It’s tax time! At Vargas & Vargas, we’re Massachusetts licensed insurance agents and tax professionals, and we’re ready to help. We want our customers to be aware of the Massachusetts “Circuit Breaker” tax credit for folks who are age 65 and up. We know that every cent counts at income tax time. This income tax credit can be valuable for seniors, whether they own a home or rent.
Seniors Might Get a Cash Refund From Massachusetts — Even If You Don’t Pay State Taxes
According to this Massachusetts Association of Councils on the Aging (MCOA) fact sheet, the “‘Circuit Breaker” tax credit program is a program for individuals aged 65 and older, whose property taxes and half of the water and sewer bills are more than 10% of their annual gross income. Renters can qualify for the credit, too, if your rent is more than 25% of your income and you meet a few other criteria.
Seniors can get this refundable income tax credit even if they owe no income taxes!
A Few Basic Criteria
This tax credit is based on property taxes you’ve paid (or that your landlord paid) in 2019, plus your sewer and water bills. Keep these requirements in mind:
You must be 65 or older this year to qualify.
Your primary residence, whether you own or rent, must be here in Massachusetts.
Your earnings must be less than $60,000 for a single individual, $75,000 for a head of household, or $90,000 for married couples who file jointly.
For instance, let’s assume you’re single and earned $40,000 in 2019. You paid $3,000 in property taxes and $4,000 in water and sewer bills. Since your total eligible payments of $5,000 are greater than 10% of your earnings, you’ll qualify for the tax credit!
How Much Is the “Circuit Breaker” Tax Credit Worth?
According to the official Massachusetts state website, the maximum credit value is $1,130. Talk to a tax advisor about the exact credit amount for your unique situation.
Vargas & Vargas is a local, family-owned insurance agency. We provide competitive insurance products and tax services across Massachusetts. Reach out to us today if you’d like to learn more about our tax services or if you need a quote for homeowners or renters insurance.
Auto insurance is not just one type of insurance. In most cases, you will need to have liability insurance coverage to protect other drivers from you and any mishap you may have. This is mandated by each state and differs from place to place. When you have a car loan, the lender will make you carry certain other types of insurance to protect them. But after your loan is paid, you can decide what other parts of auto insurance you want to carry. At Vargas & Vargas Insurance in Dorchester, MA we pride ourselves on our ability to help you solve your insurance problems at the most competitive rates available.
When it comes to the question do I need comprehensive coverage if I have collision coverage it is important to understand the type of coverage both of these types of insurance providers. In some ways, it is like comparing apples and oranges, the things that are covered by both types are really quite different.
Collision insurance pays for repair or replacement of your vehicle in an accident where you are deemed to be the responsible party or at least partially responsible. This is coverage that usually involves another vehicle but it can also be an inanimate object like a pole or a tree. Comprehensive is often referred to as non-collision coverage. It covers things that are beyond the driver’s control like a large animal running into the road in front of your vehicle. Glass coverage is usually also included. Comprehensive insurance includes weather events that impact your vehicle. If your vehicle is stolen or vandalized comprehensive insurance coverage will kick in.
As you see, these are both very important types of coverage and there is no overlap in the coverage. For more information about both of these types of auto insurance give the office of Vargas & Vargas Insurance in Dorchester, MA a call.
The biggest benefit of working with a local independent insurance agent like Vargas & Vargas is that our licensed local agents work with many insurance companies. We will customize your insurance policy to your own specific needs, then we can move forward getting quotes from the best companies for your unique situation.
Need some Massachusetts insurance quotes? Let’s talk!
All insurers are not created equal, nor are all insurance policies. We’re not here to sling mud or speak badly about any insurance provider! But we are going to explain how every insurance company has an ideal customer in mind, and show you some specific differences between Progressive and Geico insurance policies as examples. Our duty at Vargas & Vargas Insurance is to connect every customer with the right insurance policy. We work with many major insurance companies, and we can help take the guesswork out of any of your Massachusetts insurance policies. As always, if you have questions beyond the scope of this article, reach out to us today.
