Insurance Check-Up

Insurance Check-Up

Life Changes and it’s Time for an Insurance Checkup

Having insurance policies is vital to gain great security and protection from unexpected problems. Ensuring everything in your life at an early stage is also a great idea.

While getting yourself and your house, vehicle, and assets insured is vital, you also need an insurance checkup to review your policies yearly. This allows you to ensure that the insurance coverage will be of help to you when your circumstances and lifestyle change. But if your insurance doesn’t cover you as it should, you need to make some changes to the policies or, even purchase new policies to cover your changing needs.

Here are some reasons why you need to opt for an insurance checkup.

Change in Family Status

Are you planning to get married or expect a baby? It would help protect your growing family by purchasing the right insurance plan. Insurance checkups will allow you to ensure whether the coverage is enough to support your entire family when you are not around. The loss of a family member through disability and death is also the right time for an insurance plan review.

Remodeling or Moving Your House

If you plan to remodel your house, your house value will surely increase. Similarly, if you move from the house, you might own a property with a higher value than the one you have before. Since your assets have increased, you need an insurance plan that covers these assets.

Retirement Time

When you decide to retire, you need something to rely on for your future expenses, especially final expenses, it’s vital to choose the right insurance plans to protect you properly. It would also be helpful if you had the proper insurance that will pay for your funeral, medical care, and debts.

Chance in Assets Value

Many people insure their jewelry and other assets to get the money if they get damaged or lost. But they forget the fact that these valuable assets increase over time. By keeping the coverage updated regularly for these valuable assets, you are protected in the event you lose them or they are stolen.

Discounts

Many insurance companies offer discounts on different insurance plans. This way, you can purchase the right insurance plans at much lower prices. So, if you have not received your discounts, it’s time to have an insurance checkup.

Bottom Line

Whether it’s life, house, vehicle, or assets insurance, insurance is not something that you purchase and forget. You need to always look for ways to lower your premiums and avail optimal benefits from your policy. For this purpose, you need to opt for an insurance checkup.

Missing Coverage

If you have any assets at all, an umbrella policy is a valuable protection. Home insurance and car insurance policies have liability limits that are often not high enough to protect you adequately. If you are found to be at fault beyond your liability limits, you may be required to pay the remainder of the money out of pocket. It could take all of your savings and assets and even your future assets to make that payment.

This will help you look for flaws in your insurance and allow you to get the features that you don’t have. Not only this but practicing this method can help you lower your premiums and get interesting discounts and offer. So, if you currently have any insurance, consider reviewing it.

At Vargas & Vargas Insurance, our clients enjoy customized insurance coverage to match their unique needs at incredibly affordable prices. Contact us today for a free insurance review or quote.

Home Renovations That Might Lower Your Massachusetts Home Insurance

Home Renovations That Might Lower Your Massachusetts Home InsuranceWhen you are getting ready to renovate your home, you may be thinking of additional costs such as your home insurance. Some improvements will typically lower your home insurance rates.

At Vargas & Vargas Insurance, we want Dorchester, MA homeowners to get their home renovations done right.

If you are thinking of renovating, you may want to add these modifications to your home to help with your Massachusetts home insurance policy.

Alarm System With Monitoring

When you have an alarm system on your home, with the audio or video monitoring, you increase your security. You are likely to see a reduction in insurance rates with an alarm system from an approved company.
You may not need to get your alarm company approved but check with your provider. Adding an alarm system during home renovations will also keep your new changes secure from safety threats.

Install a Sewer Backup Valve

Sewer backup is a significant home insurance risk. You can even update your home insurance policy to include coverage for this, as the costs are exorbitant.

Adding a sewer backup valve is easy, and can help you in the event of a sewer backup disaster. When water has nowhere else to go, it will come into the home. This is an expensive problem, and your insurance company knows this. Add a valve to the sewer and this could save you from this problem, and also from insurance costs.

Install a Sump Pump

A flood in the basement is a disaster. If you don’t have one already, a sump pump is a very affordable way to prevent flooding when bad weather hits. Overland flooding in Massachusetts is on the rise and could lead to an increase in claims. Add one to avoid this mess, and to potentially lower your home insurance costs.

Get a Quote

When you are renovating your home, you need to talk to your insurance company or update your home insurance policy. At Vargas & Vargas Insurance, we want Dorchester, MA homeowners to have the most thorough policy, through every change in love. Call us for a quote and update your policy today.

