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Dorchester, MA 02124

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Month: May 2025

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

Posted on by cvargas

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

Recommend They Start the Insurance Process Early

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

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

Key Information Buyers Will Need for an Insurance Quote

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

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

Work with an Independent Insurance Broker

Independent brokers have access to multiple carriers and can:

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

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

Ensure Buyers Understand the Coverage They Need

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

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

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

Help Buyers Avoid Common Insurance Issues

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

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

Provide Buyers with a Trusted Insurance Contact

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

Need an insurance partner for your buyers?

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

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

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

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

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What Every Homebuyer Needs to Know About Flood Risk in Massachusetts

Posted on by agentinsure

With hurricanes, heavy thunderstorms, and rising sea levels, flooding is a recurring event in Dorchester, MA. The high risk should encourage everyone to secure flood insurance from Vargas & Vargas Insurance, yet only 23% of properties have coverage. If the high risk isn’t a motivator, surely property owners in the area will disclose flood information to buyers, right?

Does Massachusetts Law Require Flood Disclosure?

Surprisingly, no, it doesn’t. Sellers are not obligated to disclose their home’s flood history to buyers. Astonishingly, they can rebuild in the same spot after flood damage and sell it without informing the buyer. However, if the buyer asks a direct question, the seller must tell the truth. If they lie, the seller will face consequences.

For this reason, the Natural Resources Defense Council (NRDC) gives Massachusetts an F on its scorecard for not having laws related to flood disclosure. It is one of 18 states to receive this grade, and it’s unlikely to change in the foreseeable future. The team at Vargas & Vargas Insurance will notify you if it does.

How Can You Discover Flood Damage?

It’s your responsibility to research flood-prone neighborhoods in Dorchester, MA. If the mortgage company, real estate agent, or home inspection report doesn’t discover it or inform you, you must research the home’s flood history before you buy. Flood maps, sea level rise maps, coastal flood risk documents, and elevation maps of the state and city are excellent resources. Real estate websites and comprehensive loss underwriting exchange reports disclosing the home’s history are also helpful.

If you don’t speak up, you are taking a risk that the flood-prone home will flood again without your knowledge. When you secure flood insurance from one of our carriers, asking questions is optional. Flood insurance is the protection that repairs your home and replaces damaged belongings from flood damage. Call, email, or visit our office to speak to an agent about our flood insurance offerings.

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What Really Happens When You Ask for an Insurance Quote from Vargas & Vargas

Posted on by cvargas

What do we actually do when you request a quote?
Are we just hitting a button on one website? Not even close.
You’re about to find out what most agencies won’t tell you — and why that matters.
In this article, you’ll get a behind-the-scenes look at how Vargas & Vargas Insurance compares coverage, coordinates condo policies, and gives you the clearest possible picture of your options.

We Don’t Just “Shop Around” — We Strategically Compare the 12 plus insurance Carriers

When you request a quote from Vargas & Vargas Insurance — whether it’s for auto, home, or condo insurance — we don’t just go to one provider.

We leverage a powerful quote platform that compares offers from all of the different insurance carriers including trusted names like Plymouth Rock, Travelers, Safety, and more. Why? Because each company values different things. One might reward your clean driving record, while another might raise rates based on your zip code in Dorchester.

Different Carriers, Different Priorities — That’s Why We Cast a Wide Net

Insurance pricing isn’t one-size-fits-all.
Some companies love urban areas. Others? Not so much. Some give discounts for bundling auto and home. Others might price aggressively for new condos.

That’s why our team reviews all these variations — so you don’t end up overpaying for a cookie-cutter policy that wasn’t made with your life in mind.

If You’re Buying a Condo, You Need This Extra Step

Most agencies skip this, but we won’t.
If you’re buying a condo, we go a step further and review your building’s master insurance policy.

Why does that matter? Because many condo buyers don’t realize they might be underinsured — or wasting money on duplicate coverage. By comparing the master policy with your quote, we ensure your personal policy fills in the gaps without overlapping coverage you already have.

