Vargas & Vargas Insurance

1133 Washington St
Dorchester, MA 02124

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Independent Insurance Broker, Why It’s To Your Advantage

An independent insurance broker is an agent who provides a wide selection of policies from many different insurers to satisfy the customer’s requirements. On the other hand, captive agents or direct writers, including companies such as Allstate, Liberty Mutual, Farmers and USAA and Amica among others, are dedicated to one particular insurer and only offer that company’s insurance products.

How much does it cost to work with an independent insurance broker?

Using an independent insurance broker does not come at any additional cost compared to dealing with a direct write or captive insurance agent or going to the insurance company directly. We can make the process simpler for you by obtaining quotes from a variety of insurers, and we may even be able to find you a better deal than if you were to shop around on your own.

Why work with an independent insurance broker?

Unlike major national insurers who need to invest huge amounts of money in advertisements instead of their communities, our drive is to offer customized service and the most competitive rates for our customers in our community. And we are involved in our community. We contribute to local companies, charities, and other groups and provide advice and assistance. We hire and spend our income in our communities.

Having more options

Having a variety of options is always beneficial. A local independent insurance broker can help you get the best-tailored coverage at an affordable rate. As opposed to being tied to one specific insurer, we will be able to partner with you to figure out the best policy for your needs.

As an independent insurance broker we are called “independent” because, unlike captive agents and direct agents who only represent one company, we have the flexibility to shop around and find the best coverage from many different insurance companies that fits your individual needs. We take the time to understand your unique situation and identify the coverage that best meets your requirements.

We’re Your Advocate

Working with an independent insurance broker has many more additional benefits, like We may be able to provide discounts and other advantages that large national companies cannot.

Working with an independent insurance broker has additional benefits.

The customer service provided by Vargas & Vargas Insurance is unparalleled. An automated chatbot may be able to provide a polite and friendly interaction, but nothing can replace the human connection and personal relationships.

Our team will stay with you through all of life’s ups and downs. You are welcome to contact us whenever you need help – whether it’s finding insurance for a new driver, buying a new home, filing an insurance claim if something unexpected happens, or anything in between. We make ourselves available via phone, email, text message or face-to-face meetings. No request is too big or small – we will review your policy details and refer you to experienced professionals such as real estate agents or mortgage lenders.

The right insurance at the right price for you

An independent agent has access to a variety of insurance carriers and coverages, which is an important distinction to note. This is because it will likely save you time, money, and frustration in the future. Gone are the days of trying to find another insurance agency to work with. At Vargas & Vargas Insurance, we don’t settle for good enough or one-size-fits-all. We are committed to finding you the right coverage at the right price.

We know you

And as an independent broker can serve as your insurance advocate over the course of your life. This local expertise can bring many benefits, such as getting to know you personally and understanding the changes in your life and circumstances over time. We offer advice and guidance and may have information about particular risks in the vicinity, which can aid you in preventing any gaps in your insurance protection.

And we always have time for you. You can reach Vargas & Vargas Insurance at 617-298-0655 and be glad that you did.

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Do This When Selling Your Home

Selling a home can be both exciting and stressful. There are common mistakes that often result in costly outcomes, so it’s important to do your research before beginning the process of selling your home. Taking precautions will ensure a smoother sales experience with greater financial rewards.

Selling without the Use of a real estate agent

Real estate agents possess a wide range of knowledge and expertise to help you get the most out of your home sale. They are familiar with local market values, have experience selling homes and can point out flaws that need attention before listing. Agents also leverage their professional networks to spread word about new listings quickly, know what makes buyers qualified for purchase negotiations and handle all legal paperwork involved in closing the deal.

When selling your own home, you are responsible for the listing, showing and legal process. However, this can be difficult due to many buyer’s agents not wanting to show FSBO homes. This limits potential buyers significantly and could result in a financial loss of between $60-90k.

Avoiding Major Maintenance

Before selling a home, renovations like new garage doors and kitchen remodels can increase the value. However, it’s important to not replace essential repairs with these improvements as buyers will usually request an inspection post-offer; poor results could lead to delays or cancellations of the deal. Doing major repairs yourself may cost more initially but you’ll have control over who takes care of them.

