Knob and tube wiring is a topic that often raises concerns for homeowners, insurance companies, and mortgage lenders alike.

We Often Hear This Question

Can you get insurance for a home that still has knob and tube wiring?

The answer is yes. There are a limited number of insurance companies that will provide coverage for homes with knob and tube wiring. However, it’s best for you to prioritize your peace of mind by considering an electrical system upgrade.

Here are some important details about knob and tube wiring and why it’s essential to contemplate upgrading your electrical system

This type of electrical system was commonly utilized in homes constructed before 1950, with its peak usage occurring from 1880 through the 1930s. While knob and tube wiring served as an economical electrical solution during its time, it comes with several inherent issues that make it a potential fire hazard in today’s modern homes.

Understanding Knob and Tube Wiring

Knob and tube wiring consists of copper conductors covered with cotton or rubber insulation. These conductors are passed through ceramic or porcelain tubes and wrapped around ceramic knobs. While this method may have been acceptable decades ago, it lacks a crucial component found in modern electrical systems: a ground wire. This absence of a grounding system is one of the primary reasons why knob and tube wiring is considered unsafe and undesirable for today’s homes.

Key Facts to Know About Knob and Tube Wiring:

1. Lack of Grounding: Knob and tube wiring consists of separate hot and neutral wires without a grounding system, unlike modern electrical systems that include hot, neutral, and ground wires. This absence of a ground wire increases the risk of electrical shocks and fires.
2. Vulnerability to Damage: Over time, the rubber insulation used in knob and tube wiring can deteriorate, particularly when exposed to excessive heat. Areas like attics, where temperatures can vary significantly, are especially prone to having exposed wiring that poses serious hazards.
3. Lower Temperature Rating: Knob and tube wiring is rated for 60°C, while modern light fixtures and appliances are designed with wires rated for 90°C. When older wiring connects directly to modern fixtures without a junction box, the wires can overheat, potentially leading to electrical fires.
4. Ventilation Requirements: This older wiring system was designed to be installed in free air to dissipate heat effectively. As a result, adding spray foam insulation to walls or attics without a proper evaluation is not advisable. Improper insulation can trap heat and increase the risk of fire.
5. Safety Concerns: Modern electronics often come with built-in safety features that rely on a proper grounding system and stable electrical connections. When used with knob and tube wiring, these safety mechanisms may be compromised, putting both the devices and homeowners at risk.

Insurance Implications:

One of the most significant concerns associated with knob and tube wiring is its impact on homeowners’ insurance. Most insurance companies are reluctant to provide coverage for homes with this type of electrical system due to the increased risk of fires and electrical hazards.

Most insurance companies require homeowners to convert their electrical systems to modern standards within 30 days of purchasing a policy. Failure to make this conversion can result in the cancellation of your homeowners’ insurance coverage, and in some cases, even force your mortgage company to have to purchase forced coverage to cover the loan.

While some insurance companies may consider providing coverage if the home undergoes an electrical inspection to assess the condition and functionality of the wiring, this is by no means guaranteed. Homeowners should be aware that intentionally failing to disclose the presence of knob and tube wiring in their homes could invalidate their homeowners’ insurance policy in the event of a claim.

Finding insurance companies willing to cover homes with knob and tube wiring can be a challenging task. Given the inherent risks associated with this type of electrical system, many insurers are simply unwilling to offer insurance policies. If coverage is available, homeowners will have to pay a higher annual premium.

A Better Solution: Upgrading Your Electrical System

Ultimately, the best course of action if your home has knob and tube wiring is to upgrade the electrical system to modern standards. Not only does this create a safer living environment for you and your family, but it also allows you to obtain standard homeowners’ insurance coverage at standard or preferred premium rates.

Pro-Tip:

From Angi.com You should never, under any circumstances, handle knob-and-tube wiring on your own. Replacing knob-and-tube wiring is one project that can quickly lead to serious injury and fire if not handled correctly. Instead, hire a licensed electrician who can inspect the wiring and how it will hold up over the coming years.

If you find yourself in this situation, it is highly recommended that you consult with a local independent insurance broker, such as Vargas & Vargas Insurance Agency. We can provide guidance and help you find the right insurance coverage for your specific needs. Our experienced insurance professionals can be reached at 617-298-0655 and offer insights into what options are available and ensure that you have the proper coverage to protect your home and assets.

Most of us have items we really care about, either because they’re sentimental or valuable. You might keep your valuable jewelry safe in a box and take steps to protect your favorite things. Some even use security cameras to watch their property.

While these precautions are important and reduce the risk of loss, there’s one crucial aspect you might be overlooking: adequate insurance coverage. Without proper insurance, your most valuable belongings remain vulnerable to potential loss. While homeowner’s insurance will offer some protection, it might not be sufficient, and you may need additional coverage. Here are some insurance tips to safeguard your jewelry and other high-value items at home!

Understand Your Homeowner’s Insurance Policy

Your home insurance provides essential protection in the event of disasters like fires. Moreover, it typically includes coverage for theft, or damage of valuables. However, certain categories of items, such as high-value jewelry and collectibles, have predefined limits in your policy. These limits can leave you unable to recover the item’s actual value fully.

For example, your policy might cover jewelry up to $1,500, if your $4,000 jewelry piece is stolen, leaving you at a $2,500 loss. Coverage limits can vary, with some applying per incident and others, especially for jewelry, per item. It’s crucial to review your policy carefully, focusing on coverage amounts and restrictions. If you have questions, don’t hesitate to reach out to your insurance broker for clarification and to explore additional coverage options from your trusted Massachusetts insurance broker.

