Is Life Insurance A Real Necessity?

Where Does Life Insurance Sit on Your List of Priorities?

We find that life insurance sits very low on most people’s bucket list of things to check into and buy. We find that most of the younger generation feel they are invincible and nothing is ever going to happen to them, like death. Our licensed insurance agents at Vargas & Vargas Insurance view life insurance as a necessity in life, making this an urgent subject to deal with before your next birthday. Everyone is going to die at some point, the question is not if, but when? Are you adequately protecting your family in the event you die?

Life insurance is very cheap when you are younger age, meaning, you can buy a higher amount of coverage with lower monthly premiums. Perhaps you can buy enough insurance to pay off a mortgage, a car, college education, and have enough left over for the end of life bills and funeral costs, leaving no financial burdens on the family. 

However, as you age every year your monthly premiums rise and these higher insurance amounts may become too expensive for you after retirement age. We service retired clients at our location in Dorchester, MA area who want life insurance settling for just the cost of their funeral so that it leaves no financial burden on family members. Seldom there is little to nothing left to apply towards the end of life expenses such as medical bills. 

An Urgent Call to Action

Life insurance financially takes care of those you leave behind. Death without life insurance can wipe out a family’s savings and finances for a long time to come. If you have no life insurance our agents in Dorchester, MA would like to talk with you about this vital life decision. 

Give us a call today, at Vargas & Vargas Insurance, or stop by for a visit. Access our website for more information on life insurance, our many other available services, and the locations of our five available locations. Seeking information costs you nothing and is free with a no-obligation quote. 

Understanding Homeowners Insurance: What Is Loss of Use Coverage?

happy couple planning home repairs

As Massachusetts insurance agents, the best part of our day is helping first-time homebuyers get a home insurance policy. It’s an exciting and stressful time for young families, and Vargas & Vargas Insurance is here to help.

If this is your first time shopping for home insurance (or if you’ve been a homeowner for years but haven’t read your policy), then it might seem a little overwhelming. We’re here to explain some important points about your policy, and why it’s crucial to have a strong insurance policy in place. In this article, we’ll discuss Coverage D, Loss of Use.

What Is Loss of Use Coverage/Living Expense Coverage/Coverage D?

A strong home insurance policy will protect your investment from a covered loss, like fire. 

Imagine your home was to burn down to the ground. If it’s a smoking pile of debris now, then you’ll need to rebuild your home from the ground up. Coverage D is there to pay for your living expenses elsewhere while you rebuild. It will cover things like:

  • Meals at restaurants
  • Hotel stays
  • Renting an apartment

All you need to do is let your claims adjuster know that you’re staying elsewhere and keep copies of all your receipts. 

Loss of use coverage will also protect you if you suffer a partial loss. Examples would include:

  • The city’s sewer system overflows while you’re gone on a business trip overnight. You come home to a basement full of raw sewage. So you can’t stay in the home — it’s a health risk. Coverage D will pay for your hotel stay and meals. 
  • Your neighbor’s house burns down completely, and one wall of your home is burnt and damaged. If you can’t stay in the home while a wall is replaced, then your coverage will pay for your living expenses somewhere else.

How Much Loss of Use Coverage Do I Have?

Loss of use coverage is based on a percentage of replacement cost (Coverage A). Most basic policies start at 10%. For example, a home valued at $200,000 replacement cost may have $20,000 coverage for loss of use. But every policy is unique, so talk with a licensed insurance agent to understand yours.

As a homeowner, you must understand which coverage you have and what each element does. Read your declarations page carefully, and give us a call at 617-409-0329 if you need a homeowners insurance quote today.

Does Your Renters Insurance Cover Your Side Hustle at Home?