Failing to understand the expense of selling

Selling a home can involve more than just paying realtor commission, which is usually 3.8-4.6% of the sale price plus 0.5-2.8% in closing costs; additional expenses may include repairs necessitated by an inspection report from lenders before they approve a loan.

If you decide not to make repairs, the buyer may offer a lower price for your home. The cost of staging will depend on how many rooms and what kind of decor is needed; buyers might also ask for concessions like keeping some appliances or having the seller cover their closing costs.

Failing to Have Adequate Insurance

Even if you have already paid off your mortgage, it is important to maintain a homeowner’s insurance policy. This form of insurance not only safeguards your home and belongings from disasters, but also provides liability coverage should an accident occur on your property that causes injury to someone. Furthermore, if you have moved away from the home before selling it, the lack of occupancy may increase its vulnerability to vandalism or theft.

Discuss the details of the sale with your real estate agent before you put your house up for sale and make sure your insurance policy will give you the necessary protection during the selling process.

Failing to Get Your Home Ready for the Sale

Your home is important to you for many reasons, but potential buyers want to imagine it as their own. By taking away unnecessary objects and adding tasteful decorations, you can make your home more attractive during viewings. Clutter can give the impression that the space is smaller than it actually is, and personal items can stop people from picturing themselves living there. Research shows that staging a house before showings decreases the amount of time it takes to sell by 31%, and increases its value by 6-10%. If you don’t prepare your house for showings, you could miss out on offers and take longer to find a buyer.

The best of the BEST

Vargas & Vargas Insurance only works with the finest real estate agents, mortgage specialists, and lawyers. Please contact us if you need a recommendation for one of these professionals.

Homeowners often don’t consider the consequences of pricing a house too high or refusing to negotiate, which can lead to a prolonged time on the market and a lower sale price. To avoid these issues and make your home sale go more smoothly, it is important to prepare beforehand.

For insurance coverage that will help protect you throughout the selling process in Massachusetts, contact Vargas & Vargas Insurance at 617-298-0655, your local independent agent, today!

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Child Turning 18, What Are Your Parents Rights?

When your child reaches the age of 18, a lot of things change. They are allowed to move out and vote, may join the military, and even come home with tattoos or lottery tickets. It can be frightening to consider that once they reach this age, you no longer have the legal authority to make decisions on their behalf; not even in an urgent situation.

You won’t be able to access their medical, school, or financial records in such cases. We understand how intimidating this can be for parents, as many of our staff at Vargas & Vargas Insurance have children who either have become adults or are close to it.

We assist clients from all backgrounds and ages in ensuring they get the right insurance coverage to fit their family’s situation. We have put together some tips in this article that can help ensure both you and your grown child are taken care of during a crisis.

Obtain consent to disclose protected health information according to HIPAA regulations

Once your child reaches the age of 18, it is not possible for you to have access to any of their medical records. Therefore, if your child consents, they should sign a HIPAA (Health Insurance Portability and Accountability Act) release form. Once this form has been signed by your child, healthcare providers will be able to share medical information with you about them. This means that if the situation arises where your child cannot communicate with you regarding a medical emergency, their doctor will be able to inform you on what is happening.

Sign a power of attorney

Apart from health considerations, parents must also consider financial security for their child once they reach 18. If the adult child is unable to take care of their own finances, what can be done? A power of attorney allows a parent to be appointed as the designated person to handle the financial matters on behalf of their son or daughter. This would include accessing bank accounts, managing credit card companies, and taking care of contracts, loans, and enrollment agreements.

Think about getting life insurance.

It can be difficult to think about the death of your child. However, if this were to occur, you would want to make sure that you had the financial means to manage their final arrangements. As soon as your child reaches 18 and starts living independently, their chances of being in danger increase. If you are not able to pay for death-related costs at this time, life insurance may be a good option. If your child gets insurance and designates you as the beneficiary, funds will be provided upon their passing for whatever expenses may arise.