Add Scheduled Personal Property Coverage To Your Home Insurance Policy

In reality, many of us underestimate the value of our possessions, but the thought of losing them is still distressing. While sentimental value is significant, it can be challenging to gauge the need for additional insurance. The initial step is to create an inventory of all your valuable belongings. Then, consider adding scheduled personal property coverage to your home, condominium ot renters insurance policy. All insurance Companies require an appraisal or recent purchase receipt to determine an item’s value. It’s wise to conduct an annual assessment of your valuables, updating their values for your records and adjusting your policy coverage accordingly.

Scheduled personal property coverage often includes items such as:

• Jewelry
• Furs
• Stamp and Coin Collections
• Firearms
• Art
• Musical instruments
• Antiques and collectibles
• Other high-value assets”

Understanding The Benefits of Additional Insurance

Budget-conscious homeowners often need help to add a scheduled personal property rider to their insurance policy due to concerns about increased premiums. However, it’s essential to realize that these additional premiums come with some unexpected benefits that can outweigh the little extra cost.

Firstly, adding a rider typically means you won’t have to pay a deductible if you need to make a claim for items listed on the rider. This contrasts with items covered strictly by your standard policy, which may require you to pay a deductible.

Moreover, scheduled property coverage often extends to additional risks, such as accidental loss. This means that if you misplace your precious diamond engagement ring or leave your expensive Rolex watch behind in a hotel room, you’ll still be covered.

In essence, while it may seem like an added expense, scheduled personal property coverage can offer valuable protection and peace of mind for your prized possessions.

Pro-Tip

The appraisal for your high-end items for insurance purposes should be based on what you paid for the item, not their future value. Insurance companies usually replace lost items with identical ones through wholesalers, so valuing them for the purchase price will ensure that you do not overpay for the scheduling of your valuables.

Properly Protect Your Valuables

While keeping your valuables in a secure location is a wise practice, it may not always be the best way to protect them. Adding to your security with the right insurance coverage is crucial to ensure comprehensive protection. Don’t hesitate to discuss these added benefits with your local insurance broker before making a decision.

If you’re uncertain about the type of homeowner’s insurance coverage you require or want to explore the advantages of scheduled personal property coverage, please reach out to us. As a top-rated local insurance broker, we understand the value your home and belongings hold for you.

Our team can be reached at 617-298-0655 and is available to help you assess your current policy and determine the best coverage for your unique circumstances. Your peace of mind is our priority!

Myth #7: All of My Belongings Are Automatically Covered by My Home Insurance

Avoid assuming that your home insurance automatically protects all your personal belongings both inside and outside your home. Valuable items like electronics, jewelry, artwork, etc., may require separate listing and appraisal to ensure coverage. Create a personal inventory with photos and values to facilitate the claims process. Consult your insurance agent to determine if additional coverage or endorsements are necessary.

Myth #8: If Someone Else Drives My Car, Their Insurance Would Pay for the Damage

In most states, the owner’s car insurance covers damage after an accident. The owner’s insurance is the primary policy, no matter who was driving. Laws and policies differ by state, so speak with your insurance agent before letting someone else drive your car.

Myth #9: I Don’t Need Life Insurance because I’m Young and Healthy

Young people may think they don’t need life insurance, but it’s actually a good time to get it. They usually don’t have much savings, so life insurance can be important in case of an emergency. If you were to die unexpectedly, your spouse could be left with a lot of expenses, including a mortgage. Buying life insurance while young and healthy can also mean lower premiums than when older or sicker.

Myth #10: I Don’t Need Flood Insurance if I Don’t Live Near the Water

While flood insurance may not be a mandatory requirement in your area, it can still offer valuable protection for your home against a range of disasters that your standard home insurance policy might not cover. Home insurance excludes coverage for flooding resulting from events like heavy rainfall, tsunamis, hurricanes, and more. Since flooding incidents can occur anywhere, even in areas without immediate proximity to large bodies of water, it’s advisable to consult your independent insurance agent about the option of adding flood insurance to safeguard your home from these potential risks.

Myth #11: I’m a Homemaker, so Life Insurance Won’t Benefit My Family

Life insurance serves as a means to maintain your family’s accustomed quality of life once you’re no longer present. While it can serve as income replacement for working family members, the payout can also cover various end-of-life expenses, such as funeral costs, or provide financial support for dependents or a surviving spouse. Additionally, many individuals utilize life insurance to establish a college fund for their children.

Myth #12: Certain Car Colors Cost More to Insure

This is a persistent myth without any substantial basis. While the car’s color may impact mood, it doesn’t hold the same influence over your car insurance rates. The actual determinants of auto insurance premiums are factors such as your driving history, credit score, the make and value of your vehicle, your geographical location, and more

Working With A Local Independent Insurance Broker

Because we make insurance shopping easier by doing the comparison work for you, plus, we simplify the complex language and details so you understand your coverage fully. Independent brokers also have access to many insurance companies, ensuring you get the best coverage, options, and prices while working in your best interest. Our team can be reached at 617-298-0655

Many people are unsure about their insurance coverage because of many insurance myths.

Knowing what is true can help you make informed decisions about protecting your home, car, or business. Independent insurance brokers can help clear up myths and find the right coverage for you. Here are 10 common insurance myths that we hope to dispel.

Myth #1: I have very few possessions, so I don’t need renters insurance.

First, check the value of your belongings by walking around your home and writing them down. Consider how much it would cost to replace everything if there was a disaster like a fire. You might be surprised by the total amount.