We Show You the Process — So You’re Not Left Guessing

Let’s be honest: most insurance agencies don’t want you to see how the sausage is made.
But we believe you deserve transparency.

That’s why we break down your quote in plain English, walk you through your options, and explain what your coverage actually protects — and what it doesn’t.

Here’s What to Do Next If You Want Your Quote Done Right

At Vargas & Vargas, we know it’s easy to feel overwhelmed when shopping for insurance. Maybe your current coverage feels unclear, or you’re tired of getting quotes that don’t make sense for your lifestyle.

Now that you’ve seen what we actually do behind the scenes — from comparing up to 15 carriers to coordinating master condo policies — it’s time to make sure your next quote is done with care.

👉 Call us today at 617-298-0655 or click below to request your quote online.

You’ll get:

  • A custom quote breakdown from a licensed agent
  • Clear guidance on coverage and cost
  • Honest recommendations based on your needs

🎯 Get My Quote from Vargas & Vargas Now →

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Why We Don’t Always Recommend the Cheapest Insurance Policy

Posted on by cvargas

Is the lowest insurance quote always the best one?
What are you not getting when you pick the cheapest option?
Let’s talk about why that “great deal” might not be so great when you actually need it.
In this article, you’ll learn what most agencies won’t tell you about coverage, deductibles, and how to truly protect yourself.

Yes, We’ll Show You the Cheapest Option — But That’s Just the Start

When you come to Vargas & Vargas Insurance for a quote, you’ll definitely see the lowest-price policy. But we won’t stop there — because what you don’t see on the quote sheet matters even more.

The cheapest policies often leave out key protections like:

  • Water backup coverage
  • Adequate liability limits
  • Personal property protection

You could save $100 today, but end up paying thousands when the unexpected happens. That’s why we believe it’s better to compare not just the price — but the protection.

Deductibles: Lower Premiums Aren’t Always Worth the Risk

Absolutely — here’s a rewritten version of that paragraph that incorporates your points and keeps the tone clear, helpful, and aligned with the rest of the article

Choosing a $2,500 deductible to save $30 a month might be a smart move for some — but not for everyone. That’s why we take the time to explain how that trade-off would actually play out in the real world, especially when it comes to filing a claim. We’ll also walk you through percentage-based deductibles — what they are, how they work, and why they can be risky in certain situations. You’ll leave the conversation knowing exactly what you’re signing up for, and whether it fits your comfort level and financial reality.

It’s not about cheap — it’s about what’s smart for you.

We Sell with Honesty, Not Pressure — Every Single Time

We’re not here to upsell or scare you into a pricier policy.
And we’re definitely not here to push a rock-bottom deal that leaves you vulnerable.

Our job is to walk you through all your options — clearly, honestly, and with your best interests in mind.

We’ve served the Boston area for over 45 years, and we’ve seen it all. That’s why we take the time to explain what each quote really means, and why one option might make more sense for your situation than another.

What’s the Smartest Move for Your Insurance? Let’s Talk About It.

At the end of the day, the “cheapest” policy could be the most expensive mistake you make. Especially if it skips key coverage or gives you a deductible you can’t afford.

Now that you know what to look for — and what to ask — it’s time to get a quote that’s tailored to you.

📞 Call us today at 617-298-0655 or click below to get started online.

You’ll get:

  • Side-by-side comparisons of coverage and cost
  • Clear advice on deductibles that match your comfort level
  • No pressure — just real guidance from local experts

🎯 Request Your Smart Insurance Quote from Vargas & Vargas Now →

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Why Working With an Insurance Broker Might Not Be Right for You

Posted on by cvargas

If you’re just looking for the lowest price, a broker might not be your best fit.
That may sound odd coming from an insurance broker — but honesty is part of the deal when you work with Vargas & Vargas.