Life insurance isn’t only applicable in the event of a death. If a person has the proper riders attached to their policy, they can guarantee that they will be able to get insurance in the future as their needs change.

The cost of a life insurance policy rises with age. This means that if you buy a policy when you’re younger, the cost will be lower for the length of the policy, and no one can take it away from you as long as you continue to pay the insurance premium.

Vargas & Vargas Insurance is committed to providing assistance and support to families and individuals for more than four decades. Our staff are available to answer any queries you may have, so don’t hesitate to reach out by dialing 617-298-0655.

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HUD’s New Decreased Insurance Rates Buying It’s Cheaper to Buy a House

The Department of Housing and Urban Development has announced a reduction in Mortgage Insurance Premiums (MIP) on FHA loans. This change is set to go into effect on March 20, 2023, and will cut premiums from 0.85% to 0.55%, for most mortgages insured by the FHA. This substantial reduction in premiums is expected to save homeowners and homebuyers an average of $800 per year, which is a significant amount of money for many households.

Making Home Ownership More Affordable

HUD’s goal is to make homeownership more affordable and accessible for all. This could be done by reducing the amount of money that is needed downpayment or closing costs. This would help stabilize the housing market and make it easier for more people to get into it.

What Does This Mean

The FHA mortgage insurance premium reduction means that borrowers will now be able to purchase homes with a down payment as small as 3.5%. This is great news for those who are looking to purchase a home, as it becomes more accessible with this reduction. Additionally, the interest rates are lower this spring, which makes it a good time to buy a home.

At Vargas & Vargas Insurance, we understand the importance of saving money, especially when it comes to your mortgage payments. With the recent rule changes, you can expect to save money on your monthly mortgage payments, which could add up to big savings over the life of your loan.

But that’s not all. We can also review your Home, Automobile, Business and Life Insurance policies to make sure that you are properly protected at the best possible price. We are committed to helping you save money wherever we can.

Contact our team today at 617-298-0655 to learn more about how you can save money on your mortgage payments and other insurance coverage. Our knowledgeable staff is always available to answer any questions you may have and to provide you with the best advice for your individual situation. Don’t wait any longer – call us today to get started!

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Mistakes to Avoid When Looking for a Condo Master Policy Plus Pro-Tip

When you’re a condominium property manager, everyone comes to you with varying needs. You are responsible for everything from hiring personnel to maintenance work and repairs. This means you need to have a good master policy that is affordable and realistic for the needs of your HOA.

Unfortunately, a lot of property managers don’t do much shopping around or take the cheapest alternative regardless of coverage.

Today, let’s take a look at the mistakes you want to avoid when looking for the best master policy for your condo.

What is a Master Policy?

Insurance for condominiums is split into two distinct elements: the HO-6 policy and the master policy.

The HO-6 policy is used to cover various liability claims and personal belongings within a unit. This includes expenses that might occur if someone is unable to stay in the residence should something happen that is covered by the master policy.

A master policy is essentially one that blankets multiple properties or perhaps employees. In this case, we’re talking about one that covers all of the units within the condominium. This is often cheaper and easier to manage as each individual unit has the exact same coverage aside from the HO-6.

Things to Avoid When Shopping for a Condo Master Policy

1. Misunderstanding the Coverage

There are a few policies that you need to be aware of: bare walls, single entity, and all-inclusive. To choose the right one, you need to understand what each of these entails.

2. Not Properly Vetting

The last thing you want to do is rush through the insurance process. Don’t skimp on the vetting process and make sure you measure proposals against the market average.

3. Not Providing Accurate Details

It’s OK to use a general template when querying for proposals from insurers. Just make sure you don’t copy it word for word. Provide the right details about your property and don’t ask about things that are irrelevant.

4. Settling On the Cheapest

Sure, you want to save money on the master policy. But you shouldn’t only prioritize the price when looking at policies. Have an agent help by disclosing the HOA budget and what is available.