Additionally, your landlord probably requires you to have renters insurance. Even if your belongings aren’t valuable, having renters insurance can help you recover from a disaster more quickly. It can reimburse you for lost items and protect you from liability.

An independent insurance broker can explain the benefits of renters insurance, no matter how much property you have.

Myth #2: My Home Insurance Will Cover My Home-Based Business Fully

Home insurance usually only covers up to $2,500 for your business equipment at home and $250 if it’s taken off-premises. Liability related to your business is often not covered.
You can add endorsements to your home insurance or purchase a separate policy to cover your home-based business. An independent insurance agent can help you find the best coverage for your business.

Myth #3: My Business Is Too Small to Need Insurance

To decide if you need business insurance, consider how much risk your business faces. If you have expensive equipment, store electronic data, or are at risk from environmental threats or lawsuits, you should get insurance. Even small businesses can be sued for injury or property damage, so it’s important to have liability coverage to protect you as the owner.

Myth #4: Only Rich People Need Umbrella Insurance

Many people think that only wealthy individuals face lawsuits or have insurance coverage that can handle such cases. However, this is not true, as there have been documented lawsuits with settlements as high as $525,000 for a single slip-and-fall injury on an icy sidewalk at a condo complex.

Umbrella insurance can increase your existing liability coverage to $1 million or more and can be added to your home insurance or other policies. If you have a pool, trampoline, or an aggressive dog on your property, consider adding umbrella insurance to protect yourself from costly lawsuits. An independent insurance agent can help you determine if this is the right option.

Myth #5: The Life Insurance Provided through Work Is Enough

Employers give life insurance to full-time workers through group policies. If you leave your job or the company ends, you lose your life insurance. Group policies can leave you with too little insurance. Half of Americans with life insurance don’t have enough for final expenses. Experts suggest getting ten times your yearly income in coverage. Get an extra personal policy if your work policy doesn’t cover enough.

Myth #6: Working With An Independent Insurance Broker Is Costly

When you choose to work with an independent insurance broker, it’s essential to understand that our services come at no additional cost to you. You won’t have to worry about paying extra fees or hidden charges for their expertise. Independent insurance brokers are compensated by the insurance companies they work with, so their guidance and assistance are provided to you without any direct financial burden.

Moreover, working with an independent insurance broker offers several significant advantages. We act as your insurance advocate, simplifying the often complex insurance shopping process. Here’s how we do it:

1. Quote Comparisons: Independent insurance brokers have access to a vast network of insurance providers. We can obtain quotes from multiple companies, saving you the time and effort of reaching out to each insurer individually. This allows you to compare different policy options and premiums side by side, helping you make an informed decision.
2. Clear Explanations: Insurance policies can sometimes be filled with jargon and complex terms. Independent insurance brokers are experts in this field and can break down the intricacies of insurance for you. We’ll provide clear, easy-to-understand explanations of the policy details, coverage options, and any exclusions or limitations. This transparency ensures you know precisely what you’re getting and what’s covered under your chosen policy.
3. Tailored Recommendations: Independent insurance brokers take the time to understand your unique insurance needs. We consider your specific circumstances, whether it’s for home, auto, business, or other types of coverage. With this personalized approach, we can recommend insurance options that align with your requirements and budget.
4. Advocacy: Should you need to make a claim or encounter any issues with your insurance, we are there to assist you. We act as your advocate, helping you navigate the claims process and ensuring that you receive the support you deserve.
5. Annual Evaluation: When your policy is renewing, we will examine it to ensure you still have the best coverage at the most competitive rate. If we find opportunities for improvement, one of our dedicated customer service agents will contact you with expert recommendations.
6. Annual Reviews: Working with a local insurance broker offers a significant advantage. When it’s insurance policy renewal time, we’ll thoroughly assess your coverage and rates. If we find a better option from our trusted insurance partners, we’ll provide you with that information. You can then make an informed choice about whether to continue with your current insurer or make a switch.

In summary, working with an independent insurance broker is a cost-effective and efficient way to secure the right insurance coverage. They offer a wealth of knowledge, access to a wide range of insurers, and a commitment to providing you with the best possible coverage at the best price. Plus, their expertise makes understanding and managing insurance simpler and more straightforward, giving you peace of mind in knowing you’re adequately protected.

You can reach our team by calling 617-298-0655, and one of our customer service representatives will answer your questions and help guide you through today’s intricate insurance world.

Let’s Dive into the World of Insurance Premiums, Deductibles, and Policy Limits: Everything You Need to Know!

What Exactly is an Insurance Premium?

Your insurance premium, often referred to as your ‘rate,’ is the regular payment you make for your insurance policy. The frequency of these payments can be monthly, quarterly, semi-annually, or annually, depending on your chosen billing option.

When you browse for insurance online and review quotes, you’re essentially exploring the various payment amounts associated with your premium.

Several factors influence your insurance premium, including:

1. Policy Limits: The coverage limits you select for your policy play a significant role in determining your premium.
2. Deductibles: The deductible you choose also affects your premium. Higher deductibles typically result in lower premiums, while lower deductibles lead to higher premiums.
3. Insurance Claim History: Your past insurance claim history can influence your premium. Fewer previous claims may lead to lower premiums.

Additionally, depending on the type of policy and your state of residence, there may be other components that contribute to your insurance premium.

What Caused the Adjustment in My Insurance Premium?

Several factors can have an influence on your insurance premium, leading to changes over time. One such factor is inflation, which can significantly impact the cost of repairing or replacing your home or vehicle. As the overall cost of goods and services increases due to inflation, the expenses associated with property repairs and replacements also rise. This, in turn, can result in adjustments to your insurance premium to ensure that your coverage adequately accounts for the increased costs associated with potential claims.