We’re not here to tell you what you want to hear. We’re here to tell you what you need to know.
With 45+ years in the insurance industry, we’ve seen what happens when people chase the cheapest premium and ignore the fine print. It usually ends with big out-of-pocket expenses, confusion during claims, or gaps in protection they never knew existed.

In this article, we’ll explain exactly when working with a broker makes sense — and when it doesn’t.

If Price Is All That Matters, a Direct Company Might Be a Better Fit

Let’s be real — if you’re only interested in the lowest monthly premium, a direct insurer like GEICO or Progressive might give you what you’re looking for. You can quote online, click a few buttons, and get coverage fast.

But what do you give up in exchange for that price?

Ultra-low quotes often mean:

  • Lower liability limits (leaving you exposed)
  • No water backup coverage
  • Hidden deductibles
  • No advisor to help you if something goes wrong
  • Having Deductibles where there should be none
  • Short term policies (6 months instead of 12 months)

And when disaster strikes? You’re left alone with a 1-800 number and a policy you don’t fully understand.

What Makes a Broker Different — and Why It Matters

We don’t work for one company. We work for you.

As an independent broker, we partner with 12 to 15 top-rated insurance carriers and compare their offerings based on:

  • Your personal risk factors
  • The value of your home or vehicle
  • Your budget and deductible preferences
  • What’s actually covered — not just the price

That means you get the best possible value, not just the best possible price.

And here’s the part most people miss:
Before every single renewal, we re-check your policy. If something has changed or a better option is available, we’ll reach out and walk you through the pros and cons of switching — without pressure.

Our Promise: Advice First, Sales Second

We’ve been serving clients in Boston and beyond for over 45 years. During that time, we’ve earned a reputation for being the team that tells it like it is — even when that means telling someone we might not be their best fit.

We’re not in this for one sale. We’re in it for the long haul.
Our clients stick with us because they know we treat their policy like it’s our own — and we never disappear after the paperwork is signed.

Still Wondering If a Broker Is Right for You? Here’s What to Do Next

You came here to figure out if working with an insurance broker is the right move — and maybe discovered that for some people, it’s not. That’s okay.

But if you’re looking for more than just a cheap rate — if you want real advice, real coverage, and someone in your corner for the long run — Vargas & Vargas is here for you.

📞 Call us at 617-298-0655 or request a quote online.

You’ll get:

  • A side-by-side comparison of coverage, not just price
  • A policy tailored to your real-life needs
  • A broker who checks in before renewal — not just when you call

🎯 Let’s Talk About Your Coverage →

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What to Expect When Filing a Home Insurance Claim

Posted on by cvargas

Your home isn’t just where you live — it’s where life happens. It’s filled with memories, milestones, and the people and pets that matter most.

So when disaster strikes — whether it’s a burst pipe, a break-in, or severe weather — it’s not just physical damage. It’s emotional. It’s disruptive. And it can feel overwhelming.

That’s why having the right insurance — and the right team — makes all the difference. At Vargas & Vargas Insurance, we’ve been helping Massachusetts homeowners file and navigate claims for over 45 years. If you’re facing damage to your home or just want to be prepared, here’s a step-by-step breakdown of what to expect during the homeowners insurance claims process.

Step 1: Stop Any Further Damage

If you’re in the middle of an active emergency, your first priority is safety — and then damage control.

  • Make sure everyone in the home is safe.
  • Stop any ongoing damage if it’s safe to do so (e.g., turn off the water, board up a window).
  • Take photos and save receipts for any temporary repairs or cleanup.

💡 Pro tip: If your insurer believes the damage could have been prevented, they may reduce or deny parts of the claim. Do what you can to minimize additional loss.

Step 2: Gather Detailed Information

Start documenting everything as soon as it’s safe.

  • What happened and when
  • What was damaged
  • Who was involved (if applicable)
  • Photos of all damage — ideally from multiple angles

📸 If your home was burglarized, be sure to file a police report.