About Progressive
Progressive is a well-respected insurer with an excellent reputation. Their ideal client is a multi-line household — in case you hadn’t noticed “Flo’s” focus on insurance “bundling” in their advertising campaigns. Progressive will insure your home and autos, and the company offers life insurance choices, too. They provide great coverages for adults with multiple insurance needs.
Progressive provides homeowners insurance in-house; they don’t farm it out.
About Geico
Geico began as an insurance provider for government employees and gradually broadened their scope. Geico’s focus is providing economical pricing on auto insurance, though they also insure recreational vehicles like motorcycles and RVs. They usually have somewhat better rates for some riskier drivers, like those who have had many at-fault accidents, those with many speeding tickets, and young inexperienced drivers.
Geico does not write their homeowners insurance policies. They can provide you a quote, but they “farm out” the policy to a partner.
Our Perspective
At Vargas & Vargas, we work hard to match the right type of insurance policy to our customers. Both Progressive and Geico homeowners policies, for instance, will provide replacement cost coverage. Still, they offer different bells and whistles, as well as different rates.
Both Progressive and Geico homeowner’s policies provide medical payments to others in case of injury, liability coverage, and coverage for water or sewer damages. However, Geico and Progressive recommend lower limits of liability and deductibles on glass coverage, where most insurance professionals do not. And both companies offer varying discounts (like paid-in-full discounts, paperless billing discounts, multi-line discounts, and so on).
The biggest benefit of working with an independent insurance agent like Vargas & Vargas is that our licensed, independent insurance agency works with many insurance companies. We know their underwriting criteria and know their ideal customer. Our goal is to spend time with each prospective client to get a feel for your insurance needs. Then we can move forward getting quotes from the best companies for your unique situation.
Need some Massachusetts insurance quotes? Let’s talk!
Liability coverage may be the least understood portion of a typical Massachusetts home insurance policy. Other standard home insurance coverages — like dwellings coverage or personal property coverage — protect you from losses to your own property. In contrast, liability insurance protects you when you’re legally responsible for someone else’s losses.
How the Liability Portion of Your Home Insurance Policy Works
Liability coverage usually extends to you and family members who live in your household. You’re covered if someone sues you or a family member for causing certain injuries or property loss. Liability insurance pays expenses, such as the cost of your legal defense, court costs, and settlement fees (or damage awards).
Examples of What Liability Insurance Can Cover
Your liability protection typically includes accidental injuries to someone visiting your home. For instance, you’re covered if your guest gets hurt from falling on your icy porch steps.
You’re also covered for certain property damage and accidental injuries caused by you or a covered family member that happens away from your home. Here’s an example. Your child is playing baseball in a neighbor’s yard. He pitches the ball, and it accidentally hits the neighbor’s child in the head. The neighbor’s child is seriously injured. Your liability coverage takes care of your attorney’s costs and the settlement fee related to that event.
What Homeowners Liability Insurance Does Not Cover
Liability insurance does not cover intentional acts or injuries. Also, homeowners liability insurance does not cover losses related to the operation of a vehicle or business. You need auto insurance or business insurance for those costs.
Deciding How Much Liability Coverage You Need
For any type of insurance, the coverage limit is the maximum amount of money that the policy will pay out. The coverage limit for the liability portion of home insurance can be as little as $100,000. However, since the median home value in Massachusetts is $426,330, $100,000 is not enough coverage for most Massachusetts homeowners.
You can and should increase your coverage limit to be equal to or more than your home’s value. Losing your home to pay a settlement fee or damage award is a possibility for homeowners who don’t have sufficient coverage. Contact us today so we can help you find a home insurance policy that has the liability coverage that meets your needs.
It’s no secret that the COVID-19 global pandemic has caused immense strain — physically, mentally, and financially. While the uncertainty of the coming months continues to weigh heavily on everyone’s minds, more and more stories are coming to light every day about individuals and corporations trying to do what they can to help. The insurance industry is among them. Several companies have implemented plans in recent days that will attempt to lessen the monetary burden their customers are facing for car insurance and other policies. Wondering if your company is one of them? Check out the list below.
