How do you prepare your business for hurricane season? A hurricane can happen at any time. But they mostly occur in June and November. If you operate a business along coastal regions, you may experience severe damage due to a hurricane.
Being prepared will help you get back on track faster after the hurricane. Here are steps to minimize interruptions and keep your employees safe.
5 Ways to Prepare Your Business for Hurricane Season
1. Employee Evacuation Plan
The safety of your employees is important. So make sure you have an employee evacuation plan. Give team members emergency roles to perform during the hurricane. It is also a good idea to train your employees and even perform flood drills to ensure your employees are prepared.
2. Create a Business Continuity Plan
A business continuity plan is necessary to minimize interruptions during a hurricane. You should have an emergency communication protocol and confirm all employee contact information.
3. Get Insurance Coverage
As a business owner, you should obtain the best insurance coverage available before a hurricane. If you don’t have insurance coverage, it’s never too late to get some. Make sure your coverage meets your business needs, including flood insurance and business interruptions. Work with the insurance agent to ensure the policy meets those business needs.
4. Back Up Your Data
Your business has documents, records, and files that you have to secure and protect. You should regularly back up your data and store it in a safe facility. It should be possible to access your data remotely in case of an emergency.
5. Back Up Your Power Supply
A backup generator will ensure you keep your essential systems during the storm. A backup supply will also help you run your business sooner after a storm.
Vargas and Vargas is a premier independent insurance agency, and we put our customers first. That includes helping you prepare your business for hurricane season. We offer customized insurance coverage to meet your specific needs. We are here to answer all the questions you may have about insurance, so contact us today.
Owning a condo is a great way to own your own home. It does come with a number of responsibilities, though, and one of the most important of these is to have a condo insurance policy. This policy protects you in a number of ways, and it’s never a good idea to be without it. If you need one of these policies, contact us today at Vargas & Vargas Insurance in Dorchester, MA to talk to an agent.
Protect Your Home
When you have a condo insurance policy, it covers your condo itself. This means that it will pay for certain damages to the inside of your condo, but not the outside. The condo board owns the outside and will insure that area. The only exception is when a condo owner makes some type of improvement to the outside of the condo. In that case, the owner is responsible for insuring that area as well.
Protect Your Possessions
With all or most of your belongings inside your condo, a major accident or calamity that causes damage to your belongings can be devastating. However, your condo insurance will cover those possessions. It can pay for you to get repairs and/or to replace items that were ruined beyond repair. With this coverage, you won’t have to start over with nothing.
Protect Your Finances
Another problem that can happen in a condo is a third party having an accident there. When that happens, it is often the owner who owes the medical bills. With a condo policy, there is liability coverage included. This will pay for the medical bills so that you won’t have to.
Condo Protection
If you own a condo, you need protection. Call us at Vargas & Vargas Insurance in Dorchester, MA to find out more about this coverage.
It’s easy to understand the importance of home insurance when your investment is immediately accessible to you, as are all of the belongings you put inside. However, a building under construction sometimes requires a little more explanation as to the importance of builder’s risk insurance.
Why Does Home and Builder’s Risk Insurance Differ?
A completed home provides all of the information for proper risk assessment. All of its features are fixed in place for determining the replacement cost value. The liability risks are mitigated as much as possible. Your coverage needs are clear. Thus, the home insurance policy can be tailor-made for your home as it stands, with all factors known.
For a building under construction, there are many unknown or constantly changing variables. Your insurance provider calculates the replacement cost, and therefore coverage, based on the expected features of the completed home. The building’s completion stage is varied. So the liability risks also vary at any given time. At some points, there may be more materials on-premises than on the structure. Because the building changes, it needs a policy that addresses this reality.
How Does Builder’s Risk Insurance Address the Changing Protection Needs of a Building Under Construction?
Why do you pay the same premium and have the same amount of coverage for a building in the beginning stages of construction as in the final stages? This is a fair question considering the amount of loss is much greater when the building is nearing completion.
Builder’s risk insurance addresses this by considering the most coverage needed at any time during the construction period. It also considers the premium needed to cover that risk. The insurance company then takes into account normal construction time periods. Instead of changing the coverage and premium throughout the build, they average the cost to insure the building over the entire construction period at various stages of completion into one premium. This assures that the building has proper coverage at a fair premium, regardless of the building phase.
What Coverages Are Unique to Each Policy Type?
A home insurance policy provides much more personal property coverage and additional coverages. This includes additional living expenses in the event of a claim. These types of coverages would not necessarily be needed under a builder’s risk policy since the home is not occupied.
What about a home addition? Home insurance policies vary on how they cover home additions. It may be that you would have adequate coverage under your home insurance policy. However, a larger addition may require a builder’s risk policy or a special endorsement of your home insurance policy. Having an insurance agent you can trust to advise you on your particular policy and needs is imperative.
A builder’s risk insurance policy provides coverage for theft of building materials and often even for building materials in transit to the building site. It also provides liability protection for the enhanced risk of a building under construction. The liability does not extend to the contractors or subcontractors. But it does provide coverage if a child or neighbor were to wander onto the site and get injured.
Ultimately, all builder’s risk insurance policies are temporary. Once the building is complete, you should consult your insurance agent to discuss whether you should convert to home insurance, rental dwelling insurance, or commercial insurance. For additional information, see part one of our series, What’s the Difference Between Builder’s Risk Coverage and a Home Insurance Policy?
Whether you need home, rental dwelling, commercial, or builder’s risk insurance, Vargas and Vargas Insurance is here to advise you on your journey. We work for our clients, not the insurance company, to provide individualized coverage at the right price. Contact us today to discuss your insurance needs.