A side hustle is an excellent option for most people to generate extra income. If you run a side hustle from your home, you may not have insurance to cover the business. Without proper insurance, you could find yourself at a loss if you get sued or if your property is damaged.

woman working on her side-hustle in her home office

Renters Insurance

Your renters insurance policy covers an extensive range of property inside your home. It can help you recover laptops, computers, tablets, projectors, and printers after theft or damage. Sometimes, renters insurance can cover items you keep outside and use for deliveries such as a bicycle. In some cases, you can cover your side hustle by adding a rider to your current policy.

However, there are exceptions. Most renters insurance policies cover items you use at home and not for business. Some policies might not extend to cover items used outside the home. For example, if you are a photographer with expensive equipment that you use outside the house, a standard renters policy might not help you.

If your policy provider chooses to cover property that you use for business, the limit might be lower than one provided under a business policy. When the business item you want to include in your renters insurance is not part of your current contract, talk to your provider about an endorsement.

How to Know When Your Side Hustle Needs Insurance

When you are considering finding separate insurance for your side hustle, there are several questions you should ask yourself. Those include:

  • Do customers come to pick products from your home?
  • Do you handle critical and private information?
  • Do you handle people’s children or pets?
  • Could anyone get sick as a result of your business?
  • Would a lawsuit leave you broke?

Commercial Policies

Let’s face it, your side hustle may be safe for now, but there is no assurance. When tragedy strikes, you need to be prepared. Finding commercial insurance for your business will provide better coverage than your current policy. There are various commercial policies available depending on the risks of your business.

Looking for Insurance?

To find the right insurance cover for your side hustle, contact Vargas & Vargas Insurance today!

How to Protect Your Personal Assets When You’re a Landlord

Let’s say that you inherit or purchase a house and end up with two properties. At this point, you have some very big decisions to make. You can sell the extra home or use it as a rental property. Either choice can have immediate benefits, but with rental properties, you have risks as well. These risks may include lawsuits and claims for personal injuries or damages to your tenants. Therefore, before you decide to start your new job as a landlord, we suggest you prepare for the ‘what-ifs.’ You need to know how to protect your personal assets when you’re a landlord. 

homeowner evaluating how to protect his rental property on his home computer

Understanding Your Risks as a Landlord

There are some things that you cannot be held liable for as a landlord. If your tenant suffers a personal injury while jumping on a trampoline that they brought on the property, you most likely will not be held accountable for it. This is especially true if you were unaware that they had a trampoline or you felt that they were grown up enough to play safely while on it. 

The problem arises when you, as a landlord, know that there is a risk of danger to the property or the people who are renting from you. For instance, you may be held liable if:

  • You know that dangerous animals or pets are nearby.
  • You are aware of improper maintenance, water damages, or faulty wiring issues and fail to repair them.
  • You know that criminal activity in the area creates a risk for the personal safety of your tenants.
  • You are aware that the home is in violation of local laws or building codes.

As a property owner for a rental property, you have to fix the issues that you know are there. The shortlist above is only a few of the things that you could be held accountable for. 

How to Protect Your Assets as a Landlord

To protect yourself, you must put effort into securing your personal property. This can be done in several ways. Some of the most common include:

1. Create an LLC for Your Business

The term LLC means that you are a limited liability company. Many homeowners don’t think about the fact that they are a business when they become a landlord, but it’s something to consider. LLCs give you protection from potential problems. The term LLC basically gives you a buffer so that a tenant cannot go after your personal assets — just the business’s assets. 

2. Hiring a Skilled Property Management Company

When you have rental properties, you may not know all that you are responsible or accountable for. A property manager can help you sort through applicants, avoid fair housing violations, and more. They have a full understanding of what is involved and can help you ensure your property is operating legally in every way. 

3. Limit Potential Areas of Liability

If you know that there is a particular risk involved with the property, do everything you can to lessen it. For instance, if you know there is a family of feral cats roaming near your property, contact animal control to help you catch them. Remember that storm last year? If there is any chance that it caused roof damage, have the roof inspected before you rent it out. The more prepared the property is, the safer you will be.