Farmers
Customers with Farmers or 21st Century-branded policies will see a 25% reduction on their premium for the month of April. The discount will be applied as a credit to next month’s billing statement. If you paid your premium in full, it will be issued as a check or direct deposit to the account on file. The reduction is being applied automatically and requires no action on your part.
State Farm
State Farm policyholders will be apportioned part of a $2 billion dividend from the company. While exact percentages for individual customers will vary by state, policyholders will be credited a percentage of their premium from March 20 through May 1. The company estimates that the average will be about 25% of the premium for that time frame, and customers don’t need to take action to receive the credit.
Progressive
Policies active with Progressive at the end of April or May will receive a 20% premium credit. The company will notify its policyholders when the credit will appear, and it will be automatically credited toward the balance of their next bill. If you’ve paid your policy in full, then either a check will be issued, or the amount will be deposited into the payment account on file.
Allstate and Esurance
Through the months of April and May, Allstate and their family company Esurance are offering customers a 15% refund based on their premiums for those months. The money will be directly deposited into whatever account their latest payment was made (or credited to their account) – so no action is required by customers to receive the money. The company is also offering payment relief plans upon request, extended coverage for personal vehicles in certain commercial capacities, and the ability to sign up for free identity theft coverage through 2020.
Nationwide
For policies active as of March 31, 2020, Nationwide will be offering policyholders a one-time premium refund of $50. When you’ll see the money will vary by state regulatory approval. The company is also offering the ability to suspend some cancellations, defer payments for certain policies, and waive some late fees in certain circumstances due to COVID-19 related hardships. While no action is required for the premium refund, you’ll need to reach out to a representative for additional considerations.
USAA
Every member with USAA who has an auto policy in effect as of March 31, 2020, will receive a 20% credit on two months of premiums without needing to contact the company. Extended coverage, policy leniency, and special payment arrangements are also available upon request.
Geico
A 15% renewal discount is being offered by Geico for auto, motorcycle, and RV policies set to renew between April 8 and October 7, 2020, for 6-month policies and between April 8 and April 7, 2021, for 12-month policies. The credit is also being extended to new business policies written between April 8 and October 7, 2020.
No action is required on the customer’s end; the discount will be credited automatically upon renewal. Cancellations due to nonpayment have also been paused through at least April 30, 2020, for all states, while some states may get longer windows. You can see if your state has a longer grace period here.
Liberty Mutual
Liberty Mutual customers with personal auto insurance policies will receive a 15% refund on two months of premiums, based on the premium amount as of April 7, 2020. The refund will be automatically deposited into the account used to make your last payment or by check. When the funds will arrive is subject to individual state regulations, but customers do not have to take any action to receive their money.
Vargas and Vargas Insurance is here to help you. As local independent insurance agents, we represent many local insurance companies that are also offering to lessen the burden when it comes to your automobile insurance premiums. Contact us with your insurance questions or to get a quote. We’re available during business hours at 617-298-0655, or you can reach out through text and online. We take pride in helping you with all of your coverage needs and look forward to taking care of you today.
As Massachusetts insurance professionals, the licensed agents at Vargas & Vargas Insurance are here to make sure your risks are covered. Part of that mission is to educate our customers about the importance of credible paperwork. Today, we’re talking specifically about worthless jewelry valuations and fake appraisals.
In January 2020, Jewelry Insurance Issues published this article, making all of us in the industry aware that AGA, the “Accredited Gemologists Association” logo has been ripped off and is being used on bogus jewelry certifications. The alarming thing is that AGA isn’t even a gemology lab! It’s a non-profit club whose mission is to provide networking between jewelers, gemologists, and material sources.
So which certificates can we trust?
Diamond & Jewelry Certifications We Can Trust
The most respected diamond or gem appraisal will come from the Gemological Institute of America, or the GIA. Jewelers and investors around the globe trust GIA above any other source. Many investors and insurers will only accept GIA paperwork. There are a few other sources available for certifications, however, including the following:
The retailer or manufacturer may provide a gem certificate when you purchase the piece. These are to be taken with a grain of salt. Some insurers will write a personal articles floater (the type of insurance associated with a fine piece of jewelry) based on this certificate. Others will not.