You’ve found your dream home, and now you need to protect that dream with home insurance. Maybe you couldn’t find the perfect home you had envisioned, so you are building it. That investment also needs protection, either through builder’s risk coverage or home insurance. How are these two types of homes and home insurance protections the same, and how do they differ? Most importantly, why does it matter?
Who Needs Home Insurance or Builder’s Risk Coverage?
Home Insurance
If you are the owner of a fully constructed home and you and your family reside in the home, home insurance is the right choice for you. Home insurance provides coverage for your dwelling, personal property, and liability you might incur as a homeowner, among other optional coverages. Home insurance is not for rental homes (when you’re the renter), commercial properties, or homes in the construction process.
Builder’s Risk Coverage
Coverage for buildings in the process of being built requires specialty coverage to meet the unique risks associated with a building that is changing daily. The building may be residential or commercial, and coverage may be needed by a variety of individuals, such as:
Homeowners
Property Owners
Contractors
Subcontractors
Ultimately, the individual named on the construction loan, or the person who retains the deed to the property, needs the builder’s risk coverage. They are the one taking on the risk of a loss until ownership changes hands.
When Should You Begin Coverage?
A home insurance policy should begin immediately upon ownership, effective on the date of the home closing. If you change insurance providers, it is imperative that there is no gap in coverage from one insurance company to the other. Make sure you understand the date and the time coverage will cease with the current company and coordinate coverage with your new insurance company to prevent any unprotected gap in time.
A builder’s risk policy provides coverage from the time construction begins until the project’s completion. Because the construction phase is constantly changing, the coverage and premium are designed with this in mind. Most insurers require a builder’s risk policy at the beginning phase of construction. They will not provide a policy mid-construction. It’s just as important to convert your builder’s risk policy to a home or commercial insurance policy once completed for coverage more appropriate for a completed and occupied building.
Now you know who needs home insurance versus builder’s risk coverage and when coverage should begin. For further explanation on how these two policies differ and why it matters to you, see the second part of our series on What’s the Difference Between Builder’s Risk Coverage and a Home Insurance Policy?
Vargas and Vargas Insurance understands the importance of having the right insurance for every stage of your journey. We are an independent insurance agency that works for our clients, not the insurance company. We will customize your coverage for your unique needs at the right price. Give us a call today.
If you are a homeowner, you probably have homeowner’s insurance. This type of insurance generally provides some coverage for your personal property. This coverage is only for the homeowner’s property — it does not cover real estate or property belonging to renters or roommates. If your personal property exceeds the value covered, or if you are a renter, you will need to purchase a personal property insurance policy. If you live in a condo, check out our blog post about condo insurance coverage.
What Does Personal Property Insurance Cover?
According to Insurance.com, most home insurance policies only offer coverage for 40-70% of the home’s insured value. What does a personal property insurance policy cover? Many of the items that you own including clothes, appliances, furniture, and home decor. If these items are damaged or stolen, the policy will reimburse policyholders the estimated cost to repair or replace the property.
But some of the property that you own may not be covered. This could include jewelry, artwork, firearms, pets, and collectibles. Insuring these high-value items will require the purchase of a scheduled endorsement. Many insurance companies will also ask for an appraisal of the items.
Making a Claim
If your property is damaged or stolen, then you will need to contact your insurance company to file a claim. The company may ask you to provide pictures as proof of the damages. Any receipts that you can provide as proof of purchase of your property should go to the company, as well.
When your insurance approves your claim, you will receive reimbursement according to the terms of your policy. The policy will either pay the actual cash value, which includes depreciation and pays out for the estimated current value of items, or replacement cost value. This provides the amount needed to replace the property and does not include depreciation.
How Do You Get Coverage?
When you need insurance coverage, you can contact a direct writer. These agents work directly for a prominent name insurance provider. You could also contact an independent agent. Independent agents can often offer better coverage prices because they will have several options for you to choose from. Also, they will be familiar with insurance needs in your area.
If you live in Massachusetts, Vargas & Vargas is here to help you find the policy that fits your needs. Vargas & Vargas Insurance is one of the premier local independent insurance agencies. We work for our clients and not the insurance company. We will customize your insurance coverage to your specific needs at the right price and are here to answer all of your insurance questions. Contact us today.
Homeowners are responsible for ensuring safety on their property. Consequently, you can be held accountable if someone is injured on your property because of unsafe hazards. This is why homeowners need liability insurance coverage.
How Does Liability Insurance Coverage Work?
Your homeowner’s insurance policy has a liability portion that provides coverage for accidents and damages associated with your property, family members, and pets. For example, a visitor may sue you for compensation if they are attacked and injured by your pet. Additionally, anyone can sue you if they slip and fall on your slippery pavement or sidewalk.
Liability coverage can protect you from the resulting financial loss. To this end, a typical liability policy will cover the following expenses:
The injured party’s medical expenses
The cost of your legal defense
Repair costs for the other party’s damaged property
Some policies cover a wider range of risks. Your policy’s coverage will depend on how much insurance you buy, as explained below.
How Much Coverage Should You Get?
Standard homeowner liability insurance policies cover up to $300,000 worth of injuries and property damages. However, this may not always be sufficient to cover all of the resulting expenses. Consequently, you may need to pay for the extra costs out-of-pocket, which can be financially crippling.
Alternatively, you can increase your insurance coverage. For example, you can extend coverage to up to $500,000 by paying higher premiums. You can also buy an umbrella liability policy that will extend coverage to $1 million and more (up to $5 million).
Final Thoughts on Liability Insurance
Vargas & Vargas Insurance is one of the premier local independent insurance agencies. We work for our clients and not the insurance company. Our team can customize your homeowner’s insurance coverage to meet your specific needs at the right price.
We are here to answer all of your insurance questions. Contact us today to learn more.