Some of the key factors that can lead to changes in your premium include:

1. Inflation: As mentioned earlier, inflation can drive up the costs associated with property repairs and replacements.
2. Insurance Claim History: Your past claims history can impact your premium. Frequent claims may lead to higher premiums.
3. Adding Coverages: Expanding your coverage to include additional protections can result in an increase in your premium.
4. Increasing Policy Limits: When you raise the limits of your policy, it can lead to a higher premium.
5. Adding Family Members: Including new drivers or family members on your policy can affect your premium.
6. Changes to Property or Vehicle: Alterations, renovations, or modifications to your home or vehicle can lead to premium adjustments.
7. Change in Usage: If you start using your property or vehicle differently, such as renting a room in your home or changing your vehicle’s primary use, it can influence your premium.
8. Driving Record: Your driving history, including accidents and traffic violations, can impact your auto insurance premium.

Insurance premium changes can be quite noticeable because many of us only review our premiums when we receive our bills for the next policy term. To illustrate this, consider the analogy of purchasing all the milk you need for a year. The following year, when you buy all your milk again, you’re likely to notice a significant difference in price due to inflation, as you’re making one large lump-sum purchase.

What Does the Term ‘Insurance Deductible’ Mean?

Your insurance deductible is the amount you contribute toward a covered claim. Let’s say your car sustains damage in an accident, with a total repair cost of $1,200. If your policy has a $500 deductible, you’re responsible for paying $500 towards the repair, while your insurance covers the remaining $700.

This deductible amount is predetermined when you purchase your policy. Even if the repair cost were $2,000, your obligation would still be the fixed $500 deductible, provided it falls within your policy limits (more on that later).

Here’s the key connection:

Opting for a lower deductible typically results in a higher premium, as you’re paying less out of pocket for covered claims. Conversely, choosing a higher deductible often leads to a lower premium because you’re shouldering more of the cost for such claims.

What Is the Amount of My Insurance Deductible?

Your deductible is not a fixed, one-size-fits-all amount. Instead, it depends on the terms of your insurance policy and your choices. To discover your current deductible, refer to your policy documents, typically located on the Declarations page near the front.

Be aware that some policies may have separate deductibles for specific types of losses, like a special wind/hail deductible. If you’re an Auto-Owners policyholder, you can locate your deductible amount in the policy Declarations section.

If you’re still unsure about your deductible amount, your best course of action is to contact your insurance broker.

What Do Insurance Policy Limits Mean?

Your insurance policy’s limit is the maximum amount your insurance provider will pay for a covered loss. If the costs associated with your claim exceed this limit, you may have to cover the remaining expenses out of your pocket. This is why having an independent insurance agent by your side is crucial. They can assist you in determining and setting appropriate coverage limits to ensure you’re not left underinsured.

Being underinsured means having insurance coverage, but the policy limits are insufficient to cover the full extent of your claim. For most personal insurance policies, you’ll need to choose separate limits for your property (such as your car or home) and your liability.

Many insurance policies also offer additional coverages that you can add to help protect you in case your expenses exceed your policy’s limits.

Your Local Independent Insurance Broker

As an independent insurance broker, we work for you, and, we work with top insurance companies across the nation. Our mission is to simplify your insurance shopping experience by securing multiple quotes on your behalf. We specialize in comparing rates, insurance providers, and a wide range of coverage options, making the process straightforward. Should you have any inquiries, our local team is just a phone call away at 617-298-0655, ready to assist you. And here’s the great news: our services come at no cost to you! Plus, you have the convenience of purchasing your preferred insurance policy directly through us.

You can’t drive a car without car insurance, and it’s important for financial protection in case of an accident. It helps cover medical bills and legal costs. However, it can be expensive, especially for first-time buyers. To save money, follow these tips to lower your premiums.

Maintain A Clean Driving record

It can be tough to maintain a spotless driving record, but insurance providers are aware of this. As a result, many of them provide premium discounts as an incentive for doing so. Some companies may even offer specific discounts if you can keep a clean record for an extended period of time. The specifics of this policy vary depending on the insurance company in question.

Maintain Good Customer Status

Just like in any other service, being a responsible customer when it comes to paying your auto insurance premium can have its advantages. Insurance companies prefer to keep clients who pay their bills on time as they contribute to the company’s cash flow. If you consistently pay your premiums on time, you may be eligible for discounts. Additionally, paying your insurance premiums on time can also have a positive impact on your credit score.

Invest in Your Vehicle’s Security

By adding extra safety features to your vehicle, you can reduce the risk of theft and accidents, which can lead to lower insurance premiums. Popular safety devices include anti-theft systems, anti-lock brakes, and airbags. Your insurance provider may provide a list of eligible devices and corresponding discounts.

Get a Multi-Policy Discount

Insurance companies provide a vast range of coverage that caters to consumers’ needs, such as life, property, and medical insurance. By obtaining insurance from a single company, you can avoid lengthy procedures and obtain all the coverage you require. Furthermore, insurance providers often offer discounts to clients who purchase multiple types of coverage. These discounts can be beneficial if you’re looking to save money, but the amount varies depending on the insurance company’s policies.

Look for Special Discounts

Discounts are available for certain groups of people, such as younger or older drivers, as well as members of affiliated organizations. Insurance companies will discuss the potential savings that can be obtained by being part of these groups. To find out how to save money on your premiums, check the provider’s website for more information.

