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

Posted on 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.
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Home Insurance and Your Septic System

Posted on by agentinsure

If your home in Massachusetts relies on a septic system, you already know how essential it is to your property. However, when something goes wrong, many homeowners are surprised by what their insurance covers—and what it doesn’t. Understanding how your policy handles septic system issues can save you from unexpected stress and costs down the road.

What’s Usually Covered

A standard homeowners insurance policy through Vargas & Vargas Insurance, serving Dorchester, MA, is primarily designed to protect your home and attached structures from sudden, unexpected damage. For example, if a storm causes a tree to fall and crush part of your septic system or if a fire damages nearby equipment, your insurance may help cover the repairs. These are examples of direct, covered perils.

However, most septic system problems stem from gradual wear and tear, inadequate maintenance, or age. If the system backs up because it wasn’t pumped on time, or pipes crack due to years of wear and tear, your insurance typically won’t cover those repairs. In these cases, the costs are the homeowner’s responsibility.

Options for Extra Protection

Some insurance companies offer endorsements that can be added to your homeowner’s policy. These endorsements provide additional coverage for underground service lines, including septic systems, and may help cover damage caused by shifting soil or invasive tree roots. This modest addition to your policy could save you thousands if an unexpected issue arises.

A Good Time to Review Your Policy

Septic system troubles can be messy and expensive. That’s why it’s a good idea to review your homeowner’s insurance and consult with your Massachusetts agent at Vargas & Vargas Insurance, serving Dorchester, MA. We can help you evaluate your current coverage and determine if adding extra protection is a smart move for your situation. Taking the time now can ensure you’re better prepared for surprises later.

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

Posted on 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

  1. ✅ Review your policy limits and deductibles
    Make sure your coverage amount still makes sense based on today’s replacement costs.
  2. ✅ Document your belongings
    Keep photos or videos of valuables in case you need to file a claim.
  3. ✅ 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.

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

Posted on 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:

  1. ✅ Complete the repairs or replacement
  2. ✅ Save receipts, invoices, or estimates
  3. ✅ Submit documentation to your insurance company
  4. ✅ 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.

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

Posted on 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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You’re Being Sued for Something That Happened on Your Property?

Posted on by cvargas

Here’s What You Need to Know Before It’s Too Late

Have you received a letter saying you’re being sued for something that happened at your home or on your property?
Or, are you wondering what your insurance covers—and what it doesn’t—when someone gets hurt or claims damages?
This kind of letter is more common than you might think. Whether it’s a neighbor tripping on your steps, a contractor getting injured in your yard, or even a guest’s dogfight with yours—liability lawsuits can blindside homeowners and renters alike.
In this article, we’ll break down what happens if you’re sued, how your insurance policy helps (or doesn’t), and what steps you can take right now to protect yourself—including why you should review your liability coverage today.

Section 1: Why You Might Be Sued for an Incident on Your Property

Accidents happen—but when they happen on your property, you can be held legally and financially responsible.

Common reasons people get sued include:

  • A guest trips and falls on an uneven walkway
  • A tree from your yard falls on a neighbor’s car
  • A child gets injured on your trampoline or pool
  • A contractor slips on icy steps while making repairs
  • A visitor’s pet is injured by your pet

Important: Even if it wasn’t your fault—or you weren’t even home—you can still be named in a lawsuit.

Section 2: What Does Homeowners (or Renters) Insurance Cover in a Lawsuit?

If you’re insured, your policy may include personal liability coverage, which can help pay for:

  • Legal defense costs (even if you’re not found liable)
  • Medical expenses for the injured party
  • Settlement amounts or court judgments up to your coverage limit

💡 Most standard policies offer $100,000–$300,000 in liability coverage.

But what if your case exceeds that? Or what if the incident isn’t covered?

Section 3: 3 Critical Questions to Ask About Your Liability Coverage

Before you’re in legal trouble, review your policy and ask:

  1. Do I have enough liability coverage for a serious claim?
    A bad injury or lawsuit could easily cost more than $300,000. If you have assets (like a home or retirement savings), you could be personally responsible for the rest.
  2. Does my policy cover incidents involving guests, contractors, or pets?
    Some policies exclude specific activities or animals. Always check exclusions.
  3. Should I consider umbrella insurance?
    Umbrella policies add extra liability protection—usually in $1 million increments—for a relatively low cost.

Section 4: What to Do If You Get a Lawsuit Letter

If you receive a letter or legal notice:
✅ Don’t ignore it – Lawsuits are time-sensitive.
✅ Notify your insurance company immediately – They’ll guide you through next steps.
✅ Avoid contacting the person suing you directly – Let your insurer or lawyer handle all communication.
✅ Gather documentation – Photos, witness statements, and your policy details will be important.