A professional appraisal from a certified gemologist may also appease an insurer.
Personal article floaters (PAFs) for jewelry are written on a case-by-case basis. If you believe your ring is worth $25,000, the best thing you can do is send it off to GIA (through a related jeweler) for a genuine lab report. As of 2020, GIA lab inspections cost around $500 for general consumers, but a GIA certified jeweler can have them done at a third of that price.
The process takes three weeks. Afterward, you’ll have irrefutable evidence of your gem’s value.
Jewelry Scams Happen
Gem and jewelry “fakes” and “cons” have been around for centuries. If you’ve been conned into buying a fake gem, know you’re not alone. Sometimes a gem can be innocently mislabeled, as in the case of the Black Prince’s Ruby, which is a spinel set in the imperial state crown of England. Yes, the highlight of the crown is an imposter! If your lab report comes back describing your gem as a simulant, lab-created, or of much lower quality than you thought, you may have some options. Speaking directly to the jeweler is your first course of action. A good jeweler will do their best to fix the situation.
If you purchased your piece from an online retailer or auction house (eBay), you might have protections in place via PayPal or your credit card. The good news is that you won’t be paying to insure a fake!
We hope you’ve enjoyed our discussion of bogus gem reports. We sure enjoyed writing it! If you’d like to learn more about insurance for your most cherished heirlooms, email one of our agents today!
Where Does Life Insurance Sit on Your List of Priorities?
We find that life insurance sits very low on most people’s bucket list of things to check into and buy. We find that most of the younger generation feel they are invincible and nothing is ever going to happen to them, like death. Our licensed insurance agents at Vargas & Vargas Insurance view life insurance as a necessity in life, making this an urgent subject to deal with before your next birthday. Everyone is going to die at some point, the question is not if, but when? Are you adequately protecting your family in the event you die?
Life insurance is very cheap when you are younger age, meaning, you can buy a higher amount of coverage with lower monthly premiums. Perhaps you can buy enough insurance to pay off a mortgage, a car, college education, and have enough left over for the end of life bills and funeral costs, leaving no financial burdens on the family.
However, as you age every year your monthly premiums rise and these higher insurance amounts may become too expensive for you after retirement age. We service retired clients at our location in Dorchester, MA area who want life insurance settling for just the cost of their funeral so that it leaves no financial burden on family members. Seldom there is little to nothing left to apply towards the end of life expenses such as medical bills.
An Urgent Call to Action
Life insurance financially takes care of those you leave behind. Death without life insurance can wipe out a family’s savings and finances for a long time to come. If you have no life insurance our agents in Dorchester, MA would like to talk with you about this vital life decision.
Give us a call today, at Vargas & Vargas Insurance, or stop by for a visit. Access our website for more information on life insurance, our many other available services, and the locations of our five available locations. Seeking information costs you nothing and is free with a no-obligation quote.
As Massachusetts insurance agents, the best part of our day is helping first-time homebuyers get a home insurance policy. It’s an exciting and stressful time for young families, and Vargas & Vargas Insurance is here to help.
If this is your first time shopping for home insurance (or if you’ve been a homeowner for years but haven’t read your policy), then it might seem a little overwhelming. We’re here to explain some important points about your policy, and why it’s crucial to have a strong insurance policy in place. In this article, we’ll discuss Coverage D, Loss of Use.
What Is Loss of Use Coverage/Living Expense Coverage/Coverage D?
A strong home insurance policy will protect your investment from a covered loss, like fire.
Imagine your home was to burn down to the ground. If it’s a smoking pile of debris now, then you’ll need to rebuild your home from the ground up. Coverage D is there to pay for your living expenses elsewhere while you rebuild. It will cover things like:
Meals at restaurants
Hotel stays
Renting an apartment
All you need to do is let your claims adjuster know that you’re staying elsewhere and keep copies of all your receipts.