5. Too Many Agents or Insurers

Having too many agents helping with the process can slow it down or create a layer of confusion when looking for a master policy. It’s better to work with one agent who has access to many insurance providers than to have too many cooks stirring the pot.

6. Not Consulting HOA or Board of Directors

As a property manager, it’s your responsibility to contact the condominium board of directors and the HOA before requesting master policy quotes. For one thing, the HOA often has a firm grasp of what the community needs in terms of coverage.

7. Poor Management of the Proposal Process

Improper management of the proposal process can cost time and money for the HOA. Not to mention frustrating the unit owners. Take the time to ensure every element is addressed and don’t rush through the process.

Find the Best Master Policy for Your Condo

Just as you would with homeowners or auto insurance, it’s ideal to initially shop around and find the best master policy for your needs. And at Vargas & Vargas Insurance, we use our network of insurers to help you do just that. Contact us today to find out how we can help you get the best master policy for your condo.

Your unit owners don’t want to just settle, so why should you?

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Massachusetts Auto Surcharge Appeal Plus Pro-Tip

Every location has its own practices when it comes to insurance premiums and what affects them. In this case, I’m talking about the insurance surcharge you could face after an accident in Massachusetts. Today, I break down the steps for the appeal process and why it’s important.

What is an Insurance Surcharge?

A surcharge on your insurance is a fee that is added to your premiums. This usually happens if you’re regularly involved in at-fault accidents, pay your premiums late, or have a lapse in coverage.

However, a surcharge can also affect your insurance if you’re simply adding another vehicle to the policy. In those cases, though, you can work with the insurer to see if there are discounts available for multiple-car policies.

In this article, I’m focusing on appealing the insurance surcharge that comes after an accident.

Steps to Appeal the Insurance Surcharge

The insurance surcharge will kick in if the insurer deems that you are more than 50% at fault. According to Massachusetts law, you have up to 30 days from the notice of the surcharge to file an appeal with the Division of Insurance Board of Appeal.

1. Complete and submit the Appeal Form that is located on the backside of the Notice of At-Fault Accident Determination. You’ll need to enclose the $50 filing fee made payable to the Commonwealth of Massachusetts. The address is located on the Appeal Form.

2. You will receive a notice in the mail acknowledging the receipt of your appeal.

3. In approximately three weeks, you’ll receive a hearing notice. At this hearing, you can attend yourself, submit a statement at least five days before the hearing, or have a representative appear on your behalf.

4. The hearing will last around 15 to 20 minutes to determine the justification of the surcharge.

5. About two to four weeks after the hearing, you’ll receive a decision from the Board of Appeals as to whether the insurance surcharge will remain.

Note: If the surcharge is added to your insurance premiums, you’ll still have to pay the additional amount. Otherwise, the insurer can cancel your policy.

How Much Will Rates Increase if You Don’t Appeal?

The increased amount of your insurance premiums will depend on a lot of factors. It’s not exactly a one-size-fits-all answer, to be honest.

For example, rate increases are subject to:

  • your previous driving record.
  • how many years you drive that are accident-free.
  • how often you file insurance claims.

Essentially, it all comes down to how much of a risk the insurer deems you for coverage. If you have a spotless driving record and make your payments on time, the increase might be nominal.

Use the Appeals Process Correctly

The appeals process is meant to help the innocent avoid paying out when accidents were clearly not their fault. As long as you explain your position to the magistrate, and are not at fault, you may avoid these extra fees.

At Vargas & Vargas Insurance, we can help you further understand the process and what you need after an accident. Contact us today to understand your options and what you can do to avoid issues like this in the future.

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Potential Gaps In Your Home Insurance Coverage

Making a house feel like a home is made up of many things, from our belongings, pets, and family. Therefore, having the right insurance coverage to protect you from any unforeseen events is essential. As each home is unique, your insurance should be tailored to your needs and requirements. Otherwise, you may find that your claim for damages isn’t covered and have to pay for it yourself.