Understanding the basic language of your auto insurance policy is important. However, knowing your coverages and car insurance claims terminology is what really matters when your insurance suddenly becomes more than just another monthly bill. Learn more about these important terms:
Liability
Liability coverage has three distinct coverages under one heading. All of them protect the claimant in an accident. The first is the bodily injury liability per person. The amount of coverage shown is the maximum pay-out amount for injuries to any one claimant in an accident.
Next is the bodily injury liability per accident. This amount is the maximum pay-out amount for bodily injury per accident, regardless of how many people receive injuries.
Lastly, property damage liability is the maximum amount that will be paid out for damage to property (autos, buildings, etc.) per accident, regardless of how many vehicles you are held responsible for.
There is a maximum pay-out under your auto insurance. But you are still legally responsible for any remaining damages. That’s why it’s vitally important to discuss your coverage choices with your insurance agent. Maintaining state-required minimums does not release you from full responsibility to the claimant.
Medical Payments
After car insurance claims, your policy may provide coverage for medical expenses to you and/or your passengers up to the limit listed.
Personal Injury Protection (PIP)
PIP coverage provides a little more extensive coverage when you receive injuries in an auto accident. This includes elements such as lost wages and other damages, regardless of who is at fault in the accident.
Comprehensive
Sometimes referred to as “other than collision,” this is for covered damage to your vehicle that is not the result of a collision. Some examples include fire, theft, vandalism, glass breakage, and animals. Coverage is subject to your deductible.
Collision
When your vehicle collides with another object, whether it’s a vehicle, building, pothole, or something else, the damage falls under your collision coverage. It is also subject to your deductible. Comprehensive and collision coverages are required when your vehicle has a lien or leaseholder. It protects their interest in the vehicle until it is paid off.
Uninsured Motorist Coverage
Uninsured motorist coverage protects you when your vehicle is struck by a vehicle that does not have enough coverage, has no coverage at all, or commits a hit-and-run. It may include coverage for bodily injury, property damage, or both. The coverage amount limits the amount paid.
Additional Coverage Options
Insurers offer a variety of additional coverages for your convenience, including emergency road service and car rental reimbursement.
Claim
A claim is when an insured or claimant believes an insurance company should reimburse him or her for damages resulting from an event.
Claimant
An individual who makes car insurance claims against another party (or their insurance company) is a claimant.
At-Fault/No-Fault
Some states require that fault be assigned in an accident and that the responsible individual be held accountable for the entirety of the accident’s damages. But other states are no-fault. That means each vehicle owner’s insurance takes care of damages for their insured, regardless of fault. Massachusetts is a no-fault state.
Subrogation
Even in an at-fault state, it is common for the insurance of the not-at-fault party to pay for damages upfront. Then repairs can happen quickly. The insurance company will then subrogate, or pursue, the responsible party or their insurance for reimbursement of paid-out expenses.
Vargas & Vargas Insurance understands that insurance terminology can be confusing. That’s why, as a premier local independent insurance agency, we strive to build the relationships necessary to customize your insurance coverage to your needs at the right price. Contact us today.
If you own a vehicle in Dorchester, MA, you understand that auto insurance is as critical as car maintenance. Unfortunately, many car owners purchase the minimum auto insurance coverage just to comply. While this may seem like a way to save funds, it can bite you hard when the unthinkable strikes. That said, Vargas & Vargas Insurance shares add-ons you can consider to boost your auto insurance for maximum protection.
Emergency roadside assistance coverage
Have you ever thought about what you may go through when your car breaks down away from home? You might have seen it in movies, but it can happen in real life. While you can’t predict how your car behaves, you can cover yourself with a roadside assistance add-on to ensure that you get services like gas delivery, puncture repair, towing, and other roadside repairs in case your car breaks down.
Engine protection cover
If you reside in a location prone to waterlogging, this coverage is a must for you. Your engine is, perhaps, the most expensive component of your vehicle. As such, insuring it against damage is a smart move to avoid you forking cash from your pocket when a disaster occurs.
Zero depreciation cover
If you have a new or luxurious car, this add-on cushions you against wear and tear when replacing expensive parts. Instead of removing the depreciation factor when replacing parts, the insurance company covers the entire cost of replacement when you have this cover.
Consumable coverage
When your claim is being processed, consumables like nuts, bolts, and oil aren’t covered in the typical insurance coverage. However, as small as they might be, consumable costs can stack up to significant figures when involved in an accident. Thankfully, with consumable coverage, you don’t have to worry about consumable expenses.
Buy auto insurance today!
Would you like to buy auto insurance in Dorchester, MA? Please contact Vargas & Vargas Insurance for a competitive quote.
The average U.S. driver spends 55 minutes per day behind the wheel of an automobile. With that kind of exposure, there’s a good chance you’ll need to utilize your auto insurance coverage at some point. However, waiting until you have a claim is not the best time to learn what common car insurance terms mean. By understanding your car insurance policy now, you can avoid coverage concerns when a claim arises.
Start with these car insurance terms:
Declarations (Declarations Page)
This is the page of your policy that gives your basic identifying information. Examples of this information include the name and address of the insurance provider, to and from dates of coverage, basic coverages included in the policy, deductible amount, premium, and any lien or leaseholders. Your insurance identification cards provide the most basic information about your policy, but your declarations page goes a little more in-depth.
Insurance Identification Card
Most insurance companies provide a paper, wallet-sized proof of coverage. This card shows the very basics of your policy to provide to law enforcement in the event of a traffic stop or accident. It is also very common for an electronic version of the identification card to be provided through a mobile app for even greater convenience. After all, the paper version has to be replaced with an updated version with each policy renewal.
Insured/Insurer
The insured is the person coverage being provided for—generally, the owner of the auto. The insurer is the insurance company providing the coverage for your car.