Loss of use coverage will also protect you if you suffer a partial loss. Examples would include:
The city’s sewer system overflows while you’re gone on a business trip overnight. You come home to a basement full of raw sewage. So you can’t stay in the home — it’s a health risk. Coverage D will pay for your hotel stay and meals.
Your neighbor’s house burns down completely, and one wall of your home is burnt and damaged. If you can’t stay in the home while a wall is replaced, then your coverage will pay for your living expenses somewhere else.
How Much Loss of Use Coverage Do I Have?
Loss of use coverage is based on a percentage of replacement cost (Coverage A). Most basic policies start at 10%. For example, a home valued at $200,000 replacement cost may have $20,000 coverage for loss of use. But every policy is unique, so talk with a licensed insurance agent to understand yours.
As a homeowner, you must understand which coverage you have and what each element does. Read your declarations page carefully, and give us a call at 617-409-0329 if you need a homeowners insurance quote today.
A side hustle is an excellent option for most people to generate extra income. If you run a side hustle from your home, you may not have insurance to cover the business. Without proper insurance, you could find yourself at a loss if you get sued or if your property is damaged.
Renters Insurance
Your renters insurance policy covers an extensive range of property inside your home. It can help you recover laptops, computers, tablets, projectors, and printers after theft or damage. Sometimes, renters insurance can cover items you keep outside and use for deliveries such as a bicycle. In some cases, you can cover your side hustle by adding a rider to your current policy.
However, there are exceptions. Most renters insurance policies cover items you use at home and not for business. Some policies might not extend to cover items used outside the home. For example, if you are a photographer with expensive equipment that you use outside the house, a standard renters policy might not help you.
If your policy provider chooses to cover property that you use for business, the limit might be lower than one provided under a business policy. When the business item you want to include in your renters insurance is not part of your current contract, talk to your provider about an endorsement.
How to Know When Your Side Hustle Needs Insurance
When you are considering finding separate insurance for your side hustle, there are several questions you should ask yourself. Those include:
Do customers come to pick products from your home?
Do you handle critical and private information?
Do you handle people’s children or pets?
Could anyone get sick as a result of your business?
Would a lawsuit leave you broke?
Commercial Policies
Let’s face it, your side hustle may be safe for now, but there is no assurance. When tragedy strikes, you need to be prepared. Finding commercial insurance for your business will provide better coverage than your current policy. There are various commercial policies available depending on the risks of your business.
Let’s say that you inherit or purchase a house and end up with two properties. At this point, you have some very big decisions to make. You can sell the extra home or use it as a rental property. Either choice can have immediate benefits, but with rental properties, you have risks as well. These risks may include lawsuits and claims for personal injuries or damages to your tenants. Therefore, before you decide to start your new job as a landlord, we suggest you prepare for the ‘what-ifs.’ You need to know how to protect your personal assets when you’re a landlord.
Understanding Your Risks as a Landlord
There are some things that you cannot be held liable for as a landlord. If your tenant suffers a personal injury while jumping on a trampoline that they brought on the property, you most likely will not be held accountable for it. This is especially true if you were unaware that they had a trampoline or you felt that they were grown up enough to play safely while on it.
The problem arises when you, as a landlord, know that there is a risk of danger to the property or the people who are renting from you. For instance, you may be held liable if:
You know that dangerous animals or pets are nearby.
You are aware of improper maintenance, water damages, or faulty wiring issues and fail to repair them.
You know that criminal activity in the area creates a risk for the personal safety of your tenants.
You are aware that the home is in violation of local laws or building codes.
As a property owner for a rental property, you have to fix the issues that you know are there. The shortlist above is only a few of the things that you could be held accountable for.
How to Protect Your Assets as a Landlord
To protect yourself, you must put effort into securing your personal property. This can be done in several ways. Some of the most common include:
1. Create an LLC for Your Business
The term LLC means that you are a limited liability company. Many homeowners don’t think about the fact that they are a business when they become a landlord, but it’s something to consider. LLCs give you protection from potential problems. The term LLC basically gives you a buffer so that a tenant cannot go after your personal assets — just the business’s assets.