Vargas & Vargas Insurance can help you in making sure your home is fully insured. Don’t put off checking if your coverage is sufficient until it’s too late! Homeowners are sometimes shocked to discover some areas of their insurance policies are not covered. Although dealing with insurance can be tricky, we can help make it easier by providing some helpful advice about what may be overlooked or insufficiently covered in your policy.

A Comprehensive Coverage Level

When it comes to ensuring your home is secure, the insurance policies you choose should be comprehensive and detailed. Many insurance holders purchase coverage at various levels, with one being more extensive than the other. Generally, we suggest getting the highest tier available as it usually provides sufficient protection for what we need. Some agents start with a lower tier and gradually increase their coverage; however, this is not recommended when it comes to home insurance as there can be areas left unprotected or overlooked.

When protecting the things we value most, it’s not advisable to skimp on specific areas as you will discover that you get what you pay for. You need to ensure, first and foremost, that you have the right protection at an affordable cost, even if it is not the lowest price available.

Sufficient Insurance Coverage Levels

Your home insurance policy consists of six different coverages, each with its own coverage limit – the maximum sum your insurer will pay out should you file a claim. Some insurers may provide lower limits to reduce the cost of the quote they offer, however this could be inadequate for certain types of claims. In what follows, we will outline each coverage and suggest suitable limits for each.


Dwelling coverage safeguards the physical structure of your dwelling from destruction caused by a range of causes. With regards to dwelling, you are not permitted to decide on the coverage amounts. Instead, it is determined automatically depending on the cost of replacing your home.

Other structures

Home insurance policies also cover damage to structures not attached to the main house, such as fences, garages, pools, driveways and sheds.

Generally, the amount of coverage is set at 10 or 20 percent of the amount for the dwelling coverage; however if you have expensive other structures that are worth more than these limits allow for, you can purchase additional coverage.

Personal property

This coverage applies to any possessions you have in your house and garden. If they are destroyed or taken, the insurance will pay to repair them or get new ones.

The amount of coverage is usually equivalent to 50-70% of the dwelling protection provided by the insurance company, and this limit is pre-set.

Loss of use

If you need to leave your home due to a disaster or emergency, loss of use coverage will pay for temporary housing. Generally, the maximum amount covered is 20-40% of the dwelling coverage.

Medical payments to others

This policy provides financial protection for medical costs incurred by someone hurt while on your premises. This includes damage from falls, cuts, dog bites and other injuries.

Generally speaking, the minimum coverage limit for this part of the policy is $5,000.

Personal liability

When a person is hurt on your property and you are sued for it, this section of the policy can help pay for medical bills, legal costs or settlements.

It is essential to choose a coverage limit that is high enough – usually between $100,000 and $1 million – as lawsuits today can be expensive. In some cases, they may even exceed that amount, which is why we advise people to get umbrella insurance too.

Additional insurance options

This optional coverage can be a useful addition to your policy; it is not included in the main categories listed above. Personal injury coverage safeguards you from potential libel, slander, or defamation lawsuits.

Sewer and Water Backup Endorsement

This coverage, which is an additional expense, covers any overflow due to backup in the plumbing system, such as pipe backups, drain blockages, sewer line clogs or sump pump overflows. This is distinct from the standard overflow protection, which guards against backups in toilets, sinks and drains.

Service line coverage

This coverage, available for an additional fee, covers any repairs that need to be made to pipes or wires coming into your premises. These may include electrical lines, water pipes, or septic lines. The typical limit for this type of coverage is usually between $10,000 for services and $50,000 – 100,000 for equipment repair.

Equipment breakdown coverage

This coverage compensates for any damage to your home appliances (air conditioning, furnaces, etc.) caused by power surges, electrical shorts, mechanical failures, motor burnout or operator mistakes.

Scheduled Items

Scheduling items is a great way to guarantee your valuables are protected. By paying a few extra dollars, jewelry, art and other precious objects will be insured if they are damaged or stolen.

One of the benefits of this policy is that if you make a claim there is no deductible and mysterious disappearance (losing an engagement ring down the drain) would be covered too. T

o avoid having to pay out-of-pocket for losses, we recommend speaking with your insurance agent to ensure these important coverages are included in your policy.