Lienholder/Leaseholder
The lienholder is the financial institution, or individual, who holds the title to your vehicle. They hold it until you pay the lien in full. The leaseholder serves the same role for a leased vehicle. Both of these parties hold a financial interest in your vehicle, so your policy will list them.
Policy Period
This is the time period your auto is currently insured — usually semiannually, although some auto policy periods are for a year. Most auto policies renew automatically, provided you continue to pay the premium.
Premium
The semi-annual or annual amount you pay for your auto insurance is the insurance premium. This premium can usually be divided into payments that are convenient for you, such as monthly, quarterly, or semi-annual payments.
Deductible
The amount the insured is responsible for at the time of claim is called the deductible. When a claim is less than the deductible amount, the insurance will not make payment. If the claim is more than the deductible, the amount of the deductible is deducted from the total claim amount before the check is written. The deductible is never given to the insurance company by the insured.
State-Required Minimums
Most states require a certain amount of auto insurance for drivers to maintain a vehicle tag and drive public roads legally. State-required minimums refer to the basic amount of coverage required by law in your state. It is important to note that abiding by state-required minimums for your insurance coverage does not relieve you of the legal obligation to pay for damages that exceed that coverage. So discuss your individual risk with your agent. Securing appropriate coverage in excess of the state-required minimums ensures compliance with state laws and prevents out-of-pocket costs in larger claims.
Vargas & Vargas understands there is a lot more to choosing the right coverage than knowing car insurance terms. That’s why we are a premier local independent insurance agency. We work for you, not the insurance company. We are here to answer all of your questions and customize your coverage to your specific needs at the right price. Give us a call to discuss your coverage today.
Having a condo insurance policy brings peace of mind — that is, until you’ve had a claim and realize you don’t understand any of the policy’s terminology. Vargas & Vargas Insurance is committed to making sure you have all the tools you need (and a full understanding of common condo insurance coverage terms) to make the best decisions about your condo insurance coverage. Your home is important to you. Understanding your condo insurance policy is vital to making sure your home has the right protection.
Condo Insurance Coverage Terms
Bare Walls/Single Entity/All-In Master Policies
Your condo association will have a master policy in place to cover the building itself and common areas. There are multiple types of master policies. Knowing which type of coverage your condo association master policy has will help you determine what coverage you need.
Bare Walls
This coverage covers the condo building and common areas. The master policy covers everything from the sheetrock back. But the area within the bare walls is the condo unit owner’s responsibility, including light fixtures, faucets, and everything else. This is the most common type of condo association master policy.
Single Entity Coverage
In this case, the master policy covers the unit as is when the owner moves in, including cabinets, flooring, etc.
All-In Coverage
This rarest form of condo association master policy covers everything but your personal property, including any alterations and improvements you make after moving in.
Dwelling Coverage
Once you’ve determined what your condo association’s master policy covers, you are responsible for the rest. Your condo insurance policy’s dwelling coverage will cover all the permanently affixed items not covered by the master policy up to the dwelling coverage limit.
Personal Property Coverage
This includes all of your personal belongings, such as clothing, furniture, electronics, household tools, and more. It’s important to speak with your agent about items you think fall into this coverage area but may actually not. Examples might be golf carts and four-wheelers. Keeping an inventory of your personal property is important, too; you will need to itemize them in the event of a loss.
Unit Improvements and Betterments Coverage
This coverage protects the upgrades you’ve made to your condo unit, which your condo association’s master policy might not cover. This could include upgraded flooring, cabinetry, light fixtures, or faucets. You’ve worked hard to make your condo personalized for your family. So make sure those upgrades have coverage.
Liability Coverage
While the condo association master policy may provide some coverage for liability incidents on common property, that doesn’t release you from responsibility for liability within your residence. In a condo, your liability risk increases due to the proximity of other condo units. Liability coverage provides legal protection up to your policy limit. Most policies come with a basic amount, but you can increase it for a minimal additional premium.
Additional Living Expense/Loss of Use
When a claim occurs, your condo may not be inhabitable for a time. This is why Additional Living Expense coverage, also known as Loss of Use coverage, is so important. This coverage will help with the cost of displacement up to the time period specified in the policy.
Endorsement
An endorsement is an addition to your condo policy. You may need more coverage than allotted in your basic policy in a particular coverage area. Endorsements allow you to add that coverage. A common example is jewelry. Most policies provide a limited amount of jewelry coverage but allow more coverage through endorsements.
Exclusion
An exclusion is a coverage area that is specifically not included in your policy. Your policy will have a list of exclusions. It’s imperative to review these exclusions because there are often options to provide coverage for the excluded perils separately. One example is flooding. A flood is usually an excluded peril; however, flood insurance is available as a stand-alone policy.
Inflation Protection
The cost to repair or replace damage to your home and belongings does not stay static. So most condo insurance policies include inflation protection, which raises your coverage in small increments each renewal, as needed, to keep pace with inflation.
Risk/Peril
A risk is the possibility of something unexpected happening. A peril is the cause of something unexpected happening. For example, the peril of a fire increases the risk of damage to personal property. Knowing what perils are covered under your policy is imperative for you to have proper protection from the risks you face as a condo unit owner.
For more condo insurance coverage terms, see part one of Condo Insurance Terms You Need to Know. Condo insurance coverage terms can be intimidating while also being vitally important. That’s why Vargas & Vargas Insurance, a premier local independent insurance agency, is here. We will customize your insurance coverage to your specific needs at the right price and are here to answer all of your insurance questions. Contact us today.
Your condo is your home. It’s the place where you make memories. Insuring it properly can be confusing because condos are a little more complicated to insure than your typical home. Condo unit owners share responsibility for the home with the condominium association. What does this mean, and how does it affect your insurance? Vargas & Vargas insurance can help you navigate the often confusing world of condo insurance and condo insurance terms.