Step 3: Decide Whether to File a Claim

You might assume you should file a claim automatically, but that’s not always the best move. Consider the following:

  • Is the damage even covered by your policy?
  • Is the cost of repairs below (or just above) your deductible?
  • Will filing a small claim increase your future premiums?

If you’re unsure, give us a call. Vargas & Vargas Insurance can help you run the numbers and make a smart, pressure-free decision.

Step 4: Understand What’s Covered — and What’s Not

Most standard home insurance policies cover:

  • Fire and smoke damage
  • Storm-related damage (if sudden)
  • Theft and vandalism
  • Water damage from burst pipes
  • Overflow damage from toilets or sinks

But there are some important limitations and exclusions. Coverage typically does not include:

  • Flood damage (requires separate flood insurance)
  • Gradual wear and tear
  • Damage from pests or neglect
  • Earthquakes (unless added)
  • Sewer or water backup (unless added)

If you have extra coverages like equipment breakdown, service line protection, or sewer backup, those are usually added by endorsement.

Step 5: Know Your Deductible

Your deductible is what you pay out of pocket before your insurance kicks in. Common deductibles are $500, $1,000, or $2,500.

Example: If your deductible is $1,000 and the repairs will cost $1,200, you’ll only receive $200 from the insurance company — and that small payout might not be worth the potential for a rate increase.

When in doubt, ask us. We’ll help you evaluate your situation.

Step 6: Call Your Insurance Agent

Once you decide to move forward with a claim, your first call should be to your insurance agent — not the insurance company directly.

At Vargas & Vargas, we’ll:

  • Collect your documentation
  • Answer your questions
  • Submit the claim on your behalf
  • Guide you step-by-step through the process

Step 7: Work With the Adjuster

After the claim is submitted, your insurance company will assign an adjuster. Their job is to:

  • Verify your report
  • Evaluate the damage
  • Determine what’s covered under your policy

It’s a good idea to be present when the adjuster visits, if possible, to walk them through everything and answer questions.

Step 8: Get Repair Estimates

Before starting repairs, get written estimates from licensed and insured contractors.

Why does this matter?

  • Your insurance company may not accept repairs done by unlicensed contractors.
  • You’ll need accurate estimates to negotiate your claim payout if the adjuster’s offer feels low.
  • It protects you legally and ensures the work meets code.

Step 8.5: Notify Your Mortgage Company (If You Have One)

If you have a mortgage, it’s essential to let your lender know you’ve filed a claim. Most insurance claim checks are issued to you and your mortgage company jointly, meaning both parties must sign off before the funds can be released.

Each lender has their own process, so the sooner you start communicating with them, the better. Some may require inspections, documentation, or staged payment releases during the repair process.

Skipping this step could lead to delays in getting funds released — and delays in starting your repairs.

Step 9: Wait for Your Claim Settlement

Once your claim is approved and a payout amount is agreed upon, the insurance company will start issuing your payment — but you likely won’t get the full amount upfront.

Here’s how it usually works:

  1. Actual Cash Value (ACV) – This is the depreciated value of your damaged property. You’ll get this check first.
  2. Replacement Cost – After you repair or replace the items and provide proof (invoices, photos), you’ll receive the rest of the funds to cover the replacement cost.

Why the split? Carriers want to ensure the repairs are actually completed before releasing the full amount.

Stay Calm — and Stay in Touch

Filing a home insurance claim is stressful, but knowing what to expect can make a huge difference. And remember: you don’t have to figure it out on your own.

At Vargas & Vargas Insurance, we’re with you every step of the way.
From deciding whether to file to making sure you get what you’re owed, we advocate for you — not the insurance company.

And one last tip: make sure your coverage still fits your life. Home value changes, renovations, and new belongings can affect what you need. That’s why we recommend reviewing your policy with us at least once a year.

Questions About a Home Insurance Claim?