Consider Working With An Independent Insurance Broker

As an independent broker, we aren’t tied down to just one insurance company. We have connections with several carriers and can do the legwork for you. Instead of wasting time calling around to different companies, we can provide you with the best rates from multiple carriers with just one phone call.

While there are various ways to save on auto insurance, it’s important to prioritize coverage over price. Many people make the mistake of solely focusing on the cost, rather than ensuring they have the appropriate coverage. The end goal is to find the insurance that fits your needs while also being cost-effective.

With proper research, saving money and obtaining adequate auto insurance coverage is still feasible. Follow these suggestions to locate premiums that match your financial plan.

Contact Vargas & Vargas Insurance at 617-298-0655 for any questions you may have or need to get the best coverage at the best price.

Homeowners insurance keeps you and your house safe from covered losses. The coverage depends on the policy you choose. We will explain what you need to know, how to select your coverage, and how to compare quotes from various companies.

To get a home insurance quote, you need to know your home’s replacement cost.

You don’t need to know the exact cost, just some information.

Comparing quotes from different companies is the best way to choose the right coverage.

Vargas & Vargas Insurance makes this easy by comparing quotes from many local and regional financialy sound insurance companies.

Home insurance rates vary based on individual factors and can cost from $500 to over $2,000 per year.

How To Get A Homeowners Insurance Quote?

Start by checking with your car insurance provider, but don’t stop there. Bundling policies can save you money. But remember, this company may not always be the best or cheapest choice.

Choose Who And How You Want To Buy A Homeowners Insurance Policy From

You can get a home insurance quote in three ways.

Independent insurance broker, with multiple insurance companies we offer comparison quotes and are always flexible and we work for you and not any one insurance company.

Captive insurance agent, (also known as a direct agent), who you can contact online, over the phone, or in person. This option offers personal help but may be more expensive and won’t give comparison quotes.

Online comparison marketplaces l allow you to compare multiple quotes at once.

No matter your chosen method, you will need certain information to receive a homeowners insurance quote.

To Obtain A Quote For Home Insurance, Certain Information Is Required

• Full property address
• Is the home your primary, seasonal or secondary residence?
• Year built
• Square footage
• Number of stories and bathrooms 
• Presence of detached structures like a shed or garage
• Roof and exterior wall materials
• Presence of wood stoves or fireplaces
• Pet information
• History of home insurance claims
• Notable renovations or updates
• Presence of safety information like smoke detection, burglar alarms or security cameras
• Number of full-time residents in the home
• Updates to the electrical, roof, heating systems

It’s okay if you don’t possess all the necessary information about your house, as your insurance broker can retrieve most of it from various sources.

Choose Your Coverage Type And Riders

When determining the cost of your homeowners insurance, all insurance companies use the replacement value of your home. This value is based on the cost of rebuilding your home in the event of a complete loss, and is not affected by the real estate market or demand.

While you don’t need to know the exact value of your insurance needs, insurance companies can use your address to provide basic policy options, and may even verify the replacement cost coverage through a home inspection.

The main decision you’ll have to make is how you want your home and belongings to be covered, with options ranging from basic coverage that takes depreciation into account, to more comprehensive coverage that includes a replacement cost guarantee for both the building and its contents.

What Is Covered By A Named Peril Policy

Your homeowner’s insurance policy will explicitly name all the hazards and threats that it covers. However, this type of policy is less comprehensive as only events listed on the policy will be covered. Any damage caused by events not listed may not be covered. The following events are typically covered in a named peril policy:

• Fire
• Lightning
• Theft
• Vandalism
• Windstorms and hail
• Damage caused by vehicles
• Damage from aircraft
• Weight of ice, snow and sleet
• Freezing of household systems
• Riots
• Explosions
• Falling objects
• Volcanic eruptions
• Water damage: overflow or discharge
• Damage from artificially-generated electrical current
• Sudden tearing, cracking or bulging of home

What Is Not Covered By A Standard Home Insurance Policy

These are referred to as exclusions, and can be added to your home insurance policy as a rider for an additional cost.

• Enforcement of building codes and similar laws
• Earthquake
• Flooding
• Power failures
• Neglect (failure to take reasonable steps to protect your property)
• War
• Nuclear hazard
• Intentional acts

Do You Need To Increase These Coverage Limits

If you have valuable personal property in your home, you may need to consider getting more extensive coverage than the standard coverages mentioned above. To do so, you can add an endorsement to your insurance policy, which is a change to the policy that can either add or remove coverage. If you have items of high value that exceed the coverage limit, it’s advisable to add an endorsement to your policy.

• $200 limit on money, gold, coins
• $1,500 limit on jewelry, watches, furs
• $1,500 limit on watercraft, trailers
• $2,500 limit on firearms
• $2,500 limit on silverware
• $2,500 limit for on-premises business property
• Variable limit on electronics

Your personal liability and dwelling coverage work the same way. We suggest getting liability limits that match or exceed your household’s net worth to protect your assets in a lawsuit. Setting a high limit will prevent you from using up your insurance coverage and losing assets.

Your dwelling coverage should be at least 100% of your home’s replacement cost. Some companies may offer up to 150% coverage. As long as it’s 100% or more, you’ll have enough coverage.

Do You Need Replacement Cost Coverage On Your Contents

Your home insurance policy covers your belongings based on their current cash value. If you get a replacement cost rider, it will cover the cost of replacing your belongings instead.

Actual cash value (ACV) is how much it would cost to replace something based on its current value. Replacement cost is how much it would cost to replace something based on its current market value. Let’s use a 5-year-old TV as an example.