Progressive vs. Geico Insurance

younger couple comparing Progressive and Geico insurance coverages

All insurers are not created equal, nor are all insurance policies. We’re not here to sling mud or speak badly about any insurance provider! But we are going to explain how every insurance company has an ideal customer in mind, and show you some specific differences between Progressive and Geico insurance policies as examples. Our duty at Vargas & Vargas Insurance is to connect every customer with the right insurance policy. We work with many major insurance companies, and we can help take the guesswork out of any of your Massachusetts insurance policies. As always, if you have questions beyond the scope of this article, reach out to us today.

About Progressive

Progressive is a well-respected insurer with an excellent reputation. Their ideal client is a multi-line household — in case you hadn’t noticed “Flo’s” focus on insurance “bundling” in their advertising campaigns. Progressive will insure your home and autos, and the company offers life insurance choices, too. They provide great coverages for adults with multiple insurance needs.

  • Progressive provides homeowners insurance in-house; they don’t farm it out. 

About Geico

Geico began as an insurance provider for government employees and gradually broadened their scope. Geico’s focus is providing economical pricing on auto insurance, though they also insure recreational vehicles like motorcycles and RVs. They usually have somewhat better rates for some riskier drivers, like those who have had many at-fault accidents, those with many speeding tickets, and young inexperienced drivers.

  • Geico does not write their homeowners insurance policies. They can provide you a quote, but they “farm out” the policy to a partner.

Our Perspective

At Vargas & Vargas, we work hard to match the right type of insurance policy to our customers. Both Progressive and Geico homeowners policies, for instance, will provide replacement cost coverage. Still, they offer different bells and whistles, as well as different rates. 

Both Progressive and Geico homeowner’s policies provide medical payments to others in case of injury, liability coverage, and coverage for water or sewer damages. However, Geico and Progressive recommend lower limits of liability and deductibles on glass coverage, where most insurance professionals do not. And both companies offer varying discounts (like paid-in-full discounts, paperless billing discounts, multi-line discounts, and so on).

The biggest benefit of working with an independent insurance agent like Vargas & Vargas is that our licensed, independent insurance agency works with many insurance companies. We know their underwriting criteria and know their ideal customer. Our goal is to spend time with each prospective client to get a feel for your insurance needs. Then we can move forward getting quotes from the best companies for your unique situation

Need some Massachusetts insurance quotes? Let’s talk!

4 Reasons Your Home Insurance Premium Increases. Number 2 Will SHOCK YOU!

There comes that time of year when your Homeowner’s Insurance Renewal arrives in the mail.  You’re happily buzzing through your day when you read the bad news: your premium is increasing!

Panic sets in, then a fair amount of anger, and possibly a bit of anxiety. 

Whether your insurance is included in your mortgage payment through an escrow account, or you pay it separately on your own, panic sets in because you know this increase will impact your household budget. 

Anger arises due to the unfairness of this rate increase.
“How dare they!” “Why are they doing this to me?”

The anxiety is the worst part, but also the possible best part of your response to the premium increase.  Anxiety emerges because you truly don’t know why, nor do you understand, why your insurance carrier would increase your premium in such a seemingly arbitrary way.  But that same anxiety can fuel your desire to learn the answer to that question, and then to drive you forward to take action and seek a favorable resolution.

Here are 4 reasons why your Insurance Carrier might increase your Homeowner’s Insurance Premium; the second one will knock you out of your chair!