Whether you’re in the middle of a claim or just want to make sure you’re prepared, we’re here for you.

📞 Call Vargas & Vargas Insurance at 617-298-0655
💬 Or send us a message online →

No pressure. No confusing jargon. Just honest advice from a local team that’s been protecting homes like yours for over 45 years.

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How to File an Insurance Claim Like a Pro

Posted on by cvargas

Have you ever wondered what would happen if your house got damaged? That’s where homeowner’s insurance comes in handy! It’s like a safety net for your home and belongings. In this blog post, we’ll explore how to handle insurance claims if something goes wrong with your house.

What is Homeowner’s Insurance?

Homeowner’s insurance is a type of protection you can buy for your house, condominium or apartment. It helps pay for repairs or replacements if your home or stuff inside it gets damaged. This insurance can cover many different problems, like:

  1. Natural disasters (like storms or floods)
  2. Fires
  3. Theft
  4. Accidents that hurt people visiting your home
  5. Lawsuits

It’s important to have this insurance because repairing your home or condo after damage that has occured can cost a lot of money!

Common Types of Insurance Claims

There are three main types of claims that homeowners often make:

  1. Damage to the house: This could be a tree falling on your roof, a pipe bursting and flooding your basement, or your roof is damaged.
  2. Damage to personal belongings: This covers things like furniture, clothes, or electronics that get stolen or ruined.
  3. Liability claims: These happen when someone gets hurt while visiting your home, or away from your home (with the correct coverage in place).

According to the Insurance Information Institute, the most common homeowner’s insurance claims are for wind and hail damage, followed by water damage and freezing.

How to File a Claim

If something bad happens to your house, here’s what you should do:

  1. Call your independent insurance broker-agent or insurance company right away. Tell them what happened.
  2. Take lots of pictures of the damage. This will help prove what happened.
  3. Keep all receipts if you have to buy things or fix stuff before the insurance company looks at the damage.
  4. Start looking for licensed and insured experts to give you a quote to repair the damage.
  5. The insurance company will send someone called a claims adjuster to look at your house. They’ll advise you how much money you should receive to repair the damages.
  6. Be patient! Sometimes it takes a while to get everything sorted out.

Tips for a Smooth Claims Process

To make sure everything goes well when you file a claim, try these tips:

  1. Know what your insurance covers. Read the exclusions portion of your policy carefully or ask your independent insurance broker-agent to explain it.
  2. Make a list of all your important things and how much they cost. This will help if you need to replace them.
  3. Understand how much you might have to pay out of pocket, this is called your deductible.
  4. Keep your house in good shape. Fix small problems before they become big ones!

The National Association of Insurance Commissioners offers more detailed advice on how to prepare for and handle insurance claims.

What If Your Claim is Denied?

Sometimes, the insurance company might say no to your claim. Don’t worry! You can send them further information. Here’s what to do:

  1. Ask the insurance company why they denied your claim
  2. Look for any new information that might help your case.
  3. Write a letter explaining why you think they should pay for the damage.
  4. If they still say no, you can ask for help from your state’s insurance department.
  5. And, if they still deny your loss, consider working a highly recommended and rate public adjuster

Remember, it’s always better to be prepared before something goes wrong. Take some time to become familiar with your insurance policy now. Make sure it covers everything important to you. If you’re not sure about something, ask your insurance agent for help.

Dealing with insurance claims can seem tricky, but if you follow these steps, it becomes much easier. Keep calm, stay organized, and don’t be afraid to ask questions. Your home is important, and having the right insurance can give you peace of mind.

By understanding how your home, condominium or renters insurance policy works and how to handle claims, you’re taking a big step in protecting your home and family.

If you have any questions about homeowner’s insurance or need help with your policy, don’t hesitate to reach out to a professional. Vargas & Vargas Insurance, your local independent insurance broker, can be reached at 617-298-0655 for any questions you may have.