New Additions and Alterations Yo Your Home

Making improvements to your home can be enjoyable, but it is important to evaluate your insurance policies to guarantee that any new changes are adequately insured.

Adding value to your property through renovations or new additions requires special attention when reviewing your home insurance policy. Not only does a stunning kitchen renovation affect the look of the house, but also any expansion of the square footage should be noted as well. If you are increasing the size of your house, then you need to modify the limits for dwelling coverage. Likewise, if you are making significant changes in outdoor areas such as a swimming pool or patio area, then other structures limits need to be adjusted accordingly.

Examining any considerable alterations to your home can be a beneficial technique to review and adjust your existing insurance policies, or search for another provider if you don’t feel satisfied with the amount of service from your present insurance company.

Working Remotely Or Running A Business From Your Home

It is easy to think that working from home would be included in a typical home insurance policy, given the increase of people who do this. However, this is not necessarily true. If you are just doing paperwork at home in your pajamas, there is no need for extra coverage. However, if you are starting a business from your house such as selling jewelry or running a photography studio, it may be necessary to take another look at your policy since some risks associated with those kinds of businesses may not be covered by the standard plan.

When talking to your insurance agent about any business activities conducted in your home, they will confirm if it is a “permitted incidental occupancy”. This would qualify you for restricted liability and property coverages. In the event that your business venture isn’t covered by this exception, you will need to get a complete commercial insurance policy to ensure proper protection.

Starting a home business can be an economical way of entering many industries from the comfort of your own home, but it is essential to take all the necessary precautions to ensure that the business succeeds.

Local Independent Insurance Broker

It can be difficult to know how to best insure our homes, but these tips should help point you in the right direction for obtaining the most suitable coverage. If you still have queries regarding your policy or would like further information, Vargas & Vargas Insurance will be happy to answer your questions; contact us at 617-298-0655.

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Buried Service Line Insurance Coverage: What Is It?

Service line breaks can be costly and unexpected, as they are not usually visible to homeowners. These lines provide water, gas, electricity, and other essential services to homes. At Vargas & Vargas Insurance we’ve seen how damaging a service line break can be when homeowners must pay for repairs out of pocket due to a lack of coverage on their homeowner’s insurance policy. Homeowners should only have to worry about having to dig up their garden for access if there is a punctured pipe – not the full cost of repairs too.

In this article, we’ll explore the optional endorsement you can add to your policy that provides protection for your home from any service line damages, as well as what is and isn’t covered in the policy.

Does Home Insurance Cover Service Lines?

Service lines are an important aspect of a home, but they are not usually included in a typical homeowners insurance plan. However, it is possible to include coverage for service lines by purchasing an extra endorsement from most insurers. This type of coverage provides protection from any unexpected expenses caused by damaged service lines on the property, such as tree roots blocking water pipes or cracked sewer lines. It would cover the costs for fixing or replacing these utility lines, including the expensive digging required to access them and any landscaping that may be disturbed during repairs.

Once your deductible has been paid, your insurance provider will cover the costs of repairs or replacements. Service line breaks can cost anywhere from $5,000 to $10,000, so it is beneficial to add this endorsement to your policy in order to avoid incurring these large expenses out of pocket.

Damages That Are Covered

Service line coverage endorsement typically covers damages such as:

  • Wear and tear
  • Rust, decay, deterioration, and corrosion.
  • Additionally, it may cover damage from tree or root obstruction or
  • Vermin, insects, or rodents.
  • Landscaping or excavation accidents,
  • Freezing,
  • Collapse, and
  • Mechanical or
  • Electrical breakdown may also be covered.
  • Weight from cars can cause the collapse of an above-ground structure.

The Types Of Services Provided Include:

Examples of the various services that are part of a house can be seen here.

  • Telephone cable lines
  • Water Pipes
  • Drains,
  • Natural gas
  • Sewage
  • Fuel
  • Sprinkler systems
  • Liquid flow lines
  • Steam
  • Fiber optics
  • Buried electric wires

Types Of Service Lines Not Covered

These service lines are not included in the service line coverage.