If you have a homeowners policy with ACV, you would get the current value of your 5-year-old TV, which may not be enough to buy a new TV. This is because TVs can depreciate up to 40% every year.

If you have a replacement cost policy, your insurance company would cover the cost of a new, similar 65 inch TV. We recommend getting replacement cost coverage because you may have to pay out of pocket with ACV.

Your Local Independent Insurance Broker

Get all of your insurance with Vargas & Vargas Insurance.

We’re an independent broker working with top companies across the US. We’ll do the shopping for you and give you multiple quotes. Compare rates, companies, and coverage options side-by-side. Ask questions directly from our local team. Buy your favorite insurance policy through us. It’s all free!

Insurance can sometimes be confusing and overwhelming, with complicated jargon and many options. Insurance companies can make it hard to get the right coverage without overpaying. There are also gmany types of insurance and who to purchase your insurance from. However, it is possible to make informed decisions about insurance by understanding which policies are necessary. Let’s review the types of insurance you can’t go without, and we’ll explain everything in simple terms.

The Main Points to Remember

Insurance transfers risk that you can’t handle yourself. It’s not for saving or investing. Make sure to have enough liability coverage with auto and homeowners insurance. Life insurance is necessary if someone relies on your income.

The Types of Insurance Coverage We All Need

1. Homeowners or renters insurance
2. Auto insurance
3. Health insurance
4. Umbrella policy
5. Life insurance
6. Long-term disability insurance
7. Long-term care insurance
8. Identity theft protection

Homeowners And Renters Insurance

Homeowners insurance protects your home and personal belongings. It’s important to have enough coverage to avoid a financial disaster if your home suffers a major loss.

A good homeowners insurance policy should include:

Dwelling replacement cost coverage

Personal property coverage

Personal property replacement cost coverage

Liability coverage

Additional living expenses coverage

You should also add an earthquake insurance rider and a separate policy for flood insurance.

Renters also need insurance since their landlord’s policy only protects the property itself, not personal belongings. Renters insurance is necessary to protect your belongings.

Your renter’s insurance needs to cover replacement cost, liability, and additional living expenses, just like a good homeowners insurance policy.

Auto Insurance

Auto insurance is important and often required by your state. There are different types of coverage to consider. The three main types are collision, comprehensive, and liability.

Collision covers damages to your car in an accident that’s your fault.

Comprehensive covers non-collision damages like theft, fire, and hail damage.

Liability covers damages and injuries to the other party in an accident you caused. You should have at least $500,000 in liability protection. In addition, add extra coverage for minimal extra costs if available in your state.

Consider adding these three protections to your auto insurance policy:

1. Personal injury protection (PIP): If you get hurt in a car accident, PIP coverage can pay for hospital bills, medical expenses, and lost wages. It fills in the gaps that your health insurance doesn’t cover. PIP is not available in all states, but if it is, it’s usually affordable to add to your policy.
2. Medical payments coverage: MedPay covers medical expenses, similar to PIP. PIP offers better coverage with higher limits. If PIP is not available, MedPay is a good alternative.
3. Uninsured or underinsured motorist coverage: These coverages protect your vehicle in case you are involved in a car accident with a driver without insurance or inadequate insurance to cover the damages. Usually, both types of insurance are combined, and some states require them.

Health Insurance

Health insurance can be confusing and costly, but you need it.

Health insurance is not needed for minor issues like hangnails or sniffles. However, it is crucial for major health issues such as heart attacks, appendicitis, or cancer treatments. Without health insurance, medical debt can cause bankruptcy for many individuals. It is important to ensure that your health insurance policy covers your family’s needs. There are ways to make health insurance more affordable, such as using an employer-sponsored plan, raising your deductible, and taking advantage of discounts offered by your insurance company.

Massachusetts has many health insurance plans available. You can choose different ways to buy a health plan and cost-sharing features. To find the right plan for you, you can click here.

Umbrella Insurance

An umbrella policy adds extra liability protection on top of your homeowners and auto insurance policies. It’s a good idea for anyone with a net worth of $500,000 or more. When you have wealth, people may target you. In today’s lawsuit-happy world, it’s important to be cautious. For example, imagine you bump into another car, causing minor scratches, but the other driver claims major injuries and sues you for more than your liability policy covers. This scenario happens more often than you may think.

Umbrella policies are a good investment because they are affordable, costing only $200-300 per year for $1 million in coverage. They are very useful and worth the investment.

Click here to read our blog on umbrella insurance.

Life Insurance

Life insurance is a crucial aspect of financial planning, especially if you have dependents relying on your income. It is designed to offer financial protection to your loved ones in the event of your untimely demise. The primary purpose of life insurance is to provide a lump sum payment to your beneficiaries, who can use the funds to cover expenses like funeral costs, mortgages, and other bills.

When it comes to choosing a life insurance policy, experts recommend taking out a term life insurance policy for 10-12 times your annual income. This type of policy is straightforward and easy to understand. It provides coverage for a set period, usually between 10-30 years, and pays out a lump sum if you pass away during that time.

One of the benefits of term life insurance is that it is affordable, making it an ideal choice for many families. You can choose the coverage amount and term length that fits your budget and needs. Plus, you can rest easy knowing that your loved ones will be taken care of financially if the worst should happen.

While term life insurance is an essential part of financial planning for many families, it is important to note that it is not a permanent solution. As you work hard to pay off debts, build wealth, and secure your family’s financial future, you may find that you no longer need life insurance coverage.