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Rethinking Home Insurance: Why Small Claims Can Cost You Big

Posted on by cvargas

We’ve all seen the comforting insurance commercials:

  • “Like a good neighbor…”
  • “You’re in good hands…”

These slogans suggest that your insurance company is always there to cover anything that goes wrong. But here’s what they don’t tell you—insurance isn’t designed for every little issue, and using it the wrong way can actually cost you more in the long run.

Let’s break down what insurance is really for, when you should and shouldn’t use it, and how to protect your home the smart way.

The Problem – Common Insurance Misconceptions

Many homeowners believe that because they’ve been paying premiums for years, they should be able to file claims for anything—from a small roof leak to a broken fence. But that’s not how home insurance works.

Home Insurance Is for Major, Unexpected Losses

Think of home insurance like car insurance. If you get into a major accident, your policy covers the damages. But you wouldn’t file a claim for new tires or an oil change, right?

The same logic applies to your home. Insurance is designed to protect against:

  • ✔ Fires
  • ✔ Storm damage
  • ✔ Major structural issues
  • ✔ Unexpected, catastrophic events

It is not meant to cover:

  • ✖ Regular wear and tear
  • ✖ Minor maintenance issues
  • ✖ Gradual damage from neglect

The Cost of Filing Too Many Claims

When homeowners file too many small claims, two things happen:

  1. Premiums Increase: Insurance companies view frequent claim-filers as high-risk.
  2. Policy Cancellation Risk: If an insurer believes you rely too much on your policy, they may cancel your coverage altogether—making it harder and more expensive to find new insurance.

The Reality – How Insurance Actually Works

Every time you file a claim, it stays on your record. Even if it’s a small claim, insurers track your claims history and adjust your rates accordingly.

Example: How Small Claims Add Up

Let’s say in three years you file:

  • A claim for a minor roof leak ($2,000)
  • A claim for a plumbing issue ($1,500)
  • A claim for wind damage to your fence ($1,000)

Individually, these seem reasonable. But together? You now look like a homeowner who depends on insurance for routine upkeep.

That’s when insurance companies start:

  • Raising your premiums
  • Labeling you as high-risk
  • Potentially dropping your policy

Before filing a claim, ask yourself: Is this claim worth it in the long run? If the repair cost is close to your deductible, it’s often better to pay out of pocket and avoid adding another claim to your record.

A Smarter Approach – Taking Control of Home Expenses

So, what’s the better way to manage home repairs and keep your insurance costs low? It’s all about being strategic and proactive.

1. Maximize Your Deductible to Save on Premiums

One of the most effective strategies is to increase your deductible. By choosing a higher deductible, you can:

  • 💰 Lower your annual premium
  • 🚫 Avoid the temptation to file small claims
  • 🛡️ Reduce the risk of policy non-renewal due to claim frequency

This approach not only saves you money each year—it also protects your insurability by keeping your claims history clean. If you’re only filing claims for major losses, your insurance company sees you as a lower risk, which can lead to better long-term rates and fewer coverage issues.

2. Have an Emergency Fund

Setting aside a cushion for small repairs means you won’t feel the pressure to file a claim every time something breaks.

3. Keep Up with Maintenance

Routine maintenance prevents minor issues from becoming major headaches. Take care of your home like you would your car—it pays off.

4. Be Strategic with Claims

If the repair cost is close to your deductible, it’s often better to pay out of pocket and preserve your clean record.

We’re Here to Help

At Vargas & Vargas Insurance, we understand that navigating insurance can be complex. Our goal is to provide you with the knowledge and support you need to make informed decisions about your coverage.

Have questions or need assistance with your policy? Give us a call at 617-298-0655. We’re here to help you protect what matters most.

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Is Your Massachusetts Condo Insurance Enough to Cover Temporary Housing After a Disaster?

Posted on by cvargas

What happens if your condo becomes uninhabitable after a fire or water loss?

Would your current insurance policy cover the cost of a temporary place to live?