  • Fuel containers
  • Cabling or pipes that traverse a body of liquid
  • Sewage systems
  • Wiring or tubing that isn’t linked up and ready to go

What Does Service Line Coverage Cost

The cost of this coverage is actually very affordable and provides important protection. This coverage would usually cost between $50 and $100 per year for the $10,000 to $20,000 of additional coverage it offers on top of your homeowner’s insurance policy.

Overall cost and premium would vary depending on the insurance carrier. Because this coverage is so affordable and offers important protections, Vargas & Vargas Insurance tends to recommend this coverage for all of our client’s policies.

Protecting your home from service line breaks 

Staying on top of the upkeep and inspections of your home can be tricky, so it’s a good idea to ensure you’re protected from any possible damage by having comprehensive coverage in your homeowner’s insurance policy. As a homeowner, it is essential to understand what is included in your insurance policy and the areas where you may not be covered.

Your Local Independent Insurance Broker

Vargas & Vargas Insurance is dedicated to providing customers with the best service possible. We are independent brokers and work with many financially strong insurance companies to customize an insurance plan that meets the individual needs of our clients. For four decades, we have been helping homeowners understand the significance of having the proper homeowners insurance.

Contact us today 617-298-0655

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Need A Home Insurance Binder For Your

When buying a new house, getting help from a trustworthy insurance agent and an experienced mortgage broker is essential. Even if you have bought thirty homes before, you may not realize that homeowner’s insurance can complicate the mortgage approval process in Boston, MA.

Mortgage Company Requirement

When obtaining a loan from a bank or other lender, you will be expected to provide proof of an insurance policy sufficient to either rebuild the home or cover the mortgage amount. Your chosen mortgage broker or loan officer has to meet the lender’s standards, but it is also important for your home insurance policy to cover what it would cost to reconstruct your house in case of a claimable event and not just the value of the mortgage.

Replacement Cost Versus Mortgage Amount

It is likely that the amount to reconstruct your home will be different from the mortgage amount you take out. You certainly don’t want to miss the difference in case of a disaster such as a fire. For example, if you borrowed $250,000 after making a down payment of $50,000, that means the house is worth $300,000. But reconstructing it (including labor and materials) could cost up to $375,000. It is important to remember that there is a variation between buying and rebuilding your house.

An appropriate homeowners insurance policy would cover up to $375,000, not the amount of your mortgage.

The Mortgage Company Binder Requirement

Your mortgage broker needs to see an insurance binder with the bank’s name and the proper language. Failing to provide this correctly could lead to a postponement of the closing date. To ensure that you are prepared, a reliable Boston MA, mortgage broker will supply the exact language the bank requires and thoroughly analyze the binder prior to the closing. This way, they can make sure that the binder contains all of the necessary information and meets all of the guidelines set out by the bank. They can also help ensure that the binder is properly formatted and all of the necessary details and terms are included. This can help avoid any potential issues or delays on the closing day. By taking these steps, you can be sure that you are well-prepared for the closing and that everything will proceed smoothly

When is a great time to shop around for your insurance binder

We recommend calling local independent insurance brokers around the time that your offer is accepted and you have scheduled the home inspection process. This will give your insurance broker enough time to shop around for the best coverage at the best price for you and your new home.

Insurance Discounts

At Vargas & Vargas Insurance, we recommend that homeowners bundle their house and car insurance to get all the possible discounts. We work closely with the top mortgage brokers to ensure they have the necessary paperwork done on time; having an insurance binder is a key part of getting a home loan approved. We are experienced in dealing with all mortgage brokers in Massachusetts.

Local Independent Insurance Agency

Vargas & Vargas Insurance is a local independent insurance broker, we work for you, the customer, and not any one insurance company, and we always have time for you. We shop around with many local and national insurance companies to offer you a tailored fit insurance policy for your specific needs. We have been helping first-time home buyers for over 40  years and teaching them about the significance of their homeowner’s insurance, call us today.

Call us 617-298-0655

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