By the time your term life insurance policy expires, you may be self-insured thanks to your hard work and savings. This means that you have enough assets and investments to cover your family’s expenses if you were to pass away. At this point, you can reassess your financial situation and decide whether you need to renew your life insurance policy or not.

In conclusion, life insurance is an essential part of financial planning for anyone with dependents. It provides a safety net that ensures your loved ones will be taken care of financially if you pass away. Term life insurance is an affordable and straightforward option that offers coverage for a set period. As you work hard to secure your family’s financial future, you may find that you no longer need life insurance coverage, making it essential to reassess your financial situation periodically.

Long-term Disability Insurance

To be financially prepared for a short-term disability, it is important to have an emergency fund that can cover 3-6 months of your typical expenses. This can help cover any gaps in income during the time you are unable to work. However, for disabilities that last longer than a few weeks or months, it is recommended to invest in a long-term disability insurance policy.

Statistics show that 1 in 4 people will become disabled before their 67th birthday, making this type of insurance essential. The cost of a long-term disability policy can range from 1-3% of your annual income, depending on the level of physical risk associated with your job. Choosing a policy that covers 60-70% of your annual income is important.

Compensation will be provided for a period of five years following the official declaration of disability.

Long-term Care Insurance

As we age, our health needs change and we may require assistance with daily activities such as bathing, dressing, and eating. Long-term care insurance coverage helps alleviate the financial burden of these necessary services. It provides coverage for assisted living, in-home care, and nursing home care if we are unable to look after ourselves.

It is important to note that Medicare does not cover the costs of long-term care. This means that for those over 60, getting their own coverage is an absolute must. Without it, they risk having to pay exorbitant costs out of their retirement accounts or other personal savings. This could potentially wipe out a huge portion of their net worth and leave them vulnerable to financial ruin.

The statistics are alarming. 70% of Americans over 65 will wind up needing long-term care, and the average annual cost for a private room at a nursing home is nearly $110,000. These costs are not sustainable for most people, especially those who are retired and living on a fixed income.

Purchasing a long-term care insurance policy when you turn 60 may seem like an unnecessary expense, but it is worth the cost in the long run mathematically. It provides peace of mind knowing that you are prepared for any future health needs and that your retirement savings will not be depleted.

Furthermore, if you are married, it is even more crucial to have long-term care insurance. If you were to require long-term care and your spouse outlives you, they would be left with the financial burden of paying for your care. This could potentially put them in a difficult financial situation and leave them struggling to make ends meet.

In conclusion, long-term care insurance coverage is an important investment for anyone over 60. It provides financial security and peace of mind knowing that you are prepared for any future health needs. Don’t leave yourself vulnerable to the potential financial ruin of long-term care costs – invest in a policy today.

Identity Theft Protection

Although not technically an insurance product, identity theft protection is crucial to have. With the increasing prevalence of identity theft (the Federal Trade Commission reported 1.1 million cases in 2022), the aftermath can be a major headache if it happens to you. Even if you’re not accountable for the fraudulent funds taken out or spent in your name, the responsibility of repairing the damage falls on you.

This includes fixing your credit report, dealing with banks, and going through legal procedures. However, with a reliable ID theft protection policy, you will be assigned a counselor who will manage the damage for you. Make sure to choose a policy that provides restoration services, not just credit report monitoring, which you should be doing independently anyway.

Your Local Independent Insurance Broker

Check if you have the right insurance. We can help you add, adjust, or remove coverage based on what you need. Call Vargas & Vargas Insurance at 617-298-0655 for assistance and answers to your questions.

Prepare your snowplow and hope for a snowy season, as snow plowing time is nearly upon us! Remember that unusual October snowstorm a few years back? If you’re a snow plow contractor in New England, chances are you’re eagerly anticipating another robust winter season.

In such anticipation, you’re likely pondering whether your insurance coverage is adequate to safeguard your snow plow operations.

Here at Vargas & Vargas Insurance, we have provided insurance solutions for countless contractors over the years and have addressed these inquiries extensively. Let’s delve into the world of snow plow insurance, explore the factors influencing its cost, and equip you with the essential knowledge before you hit the snowy roads.

Thinking About Plowing Snow As a Side Gig?

Some drivers use their own cars to make extra money by ride-sharing or delivering packages for Amazon. In New England, adding a plow to your truck to clear snow can also be a lucrative option. However, it’s not as simple as just buying a plow. You need to consider equipment, repair costs, rates, and whether it’s worth the long hours. It’s important to have sufficient insurance before starting this business venture. Vargas & Vargas Insurance can help with that.

Operating a vehicle with a plow in the snow is risky and can lead to accidents and property damage. If you plan to offer snow plow services, it’s essential to have insurance coverage. Vargas & Vargas Insurance can answer your insurance questions and provide professional advice to help you plow worry-free this winter.

The First Steo In obtaining Snowplow insurance in Massachusetts.

Congratulations on starting your own snow plowing business! Before you begin, it is important to contact your insurance broker and inform them of the type of services you will be providing. This is because there are different risks associated with residential and commercial properties. For example, residential properties may have mailboxes or garages that could be damaged, while commercial properties may have freestanding light posts or carport structures that are difficult to avoid. Plowing for commercial clients also increases your exposure to risk and liability, including possible legal claims related to personal injuries from slip and falls, even if you have properly plowed and salted the premises.

Personal Insurance Versus Commercial Insurance For Your Snowplow

Having insurance is important when plowing for money or for fun during winter. The amount of insurance required depends on the type of plowing you plan to do.