Stay Protected and Proactive

At the end of the day, anyone can face a lawsuit—even for something they didn’t directly cause. And when it happens, you’ll want to be sure your insurance policy actually protects you. Now that you know what personal liability coverage can and can’t do, it’s time to take action.

✅ Review your coverage.
✅ Ask the right questions.
✅ Speak to a trusted expert.

🔐 Need help reviewing your policy or increasing your protection?
Reach out to the team at Vargas & Vargas Insurance at 617-298-0655, or connect with your independent broker today.
We’re here to make sure you’re never left exposed.

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

Posted on 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 😊

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What Is Special Loss Settlement on a Home Insurance Policy?

Posted on 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:

  1. Replacement Cost
    The full cost to rebuild your home using materials of like kind and quality—without accounting for depreciation.
  2. 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.
  3. 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.

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5 Home Insurance Mistakes That Could Cost You Big!

Posted on by cvargas

Think you’re fully protected just because you have homeowners insurance?
Would your policy really cover you the way you expect if disaster hit tomorrow?

You’re not alone if you’re unsure. Many people assume they’re covered for anything that could go wrong. The truth? Most homeowners are underinsured — and don’t even realize it until it’s too late.

In this blog, you’ll learn the top 5 mistakes people make when buying homeowners insurance — and how to avoid them. We’ll show you how to make smart, informed choices so your coverage actually protects your home and your finances.

❌ Mistake #1: Not Buying Enough (or the Right) Coverage

A lot of people think the amount they paid for their home is the amount they should insure it for. But that’s not how insurance works.

Here’s the issue:

  • Home values change.
  • Construction costs go up.
  • If your home burns down or gets severely damaged, you need enough replacement coverage to rebuild it — not just repay your mortgage.

Don’t fall into the “cheapest quote” trap. A cheaper policy might leave you underinsured when it matters most.

✅ What to Do Instead:

  • Insure your home for its replacement cost, not its purchase price.
  • Review your policy every year, especially after renovations.
  • Work with an independent agent who can help you compare policies and tailor coverage to your real needs.

❌ Mistake #2: Not Knowing What Your Policy Doesn’t Cover

It’s easy to assume insurance covers everything. But that’s just not true. In fact, standard homeowners policies have exclusions that might surprise you.

Some common things not covered:

  • Flooding
  • Earthquakes
  • Sewer backups
  • Mold or foundation damage
  • High-value items like jewelry or art
  • Poor maintenance (like a leaking roof you ignored for months)

✅ What to Do Instead:

  • Ask questions. Know what’s covered and what isn’t.
  • Consider extra coverage for floods, valuables, and water backup.
  • Remember: homeowners insurance is not a maintenance plan — it won’t cover wear and tear or neglect.

❌ Mistake #3: Not Shopping Around

Getting one quote is quick, but it’s also risky. You could end up with:

  • Higher premiums
  • Poor claims service
  • Gaps in coverage you don’t see until it’s too late

Every insurance company prices differently — and not all offer the same benefits.

✅ What to Do Instead:

Let Vargas & Vargas Insurance shop for you.
We compare quotes from many top-rated carriers so you get options — and expert help choosing the best fit for your needs.

❌ Mistake #4: Not Updating Your Policy Over Time

Your home changes. Your life changes. Your insurance should change too.

If your policy is outdated, it may not reflect:

  • Renovations or home upgrades
  • New valuables (like electronics, collectibles, or jewelry)
  • Safety features (like a new alarm system)
  • Liability risks (like a trampoline or swimming pool)

✅ What to Do Instead:

  • Review your policy once a year.
  • Call your agent when anything major changes.
  • We’ll help you adjust your coverage — no pressure, just smart protection.

❌ Mistake #5: Ignoring Discounts and Bundling Opportunities

You might be paying more than you need to — simply because you didn’t ask about discounts.

Common savings opportunities:

  • Bundling your home and auto insurance
  • Installing security systems or smoke detectors
  • Raising your deductible
  • Staying claims-free for several years

✅ What to Do Instead:

  • Ask your agent to review all possible discounts.
  • We can help you find hidden savings that most people miss.
  • A short phone call could save you hundreds of dollars per year.

Final Thoughts: Make Smart Moves Now, Save Yourself Later

Homeowners insurance doesn’t have to be confusing — but it can cost you if you don’t pay attention.
Avoiding these 5 mistakes could save you thousands and give you real peace of mind.