General Condo Insurance Terms
Condo
A condominium (condo) is a unit that is individually owned within a building that contains other units, which are also privately owned. All unit owners share ownership of commons areas, including pools, gyms, playgrounds, etc.
Insured/Insurer
The insured is the person coverage is being provided for, generally the owner of the condo. The insurer is the insurance company providing the coverage for your condo.
Additional Insured
The declarations page will list the additional insured, along with the insured. The additional insured is anyone else other than the condo owner who has a legal interest in the home. The most common additional insured for a condo policy is the mortgage company. An additional insured will be notified of the policy renewal and if the policy is in danger of cancellation. They may also be payees on larger claims checks.
Condo Association/Condo Association Master Policy
A condo association is an organization that handles the day-to-day operations and decision-making for a condo community. They and the policies they handle are the major differences between home insurance and condo insurance.
This includes purchasing a condo association master insurance policy. The master policy covers the areas common to all unit owners. The unit owners are typically responsible for everything within the unit’s walls. The condo association master policy covers the rest of the commonly owned structures. However, each policy can be different, so understanding your condo association’s master policy is essential to understand your own condo insurance needs.
Policy Period
This is the time period your condo is currently insured for, which is usually one year. Most condo policies renew automatically, assuming you continue to pay the premium.
Premium
The annual amount you pay for your condo insurance is called the insurance premium. This premium can usually be divided into convenient payments of monthly, quarterly, or semiannual installments if it’s not paid directly to the insurance company through your mortgage escrow account.
Deductible
The deductible is the amount the insured (the condo unit owner) is responsible for in the event of a claim. If a claim is less than the deductible amount, the insurance company bears no responsibility for payment of the claim. If the claim is more than the deductible, the deductible will be subtracted from the claim’s total amount before the insurer pays out. The deductible does not go to the insurance company.
All-Risk/Named-Peril
An all-risk insurance policy covers all potential causes of loss other than those specifically excluded in the policy. A named-peril policy covers events if the policy lists out those specific causes of loss. While an all-risk policy can be more inclusive, it is generally much more expensive and not as common. Most insurers choose to cover the most common risks, providing a broad scope of protection while keeping premiums affordable.
Replacement Cost (RCV/ACV)
When you purchase your condo, the sales price is based on the market value of your home. The desirability of the location and many other factors determine that price. But when you have a loss, the location’s desirability has no bearing on the cost to rebuild your home or replace your roof. That’s why it is important to understand the difference in replacement cost and actual cash value.
The replacement cost value is the cost to replace a damaged item or item, whether it be your TV or all of your belongings. The actual cash value takes into account the depreciated value of the item. For example, if your sofa is five years old, then you got five years’ worth of value from your sofa. So your company will take a deduction from the amount paid for your claim that takes into consideration the age of the sofa. Knowing which type of coverage you have before a claim can prevent many misunderstandings.
General condo insurance terms are important to know, but there are many more terms that can make all the difference in understanding your condo insurance. For more insurance terms, see part two of Condo Insurance Terms You Need to Know.
Vargas & Vargas Insurance is a premier local independent insurance agency. We work for our clients and not the insurance company. We will customize your insurance coverage to your specific needs at the right price and are also here to answer all of your insurance questions. So contact us today.
The only thing worse than having a homeowners insurance claim is having a claim and realizing you didn’t understand the home coverage terms in your insurance policy. Now you don’t have the coverage you thought you had. Vargas & Vargas Insurance wants you to have the knowledge you need to make the right decisions about your insurance. Arming yourself with the knowledge of homeowners coverage terms is crucial in preventing unwelcome surprises when a claim occurs.
Homeowners Coverage Terms
Dwelling Coverage
A dwelling is the building in which you live. In home insurance terms, your home is your dwelling. It is insured for the perils in your policy up to the policy dwelling coverage limit. But this is for the main structure only and does not include the contents. Contents have their own coverage area in a home insurance policy.
Additional Structures Coverage
Any structures on the premises not attached to the main dwelling are other structures or additional structures. This includes a workshop or shed, for example. An amount equal to 10% of the dwelling coverage is usually also allotted toward additional structures as part of your basic coverage. However, you may want to purchase additional coverage, if needed. This coverage does not apply to the contents of the additional structure. Those are covered with your personal property coverage.
Personal Property Coverage
This is for all of your personal belongings, such as clothing, furniture, electronics, household tools, etc. It’s important to speak with your agent about items you think may fall into this coverage area but actually may not. Examples might be golf carts and four-wheelers. Keeping an inventory of your personal property is important, as you will need to itemize them in the event of a loss.
Liability Coverage
Homeowners can be held liable for a wide variety of events occurring on their property. Liability coverage provides legal protection for the majority of these, up to your policy limit. Also, most policies come with a basic amount that you can increase for a minimal additional premium.
Additional Living Expense/Loss of Use
When a claim occurs, your home may not be inhabitable for a time. This is why Additional Living Expense coverage, also known as Loss of Use coverage, is so important. This coverage will help with the cost of displacement up to the time period specified in the policy.
Endorsement
An endorsement is an addition to your homeowners policy. You may need more coverage than allotted in your basic policy in a particular coverage area. Endorsements allow you to add that coverage. A common example is for jewelry. Most policies provide a limited amount of jewelry coverage but allow more coverage through endorsements.
Exclusion
An exclusion is a coverage area that insurers specifically do not include in your policy. Your policy will have a list of exclusions. It’s imperative to review these exclusions, as there are often options to provide coverage for the excluded perils separately. One example is flood coverage. Floods are usually an excluded peril, but flood insurance is available as a stand-alone policy.
Inflation Protection
The cost to repair or replace your home and belongings does not stay static. Most homeowners policies include inflation protection, which raises your coverage in small increments each renewal, as needed, to keep pace with inflation.