  1. Claims.  Have you had a claim in the past twelve months?  This is one of the most common reasons for a premium increase.  But this doesn’t always have to be so!  First, query your Insurance Carrier to determine if there are actions you can take to resolve the issue around the claim. For example, if the claim was due to a burglary, maybe installing a quality security system can relieve the premium-increase-pressure. If that doesn’t work, calling your Independent Insurance Agent is a great solution!  Your Agent can either advocate on your behalf with your current Insurance Carrier, or, find another Homeowner’s policy at a lower rate.
  2. Credit Score.  Insurance Carriers use a specific “Insurance Score” to predict the likelihood of a future claim.  The Insurance Score is different than your Credit Score, but uses similar methodology to create a score based on multiple data points.  Generally speaking, if you have good credit, then you’ll have a good Insurance Score.  But the Insurance Score is out of your control unlike your consumer credit score.  With a consumer score, in the event of an error on your credit report that impacts your score, Federal Regulations permit you to dispute the error and work on restoring your good score.  Your Insurance Score, on the other hand, is an unknown to the consumer.  To prevent arriving at a lower Insurance Score, monitoring and maintaining your consumer Credit Score is important.  Find out more at the Federal Trade Commission website here.
  3. Construction Costs.  Your Homeowners Insurance coverage is based on a calculation to repair or rebuild your home in the event of damage or disaster.  Therefore, the costs of materials and labor specific to your area can impact the calculation of those repair/rebuild costs.  If your local construction costs have increased due to market conditions, then it is a good likelihood your Insurance Premium can increase also.  The good news is that your Independent Insurance Agent can review your entire policy. We recommend a Twice-Yearly Review to determine if there are other areas of your policy where you can derive savings to offset any such increase in your annual premium.
  4. One of the most popular reasons for a rate increase is…..drum roll: State Filed Rate Increase. The insurance carrier will file a request with the state to allow for an increase on their policies that affect all policyholders. The only way around this is to call your independent insurance agent so they can shop other carriers who are competitive. Even after a filed rate increase, most insurance companies will eventually revamp their product portfolio to be more competitive. It’s basically a vicious circle.

Bottom Line: Reduce your anger, panic, and anxiety from an increase in your insurance premium by contacting your Independent Insurance Agent for the best and most expert guidance.

Contact our team at Vargas & Vargas Insurance to learn more about the benefits reviewing your insurance portfolio and what other options you have to reduce this emotional event.

Is Twice Yearly Too Often?

It’s often said that “insurance is boring.”  This notion probably leads many consumers to avoid communicating with their Independent Insurance Agent unless absolutely necessary.

Three “absolutely necessary” moments come immediately to mind:

  1. Increased Premium notification
  2. Notice to cancel
  3. A Claim

While you can only minimize your chances of ever having to make a claim on your insurance policy with smart, proactive and risk-aversion thinking, you can eliminate the first two instances of speaking with with your Agent.

The simple way to cancel out these two dreaded tasks is to speak with your Independent Insurance Agent twice a year. You might think you can cut that down to only once a year, around the time of your renewal period coming up.  But twice annually is truly the ideal scenario to deal with this otherwise “boring” task.

Checking in with your Agent in advance of renewal time allows you both to update each other on developments. 

For your part, you get to share news of:
* the new job
* the new child
* the vacation you’re planning
* the new jewelry or artwork
* the new addition to your home you’re planning. 

Your Agent may find this information fascinating and entertaining, but, more importantly your Agent can react to your news with important information on how these wonderful developments can affect your overall insurance plan.   And that call becomes worth its weight in gold.  Because your Agent can then review your current policies for how those policies cover your new life developments. 

If there are any challenges encountered therein, the kind that could affect a premium at renewal time, or worse, offer the carrier an opportunity to cancel the policy, your Agent has the chance to get out in front of the problem.

While you’re busy sharing wonderful developments, your Agent can also update you on any developments in the insurance realm that can either affect your current policies in a negative fashion (again, anticipating problems before they arise at renewal time), or potentially save you money by changing the coverages, policies, or even insurance carriers.

It’s not boring when you’re saving money and improving your insurance coverage.  Make that call to your Independent Insurance Agent. 
Twice. Every year.

Please schedule a call with us to discuss your policy portfolio to ensure you have adequate coverage at an affordable price.

To Escrow or Not To Escrow?

Many Homeowners have an escrow account for their mortgage payment. The purpose of the escrow account is to maintain a balance of funds the mortgage lender uses to pay bills on behalf of the Homeowner such as property taxes and insurance.

Many other Homeowners do not have an escrow account, even if they have a mortgage; they pay their own taxes and insurance directly.

Not every mortgage program requires that a Homeowner maintain an escrow account.  The general rules are the following for an escrow requirement:

  • Down payment less than 25% at time of purchase
  • Government Insured mortgage (FHA, VA), regardless of down payment at time of purchase

If your mortgage is not a Government-insured mortgage, and your down payment is less than 25% you still have the option to request a “waiver” of the escrow account requirement. Sometimes a lender will charge a premium—usually in the points paid—to waive the escrow requirement.

