to recommend this coverage for all of our client’s policies.

Protecting your home from service line breaks 

Staying on top of the upkeep and inspections of your home can be tricky, so it’s a good idea to ensure you’re protected from any possible damage by having comprehensive coverage in your homeowner’s insurance policy. As a homeowner, it is essential to understand what is included in your insurance policy and the areas where you may not be covered.

Your Local Independent Insurance Broker

Vargas & Vargas Insurance is dedicated to providing customers with the best service possible. We are independent brokers and work with many financially strong insurance companies to customize an insurance plan that meets the individual needs of our clients. For four decades, we have been helping homeowners understand the significance of having the proper homeowners insurance.

Contact us today 617-298-0655

When buying a new house, getting help from a trustworthy insurance agent and an experienced mortgage broker is essential. Even if you have bought thirty homes before, you may not realize that homeowner’s insurance can complicate the mortgage approval process in Boston, MA.

Mortgage Company Requirement

When obtaining a loan from a bank or other lender, you will be expected to provide proof of an insurance policy sufficient to either rebuild the home or cover the mortgage amount. Your chosen mortgage broker or loan officer has to meet the lender’s standards, but it is also important for your home insurance policy to cover what it would cost to reconstruct your house in case of a claimable event and not just the value of the mortgage.

Replacement Cost Versus Mortgage Amount

It is likely that the amount to reconstruct your home will be different from the mortgage amount you take out. You certainly don’t want to miss the difference in case of a disaster such as a fire. For example, if you borrowed $250,000 after making a down payment of $50,000, that means the house is worth $300,000. But reconstructing it (including labor and materials) could cost up to $375,000. It is important to remember that there is a variation between buying and rebuilding your house.

An appropriate homeowners insurance policy would cover up to $375,000, not the amount of your mortgage.

The Mortgage Company Binder Requirement

Your mortgage broker needs to see an insurance binder with the bank’s name and the proper language. Failing to provide this correctly could lead to a postponement of the closing date. To ensure that you are prepared, a reliable Boston MA, mortgage broker will supply the exact language the bank requires and thoroughly analyze the binder prior to the closing. This way, they can make sure that the binder contains all of the necessary information and meets all of the guidelines set out by the bank. They can also help ensure that the binder is properly formatted and all of the necessary details and terms are included. This can help avoid any potential issues or delays on the closing day. By taking these steps, you can be sure that you are well-prepared for the closing and that everything will proceed smoothly

When is a great time to shop around for your insurance binder

We recommend calling local independent insurance brokers around the time that your offer is accepted and you have scheduled the home inspection process. This will give your insurance broker enough time to shop around for the best coverage at the best price for you and your new home.

Insurance Discounts

At Vargas & Vargas Insurance, we recommend that homeowners bundle their house and car insurance to get all the possible discounts. We work closely with the top mortgage brokers to ensure they have the necessary paperwork done on time; having an insurance binder is a key part of getting a home loan approved. We are experienced in dealing with all mortgage brokers in Massachusetts.

Local Independent Insurance Agency

Vargas & Vargas Insurance is a local independent insurance broker, we work for you, the customer, and not any one insurance company, and we always have time for you. We shop around with many local and national insurance companies to offer you a tailored fit insurance policy for your specific needs. We have been helping first-time home buyers for over 40  years and teaching them about the significance of their homeowner’s insurance, call us today.

Call us 617-298-0655

In Massachusetts, all drivers are required to register their vehicles and purchase compulsory auto insurance coverage. To ensure that drivers comply with state insurance laws, drivers must turn in their license plates before canceling their auto insurance policy. And if you are transferring your Vehicle’s ownership, it is your responsibility to properly register and insure the car before driving on state roads.
Leaving your license plate on the car could make you liable for the actions of another driver.

Before You Turn In The Plates, Are You Planning To Buy A New Vehicle?

If the answer is yes, then you have seven days from the sale of your old car to register a similar one with the same license plates.

In Massachusetts, you have seven days after disposing of a car to transfer the plates to the new vehicle.
You must be at least 18 years old, the new vehicle must be of the same type and have the same number of wheels, and you must carry the transfer documents to prove the registration transfer.

To use the 7-day grace period, you must transfer the title of your old car to a new buyer.

It the answer is no, then cancel the plates immediately. This is because your Auto Insurance follows your registration, not the vehicle itself. If you don’t cancel the plates, you will still be liable for any excise tax associated with that vehicle and cannot cancel insurance coverage either.

How Do I Cancel My License Plates

In order to terminate your vehicle’s insurance coverage, you will need to submit a Plate Return Receipt. Here is the link for the state of Massachusetts:

https://secure.rmv.state.ma.us/PlateReturn/intro.aspx

To cancel your plate, you need your email address, the type and number of the plate, the last four digits of your Social Security Number, and a Driver’s License. Once you have finished cancelling your MA plates, please inform our office and send us a copy of the Plate Return Receipt for proof that coverage for the vehicle has been cancelled. As a courtesy to our customers, we offer various RMV services such as Registration and Title Applications, plate transfers, registration renewals etc.

If You Are Junking Your Car

If you have been in an accident, your car might be totaled and not worth selling. Sometimes, old cars simply have little value or have major mechanical problems like a blown motor or damaged transmission. In such a case, you might choose to donate your car to a non profit, Click here to learn more about donating your car, or have your car towed to a junkyard where it will be crushed. Your license plate still has the same function – it identifies you as the owner of the car. As soon as your car is out of your possession, you have no control over what happens with the license plate. Remove the license plate when you take your personal possessions out of the car. This is a good idea to be safe, especially if you are thinking of selling the car

If You Are Returning A Leased Vehicle

When returning a leased car to the dealership, you are still responsible for all of the belongings that came with the vehicle. This includes the license plate. Before returning your leased car, make sure you have everything that came with it, including the second set of keys, cargo covers, spare tires, original floor mats, and third row seats. Remove all your possessions from the car and take off the license plates.