Risk/Peril
A risk is the possibility of something unexpected happening. A peril is the cause of something unexpected happening. The peril of a wind storm increases the risk of damage to your roof. Knowing what perils are covered under your policy is imperative for you to have proper protection from the risks you face as a homeowner.
For more homeowners coverage terms, see the first installment of Home Insurance Terms You Need to Know. Homeowners coverage terms can be intimidating while also being vitally important. That’s why Vargas & Vargas, a premier local independent insurance agency, is here to help. We will customize your insurance coverage to your specific needs at the right price and are here to answer all of your insurance questions. So contact us today.
Do you have life insurance? If not, what’s stopping you from having this policy?
If you’ve family members who depend on you for their daily bread, then you need to think again. Consider the state you’d leave them in if you were to die today. The funeral costs alone are too high. Consider any mortgage or student loans you’d been paying. Clearly, these are not debts you want to pass on to your loved ones.
You need to save your loved ones from such problems by purchasing a life insurance policy. If you’re not sure why you need one, our team at Vargas & Vargas Insurance has compiled this guide for residents of Dorchester, MA.
You Need Term Life Insurance
There are different types of life insurance, and term life is one of them. If you’re like 90 percent of people with life insurance, you’ll choose to go with a term life insurance policy.
As the name suggests, term life insurance covers a specific period. In most cases, it is 20-30 years. The aim is to ensure that your loved ones are protected if you die during this period, mostly your working years. It has no cash value until you die, and the premiums you pay are smaller than for whole life insurance.
Insurance is Not an Investment
Since some life insurance policies have cash value, you might think that this is a form of investing in the future. However, this should not be the case. If your goal is to grow your capital over time, you’re better off trying something else.
What you need to put in mind is that you’re protecting your loved ones. If they don’t need any protection, you don’t need this policy.
Are You Considering Buying Life Insurance in Dorchester, MA?
If you’re shopping for life insurance, this is part of the information you should know. There’s still much more you need to know about life insurance. That’s why you need to reach out to our Vargas & Vargas Insurance experts for more information.
When it comes to your home, proper home insurance coverage is vitally important. However, insurance terminology can make reading a quote or policy feel like reading a foreign language. Without understanding home insurance terms, you could find yourself with far less coverage or far different coverage than you thought. Vargas & Vargas Insurance is committed to making sure you have the knowledge you need to make the right insurance decisions regarding your home insurance.
General Home Insurance Terms
Declarations (Declarations Page)
This refers to the page of your policy that gives your basic information, including the name and address of the insurance company, coverage to and from dates, basic coverages, deductible, premium, and any additional interests. It’s an overview of your policy and is often what your mortgage company will ask for to show proof of coverage.
Insured/Insurer
The insured is the person that coverage is being provided for—generally, the owner of the home. The insurer is the insurance company providing the coverage for your home.
Additional Insured
The declarations page will list the additional insured, along with the insured. The additional insured is anyone else, other than the homeowner, who has a legal interest in the home. The most common additional insured for a homeowners policy is the mortgage company. An additional insured will be notified of the policy renewal and if the policy is in danger of cancellation. They may also be payees on larger claims checks.
Policy Period
This is the time period your home is currently insured for, which is usually one year. Most homeowners insurance policies renew automatically, assuming the premium is paid.
Premium
The annual amount you pay for your homeowners insurance is the insurance premium. This premium can come in convenient payments of monthly, quarterly, or semiannual installments. Typically, homeowners pay it directly to the insurance company through a mortgage escrow account.
Deductible
The deductible is the amount the insured (homeowner) is responsible for in the event of a claim. If a claim is less than the deductible amount, the insurance company bears no responsibility for payment of the claim. If the claim is more than the deductible, the deductible will be subtracted from the claim’s total amount before the insurer pays out. The deductible is not paid to the insurance company.
All-Risk/Named-Peril
An all-risk insurance policy covers all potential causes of loss other than the ones specifically excluded in the policy. A named-peril policy covers the causes of loss specifically listed in the policy and no others. While an all-risk policy can be more inclusive, it is generally much more expensive and not as common. Most insurers choose to cover the most common risks, providing a broad scope of protection while keeping premiums affordable.
Replacement Cost Value (RCV)/Actual Cash Value (ACV)
When you purchase your home, the sales price is based on the market value of your home. The price depends on the desirability of the location and many other factors. When you have a loss, however, the location’s desirability has no bearing on the cost to rebuild your home or replace your roof. That’s why it is important to understand the difference in replacement cost and actual cash value.
The replacement cost value is the cost to replace a damaged item or item, whether it be your TV or your roof. The actual cash value takes into account the depreciated value of the item. If your roof is ten years old, you got ten years’ worth of value from your roof, so a deduction is taken from the amount paid for your claim to account for the age of the roof. Knowing which type of coverage you have before a claim can prevent many misunderstandings during the claims process.
Vargas & Vargas Insurance is a premier local independent insurance agency. We work for our clients, not the insurance company. We will customize your insurance coverage to your specific needs at the right price and are here to answer all of your insurance questions. Contact us today.
Home improvements breathe new life and style into your home. They can also bring a decrease in your homeowners insurance premiums. Both can be exciting. Which home improvements not only bring new form and function to your home but also can decrease your homeowners insurance?
1. New Roof
Roof insurance claims compose a large portion of total homeowners insurance claims. Newer roofs are typically better able to handle wind and hail storms. Perhaps when you first purchased your home, you didn’t qualify for a preferred policy due to your roof’s age. But because of the new roof, you may now qualify. Your new roof’s material can also impact your homeowners insurance rates. More importantly, by keeping your roof maintained, you may be able to avoid claims. This will have a positive impact on your insurance through claim-free discounts.