4. Protect Your Assets with Insurance Coverage

When you have a rental property, you need to protect yourself with proper insurance. The minimum protection for you should come from adding a rider or extension to your home insurance. It can help you cover the cost of something going wrong with your rental property. An umbrella policy may also be wise since it can protect you from possible lawsuits.

Along with this, it is important that you inform your tenants that your policy does not cover them. They should purchase their own insurance to protect their personal property. 

If you would like more information on your options as a landlord and protecting what is yours, we are here for you. You can contact us anytime for a quote. Vargas & Vargas is also available via phone calls or text. If you need help during business hours, call us at 617-298-0655.

Paying for your insurance during COVID-19 Crisis

Paying for your insurance during COVID-19 Crisis video

Some of our insurance companies are offering leniency guidelines for the payment of premiums due to the COVID-19 virus. The premium leniency varies from company to company and not all carriers are offering assistance.
 
If you are in need of payment assistance or have any questions, please contact our office with an email to customerservice@vargasinsurance.com or by calling our office at 617-298-0655 and asking for a customer service representative to obtain details on your specific insurance company.

Or, Click here to access our online customer service center available 24 hours a day 7 days a week to view your insurance policies, print insurance ID cards, update your contact information, download documents, and so much more.

We recommend you contact us with any questions or concerns you may have regarding your policy with Vargas & Vargas Insurance. 

Please remember that should you suffer an AFTER HOURS emergency that cannot wait until we open up for business, call our 24 hours 7 day a week emergency number: 617-322-5289.

We look forward to the day that we can open our doors and you can visit our offices.  

Stay healthy, remember our elderly neighbors!

❤️

Carloscvargas@vargasinsurance.com
www.vargasinsurance.com
617-298-0655

Home Insurance FAQ: Purchase Price vs. Replacement Cost

couple looking up home insurance information in their kitchen

Here at Vargas & Vargas Insurance, our goal as licensed insurance agents is to provide competitive homeowners insurance policies to Massachusetts families. Part of our job is educating first-time homebuyers and investors about how homeowners insurance works. 

This article is going to address a home’s purchase price versus replacement cost as it pertains to insurance. We’re also going to answer two specific questions we get all the time:

  1. Why am I insuring a home for replacement cost instead of the purchase price?
  2. What is “dwelling replacement cost,” and how does it work?

Why Am I Insuring a Home for the Replacement Cost, Not the Purchase Price?

Homeowners insurance is designed to help you replace a home and its contents from the ground up in the event of a loss.

Imagine your home burns down to the ground. Homeowners insurance is there to rebuild that home completely and replace your belongings. Replacement cost is our best estimate of what it will take to rebuild that home, in your neighborhood, per square foot.

However, it’s important to know that the purchase price of a home is not equal to replacement cost. Purchase price includes the land the dwelling is sitting on, for example, which doesn’t need to be replaced after a fire.

What Is Dwelling Replacement Cost, and How Does It Work?

We figure every dwelling’s replacement cost individually with a formula: square footage by replacement price (sqft x rp). Replacement price depends on factors like:

  • Your location
  • Current labor costs
  • The expense of materials like wood, brick, carpet, and roofing

As a result, dwelling replacement cost changes from time to time. We also consider:

  • Special enhancements like moldings, architectural finishes, columns and more
  • Fireplaces and stonework
  • Systems like central heat and air, central vacuuming, and sprinkler systems
  • Anything else special or unique about your home

In many cases (but not all), a home’s replacement cost is higher than the purchase price. This is good news for you as a buyer. If there is a total loss, you will come out financially ahead if you have a mortgage.

If you’re buying a home for the first time, congratulations! It’s a tremendous accomplishment. The staff at Vargas & Vargas Insurance is ready to help you get the homeowner’s insurance you need. Reach out to us today at 617-409-0329 for a homeowner’s insurance quote, and check out our blog for more great Massachusetts insurance topics.