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

Name: Vargas & Vargas Insurance
Address: 1133 Washington St, Dorchester, MA, 02124
Telephone: 617-298-0655

Posted on July 13, 2025July 14, 2025 by cvargas

Why Are Some Insurance Companies Pulling Out? 🤔

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

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

1️⃣ Increased Claims & Natural Disasters 🌪️🔥🌊

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

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

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

2️⃣ Insurance Fraud & Rising Litigation Costs ⚖️

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

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

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

3️⃣ Inflation & Cost of Rebuilding 🏗️

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

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

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

4️⃣ Financial Stability & Reinsurance Costs 💰

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

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

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

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

✅ Work With an Independent Insurance Broker

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

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

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

Other Steps You Can Take

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

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

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

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

🔗 Related Resources:

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

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

Posted on July 11, 2025July 14, 2025 by cvargas

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

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

What Is Coverage B in a Homeowners Policy?

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

These include:

Fences
Detached garages
Sheds
Pools
Driveway lighting
Guest houses
Gazebos

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

How Much Coverage Do You Get for a Fence?

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

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

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

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

When Should You Add Extra Coverage?

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

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

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

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

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

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

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

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

On average, here’s what you can expect:

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

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

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

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

What Happens if You Don’t Increase the Limit?

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

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

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

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

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

Next step:

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

Conclusion: What You Should Do Next

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

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

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

Why Won’t My Insurance Company Replace My Roof?

Posted on July 9, 2025July 14, 2025 by cvargas

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

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

1. Insurance Covers Sudden Damage, Not Wear and Tear

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

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

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

🔍 Example:

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

2. The Age of Your Roof Matters

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

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

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

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

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

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

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

What Can Cause a Denied Roof Claim?

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

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

4. Certain Weather Events May Not Be Covered

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

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

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

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

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

5. Work With a Reputable Roofing Contractor for an Inspection

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

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

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

What You Can Do If Your Roof Claim Is Denied

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

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

Final Thoughts: Be Proactive About Roof Maintenance

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

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

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

What Is Special Loss Settlement on a Home Insurance Policy?

Posted on July 6, 2025July 14, 2025 by cvargas

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

Let’s break it down.

What Is Special Loss Settlement?

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

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

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

When Does Special Loss Settlement Apply?

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

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

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

How Is the Payout Calculated?

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

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

Whichever amount is lowest becomes the payout amount.

A Real-World Example

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

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

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

Why This Matters

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

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

Want to Learn More?

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

Talk to Someone Who Understands Your Needs

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

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

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

Posted on July 2, 2025July 2, 2025 by cvargas

Why is rental car insurance so confusing?

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

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

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

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

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

1. Your Personal Auto Insurance Might Not Fully Cover You

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

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

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

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

2. Credit Card Coverage Can Be Limited or Conditional

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

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

Credit card policies may also exclude:

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

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

Even minor damage can come with a major bill.

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

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

4. Peace of Mind While Traveling Is Worth It

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

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

So, Is Buying Rental Car Insurance Worth It?

If you:

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

Yes, rental car insurance is often worth the investment.

What to Do Next

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

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

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