2. Security System
An alarm system monitored by a central station is another way to avoid potential claims by discouraging burglaries and quickly notifying emergency services in the event of smoke or fire. This helps you retain your claim-free discount and prevent damage to your home and loss of property. Your insurance company rewards these efforts in the form of a discount.
Most insurance companies require that the alarm system automatically notify emergency services. It cannot simply sound an alarm or record video. However, they may offer a partial discount for these options. A central station burglar alarm will save you between 5%-15% on your home insurance if your smoke alarms are connected to the monitored system.
3. Wiring and Plumbing Updates
Fire from faulty wiring and water damage from plumbing concerns are also common homeowners insurance claims. The age of these systems may have prevented you from receiving a preferred rate initially. Updating these systems could change that.
While discounts can be available for wiring and plumbing updates, these updates may require the wiring and plumbing to be completed updated by removing and replacing all existing writing and plumbing, rather than a partial update. But any updates to your wiring and plumbing can prevent damage. It can therefore reduce claims and benefit your homeowners insurance over time, even without a specific discount.
4. Simple Updates: Deadbolt Locks and Fire Extinguishers
Deadbolt locks are a simple update to your home that can provide added protection and a potential discount for your insurance. Fire extinguishers may be another easy addition to your discount portfolio.
5. Pool Fencing
Insurance companies often require fencing around a pool due to the inherent risk of an accessible attractant to a drowning hazard. If you do not have a fence around your pool, adding one will reduce the risk of a tragedy. It could also prevent surcharges on your insurance for this risk.
Home improvements provide value to your home regardless of the potential benefits to your insurance. However, when determining which improvements are suitable for your home and the costs associated with each, possible decreases in your homeowners insurance should be considered.
At Vargas & Vargas Insurance, your premier local independent insurance agency, we work for our clients, not the insurance companies. Contact us for advice on how the home improvement projects on your list can reduce your homeowners insurance premiums.
When deciding the monthly premiums for your home insurance policy, your insurer has to consider multiple factors. However, with time, you may feel the need to improve your home for a better living experience. What most homeowners do not know is that such improvements can expose them to uninsured risks. Here’s how home improvements change your premiums and what you should do after such enhancements to keep things in check
1. Effects of Home Improvements on Insurance Premiums
Once you improve your home, you either increase the property’s value, increase the likelihood of peril, or protect the property from risk. Based on the following three scenarios, your insurer may increase or reduce your monthly premium.
Home Improvements That Increase Your Premiums
At some point, you may decide to expand the size of your house, upgrade your kitchen space, or even redesign your bathroom. Such improvements increase the value of your property to an amount exceeding the sum insured. Increasing the value of your property means increased your monthly premiums.
You also attract higher monthly premiums on home improvements that your insurer considers risky. For example, you may decide to spice things up with a private pool. While this increases your property’s value, your insurer may increase your monthly premiums to bolster your liability cover.
Home Improvements That Reduce Your Premiums
Depending on the nature of your home improvements, your insurer can also reduce the amount you pay in premiums. You can decide to renovate your roof or install one that is resistant to disaster. You can even choose to have a locking fence around your pool or install a protective cover. Such improvements are likely to reduce your monthly premiums as they reduce the likelihood of peril.
2. What You Should Do Before Home Improvement Projects to Be Safe
Before starting on any home improvements, you need to contact your insurer. Whether it is a simple addition or a major renovation, your insurer should let you in on its effects on the value of the property. Failing to notify your insurer of improvements may lead to underinsurance.
Almost all home improvements change insurance premiums. Let’s face it; there’s still a chance that you made some home improvements without notifying your insurer. It is not too late. Be sure to contact Vargas & Vargas for guidance on the best way forward. We are a premier local insurance agency that places your interests before those of your insurers. We work for you only and will help you find the best insurance coverage for your needs.
The country’s economy depends on various variables, which include inflation. Inflation has a negative or positive impact on the local industries. Among the sectors affected by the fluctuation of prices is the construction industry. The following is an overview of how inflation affects the cost of replacing your home and how this impacts your home insurance premium.
How Does Inflation Affect the Construction of a House?
As a result of inflation, the building material rates, machinery rates, and labor wages increase annually. The prices of most house equipment also rise due to inflation. When replacing a home, the changes in rates cause a deviation between the initial project budget and the final budget.
The high cost incurred during house construction results in an increase in the insurance premium. The insurance companies raise their premiums to cover and keep up with the increasing repair cost caused by inflation or annual property tax increase. Homeowners should have their property valuated regularly. The new data can be used in the settlement process if the house is damaged.
Home Replacement and Its Effect on Insurance Premium
While determining the initial home insurance premiums, insurance companies consider factors such as the square footage, the year it was built, the number of stories, the number of kitchens or bathrooms, flooring, and roof covering.
During property replacement, the insurance company will replace the lost asset with a similar replacement of the same value and functionality as the original one. However, quality items and luxury add-ons such as swimming pools are expensive to fix or replace if damaged.
The increase in the new items’ prices and the risk of maintaining them force the insurers to increase their premiums.
Vargas and Vargas Insurance is one of the premier local independent insurance agencies. We work for our clients and not the insurance company. We will customize your insurance coverage to your specific needs at the right price. Also, we are here to answer all of your insurance questions. Contact us today.
Home improvements are exciting. Visions of increased functionality, luxury, and property values are almost equal to the initial purchase’s excitement. Home improvement projects are at an all-time high. Families are spending more time at home due to COVID-19 restrictions and fears. As a result, they are making their home as enjoyable as possible. There are many decisions to be made and multiple factors to take into consideration. One of those considerations should be the probability of an increase in your homeowners insurance premiums. Look at what can happen with these five popular home improvements that could increase insurance costs.