Let’s recap:

✅ Don’t underinsure — know your home’s true replacement cost
✅ Understand what’s not covered
✅ Don’t settle for one quote — compare policies
✅ Update your policy as life changes
✅ Ask about discounts and bundling options

Need Help Reviewing Your Coverage?

At Vargas & Vargas Insurance, we’ve helped Massachusetts families protect their homes for over 45 years. We shop with multiple companies, break things down in plain English, and give honest advice — no pressure.

📞 Call us at 617-298-0655
💬 Visit vargasinsurance.com
✨ We welcome your referrals, too — thank you for trusting us.

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Dwelling Fire Insurance vs. Homeowners Insurance: Which One Do You Need?

Posted on by cvargas

At first glance, homeowners insurance and dwelling fire insurance might seem similar—but they serve very different purposes. One protects your primary home and everything inside it, while the other covers properties you don’t live in full-time.

Do you own multiple properties or a vacation home? Do you know if homeowners insurance is enough to protect them?

What if your rental property burns down—would your insurance cover the loss?

In this guide, we’ll break down the key differences between homeowners insurance and dwelling fire insurance, so you can ensure your properties are properly protected.

We’ll compare coverage, explain when each policy applies, and help you determine which one is right for you.

Homeowner’s Insurance

Homeowner’s insurance is intended to safeguard your house and possessions in the event of calamities that harm your home. This policy covers fire damage to the structure of your main abode and its contents. Your primary residence is usually where you spend most of the year, which typically contains a majority of your belongings, giving your homeowner’s policy coverage for both the house and most belongings.

Dwelling Fire Insurance

If you own multiple properties or have more than one residence on your land, your homeowner’s insurance may not be adequate in the event of a fire. Dwelling fire insurance provides coverage for houses you own but doesn’t occupy most of the time. This could include vacation homes, cabins, cottages, or rental properties.

Dwelling fire insurance is a type of policy that covers houses other than your main residence. Just like homeowner’s insurance, it will pay for the expenses associated with restoring or rebuilding after a fire. It also safeguards any structures connected to the house, such as decks, porches, and attached garages. On the other hand, dwelling insurance does not provide protection for liabilities or personal items inside the house.

When Do You Need Dwelling Fire Insurance?

📌 If You Have Credit or Claim History Issues

If poor credit or past insurance claims make it hard to get homeowners insurance, a dwelling fire policy can provide basic fire protection.

📌 If You Own Rental Properties

Rental homes face risks like tenant negligence or fire hazards—a dwelling fire policy ensures you’re covered.

📌 If You Own a Vacation or Secondary Home

Less frequent use = higher fire risk. A dwelling fire policy protects the structure even when you’re not there.

📌 If Your Home is Vacant or Undergoing Repairs

Vacant homes are high-risk for fires, vandalism, and electrical issues.

Some policies also offer liability coverage if fire spreads to a neighbor’s property.

Investment Properties:

Fire dwelling insurance is frequently used to protect rental homes from the risks of fires, which are often caused by negligent actions. Even if you don’t live in the home, you can’t control what happens. In addition to covering the costs of rebuilding after a fire, this type of insurance pays for tenants to move as well as reimburses you for lost rental income.

Secondary Residences:

If you own a vacation home or cottage that you only visit periodically, it is important to have protection against fire damage. Fire dwelling coverage can cover secondary residences, and additional coverage can be added to protect the contents of the home.

Vacant Property:

A fire dwelling policy can be a great asset for a home that is up for sale or undergoing repairs. Unoccupied homes are particularly vulnerable to a variety of potential fire hazards such as electrical shorts, vandalism, and even lightning strikes. Without someone present to take notice of a potential problem, or take action to prevent it, the risk of a fire breaking out is much higher.

Fortunately, a fire dwelling policy can provide a degree of protection for a home in this situation. This type of policy will often provide coverage for necessary repairs or replacement of any damaged items. In addition, it may also offer liability coverage in the event that a fire causes damage to neighboring properties. By taking out a fire dwelling policy, homeowners can rest assured that their home is covered in the event of an unexpected fire.

✔ Now that you understand the key differences between homeowners insurance and dwelling fire insurance, you can make an informed decision about protecting your property.

✔ Choosing the wrong policy—or failing to have the right coverage—could leave you financially exposed in the event of a fire or other disaster.

✔ Your next step? Speak with an insurance expert to determine which policy best fits your property’s needs.

At Vargas & Vargas Insurance, we specialize in finding the right coverage for every property owner. Contact us today at 617-298-0655 or Contact us today to get expert guidance and a custom quote.

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