There is one primary benefit to having your property taxes and insurance included in an escrow account.  This is the monthly budgeting benefit.  Since the taxes and insurance escrow is included in your mortgage payment, then the mortgage payment is the only budget item you need to plan for.  

But there’s an important negative aspect to an escrow account.  The “set it and forget it” mentality that can easily set in.  That is, since your Homeowner’s insurance is included in your mortgage, many Homeowners not only forget to review their insurance on an annual basis to determine savings on premiums, but these same Homeowners often have no idea of the amount of their annual insurance premium, including when the premium increases.

If you have the opportunity to remove at least your Homeowners Insurance from your escrow account, you should do so.  This control allows you to discuss your insurance twice every year with your Independent Insurance Agent to lower your premiums and to take advantage of any developments that can improve the quality of your insurance coverage. 

The process to remove your Homeowners Insurance from your escrow account can be difficult but is worth the effort.  Contact your mortgage servicing lender today to find out if this option is available to you.

Archive Revival: Why Is Renter’s Insurance Important?

Most people fall into one of two categories: They either own their home or they rent it.

If you rent your home, you don’t need a homeowner’s insurance policy.

You need what’s called renters insurance. This type of insurance policy will ensure that you have the right coverage when you need it the most.

We’ve outlined below how homeowner’s insurance and renter’s insurance are similar and and how they differ. Here is our quick summary:

Property Protection

When you rent your home, you don’t own the physical property. As a result, you are not responsible for insuring the property. Instead, the insurance policy is the responsibility of the property owner.

This means that if there is damage to any part of the exterior and interior of the property including walls, ceilings, floors, doors, or windows, you are not responsible for filing or paying for an insurance claim.

Coverage for Belongings

Similar to a homeowner’s insurance policy, a renter’s insurance policy provides coverage for your personal belongings. You need to take inventory of your belongings to give an estimate on what it would cost to replace your belongings.

When you make your home inventory, make sure that you include everything that you own, including items like electronics, furniture, clothing, and jewelry. Also include any of your own personal appliances that are not owned by your landlord or apartment complex. That way, all of your stuff will be protected against perils like fire, smoke, theft, water damage, and more.

We recommend keeping the receipts of high valued items. We also recommend storing photos of each of your rooms so you have documentation of your belongings. This will help to ensure that you are covered in case of a total loss, but aren’t overpaying for coverage that you don’t need.

Reimbursed Living Expenses

If something happens to the place where you live, your renter’s insurance typically covers your living expenses for a comparable place until the damage is repaired and your home is once more inhabitable.

If your rental home or apartment is destroyed or deemed uninhabitable, call your insurance agent right away to find out what you should do so that reimbursement is allowed.

Liability Insurance

Another type of coverage that is typically included in both renters and home insurance is liability insurance. With this coverage, you are financially protected from the costs that rise if someone is injured at your home.

Depending on your insurance provider and the policy that you choose, this can include both medical costs and legal costs, which can get very expensive, depending on the injury sustained.

As always, all of the information above depends on your insurance provider and your specific policy.

We search several insurance providers to find the one that will give you the best coverage at a price that works for you and your budget.

Cost?

On average, the cost of a renters insurance policy is $120.00 per year for $10,000 of contents, including loss of use and liability coverage, Click here for more details) in Massachusetts.

If you package your automobile insurance policy with your renter’s insurance, most times, the savings by doing so more than covers the cost of the renter’s policy.

If you have any questions about the coverage included in your current policy, or if you need a new top of the line renters insurance policy quote, please call 617-298-0655 to speak with a representative here at Vargas and Vargas Insurance Agency.

How to Read Your Declarations Page(s)

Have you ever read an insurance contract? Not many have.

However, this voluminous document has everything you need to know about your insurance coverage and is essential in the event of a claim.

There is a short cut: The Declarations Page.

This document outlines and summarizes your insurance coverage. And it’s easy to read and only a few pages. It’s also key to determining if you have adequate coverage at an affordable price.

Policy Number and Policy Period  This is the top of your policy.  If you need to speak to your Independent Insurance Agent about your policy, you should direct your attention to this section at the outset of your conversation.

The policy period also helps for you to mark your calendar so you can be reminded of your annual review.

Maybe your credit score is improved or maybe your kids are grown. These are just a couple examples of life events that can occur that warrant an annual insurance review.