1. Increased Square Footage
A home that fits your family’s needs at the time of purchase may no longer do so after a few years. As your family grows, increased square footage is often needed. This could be in the form of an addition to the home, but it can also include finishing existing unfinished spaces, such as a basement or attic. Additions can also mean outdoor space. The addition of a deck, porch, covered patio, or attached garage also necessitates homeowners insurance changes.
Each of these additions increases the rebuild (replacement) cost of your home. Increased replacement cost directly equates to a needed increase in your dwelling coverage. More space usually means more personal property purchases, as well. This could also mean a need for an increase in personal property coverage.
2. Kitchen and Bath Upgrades
Kitchen and bath upgrades are some of the most popular home updates. These upgrades can have the greatest return on investment for property values. While your homeowners insurance is based on replacement cost, not appraised value, upgrades to kitchens and baths mean it will cost more to put your kitchen and bath back to their upgraded condition in the event of a loss. It’s essential to make sure you increase your homeowners insurance coverage relative to those increased replacement costs.
3. Home Office Additions
As more and more individuals work from home, home office additions are becoming more common. A home office may be a modification to an existing space or an addition to the home. It could also mean you need more personal or business property coverage on your homeowners insurance. Your liability exposure is also enhanced, and coverage may need to be increased accordingly.
4. Pools
In-ground pools are arguably the most fun addition. They are also a costly addition with enhanced liability risk. Your homeowners insurance company may require fencing or other risk reduction measures. Reviewing your increased risk and making any needed changes can make the poolside all the more relaxing. A personal liability umbrella policy can add additional liability protection and peace of mind.
5. Home Business
Brick-and-mortar businesses are rapidly decreasing as companies move to a virtual or home business environment. Business in the home brings about an entirely different set of coverages and risks than a personal home office. Disclosing a business in the home and exploring how this affects your homeowners insurance is crucial to your business’s protection.
There are many home improvements that could increase insurance costs, but home upgrades are an excellent way to extend the functionality and enjoyability of your home. Potential increases to your homeowners insurance would be due to the increased cost to rebuild your home and protect your assets. The value of these upgrades and the knowledge that your home improvements are properly covered far surpasses the cost of potential changes in your homeowners insurance premiums.
Vargas & Vargas Insurance is a local, premier independent insurance agency. We understand your home is important to you. So we will customize your insurance to your specific needs at the right price. We will also carefully evaluate home improvements that could increase insurance costs. Contact us to discuss your home insurance needs.
Having your house insured can save you a lot of trouble. House insurance usually covers your house and its contents. However, policies vary, and some may cover the structure alone. In case a risk materializes, you should put in a house insurance claim for compensation from your insurer. Settlement can take days, months, or even a year, depending on the damage.
Making a house insurance claim can be very complicated. Most insurance companies expect you to fill a claim form, giving a detailed description of the incident. You may also have to attach proof of purchase to have damaged items replaced or repaired (depending on your policy). Here’s what happens when you put in a claim on your house insurance.
1. Determination of the House Insurance Claim
Once you put in a claim on your house insurance, your insurer is expected to respond within two weeks. The insurer may contact you for more information within this period. In extreme situations, the company can hire a loss adjuster to investigate the incident. The adjuster will examine the property and ask you questions about its state, before and after damage. The adjuster’s report will then guide the insurer’s decision to accept or deny the claim.
If your claim is denied, your insurance company should send you a detailed report clearly explaining the reasons for the denial.
2. Compensation for Property Damage
Based on the information provided, your insurer makes compensation arrangements. This decision is based on the loss adjuster’s report and your past adherence to the insurer’s policies. The insurer determines the amount of compensation based on the degree of damage and the pre-established policy amount.
The insurer can decide to pay through a bank deposit or by cheque, depending on the claim. However, if you acquired your house through a mortgage, your insurer will wire a payment check directly to the mortgage company. Therefore, you should inform the company of the insurance claim early in the process.
3. Urgent Financial Need and Preventive Repairs
In the event of peril, you may have financial hardship due to the damage to your property. Your insurer should make advanced payments to help you overcome such difficulties. Additionally, any costs you have from making emergency repairs to prevent further damage should be reimbursed by your insurer.
Getting compensated for damage to your home can be quite a headache. Working with a local independent insurance agency can help you avoid this headache. An independent insurance agent represents you and does not work for any insurance company.
Vargas & Vargas Insurance is a premier local independent insurance agency that solely serves your interests and not those of your insurers. At Vargas & Vargas, you will get custom and affordable insurance coverage for your specific needs and have all of your insurance questions answered. Contact us today to get started.
As a business owner in Dorchester, MA, you need to have commercial insurance for your business to cover specific liabilities. However, sometimes it is very challenging to understand the entire concept of commercial insurance, especially if this is not your area of specialization. Vargas & Vargas Insurance has realized that many business owners make grave mistakes when it comes to business insurance and offer some basics on this policy.
Why Commercial Insurance?
So, some business owners do not know why they need commercial insurance, and some of them ignore it entirely, only for them to regret it later after disaster strikes. It is essential to understand that commercial insurance protects your business and the investments you have made against disastrous events.
Having commercial insurance is necessary because it protects all the assets that your business owns. However, commercial insurance may also help you cover the different types of liabilities your business may cause to suppliers, customers, and other parties.
How Does It Work?
Generally, commercial insurance is an agreement that lasts for one year and can be renewed by either party. It involves paying an agreed amount of money to an insurance agency that will assume the liabilities and the damages that your business may experience during the year.
The amount of money paid to the insurance company typically depends on the properties at hand, possible risk exposure, and other possible requirements such as the number of customers and vendors associated with the organization.
Do You Need Commercial Insurance?
Before you start running your commercial organization in Dorchester, MA, you need to have your commercial insurance in place so that you can be ready from the first day of your operations. Vargas & Vargas Insurance will guide you in the process of getting the best commercial insurance to meet the needs of your business.