In this article, we’ll explain exactly how “Loss of Use” coverage works in a Massachusetts HO6 personal condo insurance policy—and why many condo owners find themselves underinsured when it matters most.

You’ll learn how to calculate your coverage, what expenses are included, and how to protect yourself from major financial gaps if your condo suffers serious damage.

🏠 Understanding Loss of Use in Your HO6 Condo Insurance Policy

A personal condominium insurance policy—also known as an HO6 policy—is a package policy that includes different types of coverage. One of the most overlooked (yet critical) sections is “Loss of Use” coverage.

This part of your policy helps pay for additional living expenses (ALE) if your condo becomes temporarily uninhabitable due to a covered event like fire or water damage.

🔍 How Is Loss of Use Coverage Calculated?

In Massachusetts, your Loss of Use limit is typically a percentage of your personal property limit.

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

If your HO6 condo insurance policy includes $25,000 in personal property coverage, and your Loss of Use limit is 30%, your maximum benefit for temporary living expenses would be:

$25,000 × 30% = $7,500

That $7,500 would need to cover your monthly rent, utilities, and other additional living expenses while your damaged condo is being repaired.

🏚️ But Is That Enough to Cover Your Temporary Living Expenses?

Consider this: If your condo needs several months of repairs after a major loss, would $7,500 stretch far enough to pay for:

  • Rent on a comparable temporary apartment
  • Heat and electricity
  • Additional commuting or storage costs
  • Pet boarding or rental deposits

Meanwhile, you’re still responsible for paying your usual monthly mortgage, condo fees, and real estate taxes—none of which stop just because you’re displaced.

🛑 Your Condo Association’s Master Policy Doesn’t Cover This

Many condo owners mistakenly believe their Condo Association’s Master Insurance Policy will help in these situations.

But that policy typically only covers common areas and the structure itself—not your personal belongings or your cost of living while your unit is being repaired.

✅ What You Can Do Right Now: Review and Adjust Your Coverage

  1. Pull out your HO6 condo insurance policy.
  2. Review the Loss of Use section and see what your current limit is.
  3. Ask yourself: “If I had to move out for 3–6 months, would this be enough?”
  4. Talk to your insurance advisor about increasing your limits or adjusting your personal property coverage to boost your Loss of Use protection.

📣 Final Thoughts

Loss of Use coverage can easily be overlooked—until it’s urgently needed. By reviewing your current condo policy now, you can avoid costly surprises later and ensure your family is protected in the event of a major loss.

Need help reviewing your HO6 coverage or adjusting your policy?
Give us a call at 617-298-0655.
The Vargas & Vargas Insurance team is here to walk you through it, answer your questions, and make sure you have the right protection in place.

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How Much Homeowners Insurance Do I Really Need? 🤔

Posted on by cvargas

And Why Do Zillow, the Assessor, and My Insurance Company All Say Something Different?

What would it cost to rebuild your home if it were destroyed tomorrow?

Why does your insurance company ignore Zillow, Redfin, or your tax assessment?

💡 Here’s the truth: your homeowners insurance isn’t about what your home could sell for—it’s about what it would cost to rebuild it today.

📘 In this article, we’ll break down:

  • Why insurance companies use replacement cost (not market value)
  • Why Zillow and tax assessments aren’t accurate for insurance purposes
  • How to make sure your policy keeps up with inflation and construction costs

Why Your Insurance Value Doesn’t Match Zillow 🏡

Many homeowners are shocked when their insurance value is lower—or sometimes higher—than what they see online or on their property tax statement. Here’s why that happens.

Insurance Companies Use Replacement Cost, Not Market Value 🛠️

Your insurance policy is based on what it would cost to rebuild your home—not what you paid for it or what it would sell for. Market value includes a lot of variables that don’t apply to rebuilding, like:

  • Location desirability (schools, crime, views)
  • Land value (which isn’t covered by insurance)
  • Housing demand, interest rates, and local market trends

These factors don’t affect the cost of construction materials or labor, which is why replacement cost is more accurate for protecting your investment.

