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.
