FAIR Plan Insurance in Massachusetts: What You Need to Know

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

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

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

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

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

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

What Is the Massachusetts FAIR Plan?

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

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

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

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

Why insure with the FAIR Plan?

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

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

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

✅ What it covers:

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

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

❌ What it does not include or limits:

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

FAIR Plan vs. Standard Homeowners Insurance

Feature	FAIR Plan (MPIUA)	Standard Insurance
Availability	For high-risk homes	Available if home meets underwriting standards
Policy Type	HO-2, HO-3, HO-4 and HO-6	HO-2, HO-3, HO-4 and HO-6 (default) or broader options
Coverage	Major perils; limited extras	Full coverage + endorsements (liability, living expenses, etc.)
Valuation	Replacement cost (if qualified) or actual cash value	Typically replacement cost
Discounts	None	Multi-policy, claim-free, protective devices, and more
Flexibility	Limited customization	Highly flexible with broad market options

How Much Does the FAIR Plan Cost?

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

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

Should You Use the FAIR Plan?

Here’s the bottom line:

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

But it shouldn’t be your forever plan.

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

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

Let’s Talk Next Steps

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

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

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

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

Posted on August 10, 2025July 14, 2025 by cvargas

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

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

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

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

The Quick Answer (for skimmers)

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

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

What Is Form MVU-24? – Gift Transfers

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

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

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

What Is Form MVU-26? – Family Transfers

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

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

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

MVU-24 vs. MVU-26 – Detailed Comparison

Feature	MVU-24 (Gift)	MVU-26 (Family)
Who can use it?	Anyone giving a vehicle for free	Only immediate family members
Sales-tax exemption	✅ Yes	✅ Yes
$25 Gift-transfer fee	✅ Yes	❌ No
Proof required	Signed affidavit	Signed affidavit plus proof of relationship
Common examples	Friend gives you an old truck	Mom signs over her sedan to you

Real-Life Scenarios

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

Common Mistakes (and How You Can Avoid Them)

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

What to Bring to the RMV—Your Checklist

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

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

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

How to Compare Massachusetts Home Insurance Quotes

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

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

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

1. Understand What Home Insurance Covers

A standard Massachusetts homeowners insurance policy typically includes:

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

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

2. Compare Apples to Apples

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

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

Only then can you make a fair comparison.

Also, ask about available discounts, such as:

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

3. Why Work With a Local Independent Broker

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

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

Working with us gives you:

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

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

4. Smart Ways to Save on Premiums

To lower your homeowners insurance without cutting corners:

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

Ask About Affinity & Charitable Group Discounts

Westfield State Alumni (via MAPFRE)

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

Charitable Giving Discounts with Arbella

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

SBLI & Plymouth Rock

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

✅ Final Thoughts

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

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

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

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

Posted on August 3, 2025July 14, 2025 by cvargas

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

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

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

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

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

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

Why Doesn’t Insurance Cover Rodents?

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

When Rodent Damage Might Be Covered: Rare Exceptions

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

Electrical Fires Triggered by Rodents

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

Rodents Enter Due to a Covered Event

If a storm damages your roof, allowing rodents access:

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

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

What You Can Do: Rodent Prevention and Policy Enhancements

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

✅ Rodent Prevention Tips

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

✅ Understand Your Policy

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

✅ Reduce Risk of Secondary Perils

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

What This Means for You as a Boston Homeowner

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

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

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

Conclusion: Wrapping It Up

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

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

Posted on July 30, 2025July 14, 2025 by cvargas

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

Section 1: What Is an HO6 Condominium Insurance Policy?

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

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

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

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

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

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

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

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

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

📌 If your policy has:

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

👉 Then your maximum ALE payout is $7,500

Now ask yourself:

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

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

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

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

🚫 It won’t cover:

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

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

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

Here are 3 steps you should take today:

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

Prepare Now—So You’re Not Scrambling Later

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

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

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

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

Posted on July 29, 2025July 26, 2025 by cvargas

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

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

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

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

Why Summer Is Prime Time for Car Theft

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

Summer brings:

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

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

🚘 1. Take Your Keys — Always

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

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

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

🚘 2. Lock Up Everything — Not Just the Doors

Make it a habit to:

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

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

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

Where you park is half your protection.

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

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

Conclusion: The Best Theft Protection Is Prevention

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

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

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

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

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

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

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

Posted on July 27, 2025July 14, 2025 by cvargas

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

Section 1: Is Riot Damage Covered by Homeowners Insurance?

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

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

This includes:

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

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

Section 2: What About Renters Insurance?

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

For example:

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

Section 3: Are Vehicles Covered During Riots?

Only if you have comprehensive auto insurance.

✔️ Comprehensive coverage includes:

Damage from riots
Vandalism
Fire
Theft
Broken windows

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

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

Section 4: 3 Smart Steps to Take During Civil Unrest

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

Stay Calm, Covered, and Informed

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

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

Do Insurance Brokers Really Take 80% of Your Premium?

Posted on July 25, 2025July 25, 2025 by cvargas

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

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

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

Where Does the 80% Claim Even Come From?

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

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

What Insurance Brokers Actually Earn

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

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

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

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

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

Why a Broker Can Actually Save You Money

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

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

Agents = 1 option.
Brokers = Multiple.

Which one gives you more leverage?

Is a Broker Right for Everyone?

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

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

Conclusion: Let’s Get You Better Coverage for Less

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

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

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

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

➡️ Next Step:

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

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

Posted on July 23, 2025July 14, 2025 by cvargas

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

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

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

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

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

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

Here’s why holdbacks are used:

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

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

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

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

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

🪑 Example – Replacing a computer

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

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

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

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

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

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

🔍 Know your policy type:

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

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

To get the full payout, including the holdback:

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

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

Protect Yourself by Understanding the Process

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

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

Here’s the rewritten section with your requested focus:

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

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

Posted on July 20, 2025July 14, 2025 by cvargas

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

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

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

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

These people are usually protected for:

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

Section 2: Who Is NOT Covered Automatically?

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

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

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

Section 3: What About Liability Coverage?

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

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

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

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

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

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

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

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

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

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