In addition to lifestyle changes, there is the likely possibility that insurance carriers have revamped their policies. You may be eligible for new discounts or more competitive pricing.

Coverages and Premiums.  The different coverages of your policy are presented line-by-line with the attendant premium in the right column, or in some cases, the discount in a line item, such as a security device.

The coverages are accompanied by the coverage limit. For your homeowner’s policy for example, the dwelling limit will show what your house would cost to be replaced. Notice your liability limit. This coverage limit should never be lower than the value of your home.

Total Annual Premium.  Down at the bottom of the page is the TOTAL PREMIUM for your Insurance Policy.  Usually this will show as an annual number, although that may be different depending on your payment plan for the policy.  You can also see different payment options for your premium; some insurance plans give you discounts depending on the frequency of payments. 

These declaration pages will help when it’s time to review with your independent agent. Know your coverage, know your renewal date so you can discuss with your agent if your coverage is maximized and your premiums are competitive.

Please read our other blogs related to annual insurance review suggestions.

You can reach us by calling 617-298-0655 or text us at 617-409-0329 for a free, no-obligation annual review. Click here to Visit our Contact Us page.

Managing Growth

Growth can sneak up on us.  Whether it’s your family or your business, one day you realize you’ve grown larger than when you started. 

  • Two cars when once there was one.
  • Five employees when previously you had two. 
  • A new spouse when you once lived alone. 

Growth is a good thing, it’s the keeping-up-with-growth that’s difficult.  Unless you’re organized and prepared, then growing becomes easy-peasy.

One area we often overlook, when growth occurs is whether it sneaks up on us or we prepare for it, is with our insurance.

Here’s where your Independent Insurance Agent comes in. We help your growth spurt feel smooth, organized, and best of all, prepared for any happenstance.

We often advocate that our clients undertake an annual review with us to see what coverages best suit their needs with natural changes over time. This helps to ensure quality coverage at an affordable cost whenever possible.

Our facility as your Independent Agent is there for you to advocate and manage when the “growth” word pops up.  Not only can we find the right insurance coverage for your new larger family or business, but we can help you control the costs of that insurance. 

Call us today so we can discuss all of your wonderful growth opportunities and reduce any growing pains so you experience the best possible insurance solutions.

You can reach us by calling 617-298-0655 or text us at 617-409-0329 for a free, no-obligation annual review. Click here to Visit our Contact Us page.

Back to School: Children and Insurance

Getting children prepped and off to school is often a hectic time. 

The last thing you want to think about is insurance. 
So, don’t.  That’s right, don’t think about insurance!

You’ve got too much on your plate, between clothing decisions, book-buying, book-bag purchases and packing. So, no, there’s no time for insurance.

What you can do, on the other hand, as your crazy, zany, busy early school days proceed is be mindful of things happening that could become an insurance event.  Putting your insurance into a “zen-like” part of your busy day can only help you avoid the dreaded-of-all-insurance-situations:
a claim!

Let’s start with young drivers.  They grow up so fast. When they pass their driver’s test, it’s a bittersweet. You have more freedom and they have more independence with getting from point A to point B.

You forgot to remember that she’d be asking to use the car to hang out with friends, attend school events, go shopping. Back to school time is a great time to be mindful, thinking of your young new-driver’s desires, and prepare yourself, and them, for that driving experience. 

It’s important to carefully remind them about safe driving techniques in order to avoid accidents and claims!

Rushing out the door on those first insane days of school can lead to other potentially dangerous situations, the kind that lead to insurance claims.

How about discussing safety measures before they even leave the house to get on the road? Such as, the coffee machine?  Does it have an Auto-Off feature? 

Too many household fires are caused by coffee machines burning through empty coffee carafes for hours on end.

There are other potentially dangerous events you can avoid when you add a small dose of “insurance mindfulness” into your crazy Back-To-School Days. 

Call your Independent Insurance Agent and ask her to help you become a Zen-Master of avoiding calamitous insurance claim events.  We promise that it’ll be better to enjoy watching your children run off to school in the mornings while you sip your coffee in peace.

Call us for a no-obligation, FREE insurance quote to help you determine that you, your family and your business are protected! You can reach us by calling 617-298-0655 or text us at 617-409-0329 for a free, no-obligation annual review. Click here to Visit our Contact Us page.