Snow Plowing For Your Personal Use

You can use your own car insurance to cover plowing your driveway or walkway. Your auto policy covers the plow, but not any damage it causes. To fully protect yourself and your property, add an endorsement to your policy. Vargas & Vargas Insurance suggests listing your truck as a commercial vehicle to ensure coverage in case of an accident. This way, you’ll be covered for any damage to your property, someone else’s property, your truck or plow.

Snow Plowing For Business Use

When you plow snow to make extra money, you are exposed to high risk. It is important to have the right insurance for you and your business. Personal auto insurance policies do not cover business vehicles. Therefore, getting commercial auto insurance is necessary. This type of insurance provides higher liability limits and is required for business vehicles.

Having the right insurance is crucial for getting snow plowing jobs. People and companies will only hire you if you have a certificate of insurance. This document shows that you have purchased the necessary insurance coverages and limits. You can only get this certificate from a commercial policy.

To plow on public roads, you need commercial auto insurance. If you want to apply for a plowing contract or permit in Massachusetts, you must have a certificate of insurance. This can only be obtained through a commercial auto policy. Different locations have different requirements, so check your local town website or city hall for more information.

If you’re plowing snow for money, Vargas & vargas Insurance suggests getting commercial auto insurance.

Liability Insurance: covers Bodily Injury and Property Damage. Bodily Injury pays for medical expenses and legal fees. Property Damage pays for repairs and replacements.

Collision: covers snowplow repairs after an accident.

Comprehensive: covers repairs after a non-collision incident.

Completed Operations Coverage: protects against personal injury claims, like slip and falls. This coverage isn’t included in a standard commercial auto policy, so Vargas & Vargas Insurance recommends adding it to avoid paying for legal defense and hospital expenses.

Quick Recap:

Snowplow insurance is important in Massachusetts.

It covers damages caused by snow removal vehicles.

It includes liability and collision coverage.

Liability covers damages to other people’s property.

Collision covers damages to your own vehicle.

Snowplow insurance is required by law in Massachusetts.

t is necessary for businesses and individuals who use snowplows.

The cost of snowplow insurance varies based on factors such as location and driving history.

It is important to shop around for the best coverage and rates.

Failure to have snowplow insurance can result in fines and legal consequences

Your Local Independent Insurance Broker

Call Vargas & Vargas Insurance at 617-298-0655 fand speak to one of our team members about protecting you, your loved ones, and your snow plow this winter. You can also text the team at 617-409-0329.

Just because a property is vacant or unoccupied doesn’t mean it should go uninsured. Whether you’ve recently inherited a property, purchased an investment property for renovation, or own a vacant commercial space, securing insurance coverage is crucial to shield it from potential risks.

At Vargas & Vargas Insurance, we have assisted numerous clients in obtaining the necessary insurance for safeguarding their vacant properties, whether personal or commercial. The most common question we receive from these clients is, ‘What type of insurance do I require?’

Well, It depends.

There is more than one-size-fits-all insurance solution for vacant properties; the coverage you need varies based on your specific circumstances.

Insuring A Property That Is Under Renovations

If you have a vacant home undergoing renovation, you’ll require a specific type of policy: a builder’s risk policy.

Builder’s risk insurance is designed explicitly for properties UNDER construction or renovation.

Also referred to as “course of construction” insurance, this policy safeguards both the property and homeowner from potential financial losses due to damage or loss of the project’s structure and materials during the construction phase.

For more in-depth information on builders risk, you can refer to this article: “Do I Need Builders Risk Coverage for my Home Project?”

Insuring a Vacant Commercial Property Under Renovation:

Insuring a vacant commercial property undergoing renovation follows a similar process to insuring a vacant home during renovations: you’ll also need a builders risk policy.

The principle is the same as for homes, though there may be some specific details to consider.

For instance, the type of policy may differ if you’re working on a single building versus multiple projects throughout the year.

Remember, even if you have a commercial building with several units, and not all of them are vacant for renovations, a builders risk policy is still necessary.

Insuring A Property That Is NOT Under Renovations

When your property is vacant and will remain unoccupied for a certain period, it’s essential to secure insurance coverage specifically tailored for vacant or unoccupied homes.

Vacant properties are more susceptible to vandalism and other risks, necessitating specialized protection.

Since no one resides in the property, vacant home policies typically offer fewer coverages compared to standard homeowners insurance policies. These policies typically cover:

1. Dwelling: Protecting the physical structure of your property against damage from various causes.
2. Liability: Providing coverage for injuries that may occur on your property.

Due to the elevated risks associated with vacant properties, these policies are generally about 50% more expensive than standard home insurance policies.

Insuring a Vacant Commercial Property (Not Under Renovation):

Securing insurance for a vacant commercial property that isn’t undergoing renovation follows the same process as insuring a vacant home without renovation: you’ll need a vacant property policy.

A vacant property policy offers the same coverage as a vacant home policy. If you skipped ahead to this section, please refer to the information above for more details.

Insuring a Commercial Property with Vacant Units:

Now, what if you have a commercial property with a mix of occupied and vacant units?

The answer, unfortunately, is not straightforward and depends on the specific situation.

If only a small percentage of your units are vacant, you may still be eligible for a traditional commercial property insurance policy. However, if a significant portion of your units are vacant, a vacant property policy may be required. The threshold between “small” and “large” can vary among insurance carriers, so it’s best to consult with your provider for clarification.

Securing insurance for a vacant property is a significant undertaking. When you’re not residing on the premises, you have limited control and awareness of its status, making comprehensive coverage a priority.

If you need help with insuring a vacant property in Massachusetts, don’t hesitate to contact your insurance agent at Vargas & Vargas Insurance 617-298-0655.