Vargas & Vargas Insurance is always available to help you, with your Massachusetts auto insurance policy, you can contact our team at 617-298-0655 when transferring ownership of a vehicle, turning is a leased vehicle, or donating your car. We can help you understand your auto insurance policy in Massachusetts.

An escrow account is like a holding tank.

When you take out a mortgage from a bank or lender, they will also set up an escrow account for you. This account is used to pay your property taxes and homeowner’s insurance premiums on time, every year. Even though these costs are annual, your lender will require you to pay a monthly amount towards each cost. This way, the balance accumulates in your escrow account and ensures that these expenses get paid on time. Some, mortgage lenders require borrower escrow accounts because it minimizes the risk of falling short of financial obligations as a homeowner. In a foreclosure, unpaid taxes or insurance can result in liens against the property. This makes it harder for the mortgage lender to recover the original loan.

Lenders have a strong incentive to keep borrowers on track with escrow accounts that smooth out the non-mortgage costs of owning a home. By doing so, they can avoid costly penalties and interest charges.

Should you use an escrow account?

An escrow account is often required when obtaining a conventional mortgage, with a down payment of less than 20%. With an FHA or VA loan, this requirement may not be in place. There are reasons to have an escrow account, such as making payments and covering potential shortfalls.

Assuming you have an option, setting up an escrow account can be a convenient way to pay for mortgage, home and mortgage insurance, and property taxes. The funds collected in the account can provide a buffer if there are any unexpected increases in premiums or taxes.

Escrow Drawbacks

Escrow accounts tie up your funds, but you can earn interest on them. -You may be required to deposit several months of property taxes when you open the account, depending on the time of year.

If Your Mortgage Doesn’t Include An Escrow Account

You will need to be prepared to cover these substantial costs yourself.

Be certain you factor in these additional expenses and remain up to date on your tax and insurance payments. If you neglect to pay your property taxes, the state or local government could enforce fines and penalties or put a tax lien on your house. You could also be faced with foreclosure. Furthermore, if you don’t pay your taxes or insurance, your lender may:
1. Add the amounts to the balance of your loan
2. Include an escrow account in your loan
3. Force place insurance that only covers the mortgage company for the loan amount that you owe them and for you and bill you for it. And this type of insurance bought by the lender, is usually more costly than homeowners insurance that you cover yourself.

At Vargas & Vargas Insurance, we always have time for you. You can reach our team at 617-298-0655 or by clicking here to reach out to us.

In the property and casualty insurance industry, prices, coverage availability, and capacity can be affected by changes between soft and hard markets. Up until now, the insurance industry has been in a soft market for nearly 15 years but is now shifting to a hard market.

In a soft market, there is fierce competition with premiums that are stable or decreasing. To sustain or get more business share, many insurance companies are liberalizing their underwriting rules and lowering what they charge. This makes it possible for insurance brokers to obtain better coverage and better insurance premiums for their clients. A wider range of coverage is accessible, with some additional riders included at little or no extra cost.

The Causes Of A Soft Insurance Market May Include

An active, prosperous economy,

A positive interest rate environment,

Low/favorable claims activity,

A plentiful supply of capital,

And substantial policyholder premium surplus.

The Causes Of A Hard Market Could Be Attributed To

In comparison, a hard insurance market is when premiums are increasing, insurers are not willing to negotiate terms and underwriting standards become stricter. Insurers also pay close attention to rates and manage coverage availability in response to certain factors that shape the insurance market cycle.

Economic downturn/insecurity,

Financial markets turbulence,

Dwindling insurance capital/lessened rivalry,

Disastrous occurrences/heightened claims activity,

And global affairs (e.g., pandemic, climate change, etc.).

For instance, large losses from global natural disasters like hurricanes, earthquakes, and wildfires can generate immense property insurance claims. Additionally, other occurrences can also lead to increased claim frequencies impacting other areas of business., such as Covid-19, sizable litigation remunerations, or a greater number of distracted driving cases.

How does Reinsurance work

You may be wondering about reinsurance. Reinsurance is a form of insurance that all insurance companies take out to protect themselves from large financial risks.

For example, if your home is insured for $500,000, your insurance company may only insure a percentage of this amount; they then purchase reinsurance to cover the rest of your coverage. This will make sure that if there ever is a major loss event, the insurer has enough resources to meet their obligations.

How Economic Conditions Affect Your Insurance

Economic conditions have the potential to influence an insurance company’s capacity to issue new policies. During a recession, businesses may buy less insurance or have lower risks. Revenue might decline, and layoffs occur, which would lead to lower premiums for the carrier. Furthermore, this situation usually results in low-interest rates, which reduce insurers’ investment profits.

When the insurance market starts to harden, it’s imperative to be working with an independent insurance broker with extensive knowledge of the marketplace and strong relationships with multiple insurance companies, and who reviews your insurance policy not just when you first purchase the policy but at renewal time to ensure you have the ideal protection for your requirements at the most competitive rate.

At Vargas & Vargas Insurance, we are always available to you. If you choose us as your provider, we will work hard to make sure you have the most suitable coverage at the most competitive rate. Please contact our office at 617-298-0655 so that we can examine your insurance needs and guarantee that you are fully protected.