What’s With All These Different Home Values? 🧮

When researching your home’s value, you might come across three very different numbers:

🏷️ Market Value

What someone would pay for your home today—driven by supply, demand, and location.

💻 Zillow or Redfin Estimate

An algorithm-based guess using recent sales, not rebuilding costs.

🏛️ County Assessor’s Value

A government estimate used for property taxes—often lower than market value and irrelevant for insurance.

⚠️ None of these reflect what it would cost to rebuild your home after a disaster.

How Insurance Companies Actually Calculate Your Coverage (Coverage A) 📋

Look at your policy’s “Coverage A” line. That’s your rebuild estimate, not your home’s sale price.

Insurance carriers use advanced software called a Replacement Cost Estimator (RCE). Here’s what it factors in:

  • Total square footage (above ground and basement)
  • Construction style (ranch, colonial, two-story, etc.)
  • Age of the home (older = pricier to rebuild)
  • Interior features (flooring, countertops, ceilings)
  • Custom upgrades (windows, roofing, layouts)
  • Local material and labor costs

🛑 This number should reflect today’s rebuilding costs—not what your home sold for five years ago.

Rebuilding Costs Change Fast—Is Your Policy Keeping Up? 📈

Several economic and environmental factors can impact rebuilding costs, including:

  • 🌪️ Natural disasters (wildfires, hurricanes) = labor & material shortages
  • 🚛 Supply chain disruptions = price spikes (think COVID-19)
  • 💵 Inflation = rising cost of building materials year-over-year

If your insurance hasn’t adjusted for these changes, you could be underinsured.

When Insurance Value Is Higher or Lower Than Market Value 🔍

When Insurance Value Is Lower:
This often happens in areas with high real estate prices. That’s because land isn’t insured, and location-based premiums don’t affect rebuild cost.

When Insurance Value Is Higher:
Some homes are costly to rebuild even if they wouldn’t sell for much. This is common when:

  • The home is custom-built or historic 🏚️
  • You live in a rural area with fewer construction resources 🚧
  • Local building codes require expensive updates ⚙️

Why Zillow & County Assessors Don’t Help with Insurance 📉

🧠 Zillow and Real Estate Sites

  • Designed to estimate sale price, not reconstruction
  • Use algorithms and comparative sales data
  • Ignore current material and labor costs

🏛️ County Assessor’s Office

  • Calculates value for property tax purposes
  • Often separates land and building values
  • Typically understates real market value

Neither source helps determine what you need for adequate insurance coverage.

3 Steps to Make Sure You Have the Right Coverage ✅

1. Monitor Local Construction Costs 🏗️

Keep tabs on what builders are charging in your area. After major disasters, prices can spike.

2. Ask About Inflation Guard Endorsements 📑

Many policies include this by default—but not all. Make sure your coverage automatically adjusts over time.

3. Review Your Policy Every Year 🔁

Especially after:

  • Home upgrades (kitchens, additions, roofing)
  • Changes to local building codes
  • Major economic shifts

🗣️ Not sure what Coverage A should be? Speak with an independent insurance agent.

Final Thoughts: Make Sure You’re Covered When It Counts 🛡️

After reading this, you now know: Zillow, tax assessments, and market values don’t reflect what it would cost to rebuild your home. That’s why replacement cost is the only number that matters for insurance.

🧭 Next Steps:

  • Review your homeowners policy
  • Check if your Coverage A reflects current building costs
  • Talk to your insurance advisor to ensure you’re not underinsured

Need Help Reviewing Your Policy?

At Vargas & Vargas Insurance, we shop many financially strong insurance carriers—local and national—to make sure your policy reflects today’s real-world rebuilding costs.

📞 Schedule a free coverage review today and get peace of mind knowing your home is truly protected.

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