2. Hiring a Skilled Property Management Company
When you have rental properties, you may not know all that you are responsible or accountable for. A property manager can help you sort through applicants, avoid fair housing violations, and more. They have a full understanding of what is involved and can help you ensure your property is operating legally in every way.
3. Limit Potential Areas of Liability
If you know that there is a particular risk involved with the property, do everything you can to lessen it. For instance, if you know there is a family of feral cats roaming near your property, contact animal control to help you catch them. Remember that storm last year? If there is any chance that it caused roof damage, have the roof inspected before you rent it out. The more prepared the property is, the safer you will be.
4. Protect Your Assets with Insurance Coverage
When you have a rental property, you need to protect yourself with proper insurance. The minimum protection for you should come from adding a rider or extension to your home insurance. It can help you cover the cost of something going wrong with your rental property. An umbrella policy may also be wise since it can protect you from possible lawsuits.
Along with this, it is important that you inform your tenants that your policy does not cover them. They should purchase their own insurance to protect their personal property.
If you would like more information on your options as a landlord and protecting what is yours, we are here for you. You can contact us anytime for a quote. Vargas & Vargas is also available via phone calls or text. If you need help during business hours, call us at 617-298-0655.
Some of our insurance companies are offering leniency guidelines for the payment of premiums due to the COVID-19 virus. The premium leniency varies from company to company and not all carriers are offering assistance.
If you are in need of payment assistance or have any questions, please contact our office with an email to customerservice@vargasinsurance.com or by calling our office at 617-298-0655 and asking for a customer service representative to obtain details on your specific insurance company.
Or, Click here to access our online customer service center available 24 hours a day 7 days a week to view your insurance policies, print insurance ID cards, update your contact information, download documents, and so much more.
We recommend you contact us with any questions or concerns you may have regarding your policy with Vargas & Vargas Insurance.
Please remember that should you suffer an AFTER HOURS emergency that cannot wait until we open up for business, call our 24 hours 7 day a week emergency number: 617-322-5289.
We look forward to the day that we can open our doors and you can visit our offices.
Here at Vargas & Vargas Insurance, our goal as licensed insurance agents is to provide competitive homeowners insurance policies to Massachusetts families. Part of our job is educating first-time homebuyers and investors about how homeowners insurance works.
This article is going to address a home’s purchase price versus replacement cost as it pertains to insurance. We’re also going to answer two specific questions we get all the time:
Why am I insuring a home for replacement cost instead of the purchase price?
What is “dwelling replacement cost,” and how does it work?
Why Am I Insuring a Home for the Replacement Cost, Not the Purchase Price?
Homeowners insurance is designed to help you replace a home and its contents from the ground up in the event of a loss.
Imagine your home burns down to the ground. Homeowners insurance is there to rebuild that home completely and replace your belongings. Replacement cost is our best estimate of what it will take to rebuild that home, in your neighborhood, per square foot.
However, it’s important to know that the purchase price of a home is not equal to replacement cost. Purchase price includes the land the dwelling is sitting on, for example, which doesn’t need to be replaced after a fire.
What Is Dwelling Replacement Cost, and How Does It Work?
We figure every dwelling’s replacement cost individually with a formula: square footage by replacement price (sqft x rp). Replacement price depends on factors like:
Your location
Current labor costs
The expense of materials like wood, brick, carpet, and roofing
As a result, dwelling replacement cost changes from time to time. We also consider:
Special enhancements like moldings, architectural finishes, columns and more
Fireplaces and stonework
Systems like central heat and air, central vacuuming, and sprinkler systems
Anything else special or unique about your home
In many cases (but not all), a home’s replacement cost is higher than the purchase price. This is good news for you as a buyer. If there is a total loss, you will come out financially ahead if you have a mortgage.
If you’re buying a home for the first time, congratulations! It’s a tremendous accomplishment. The staff at Vargas & Vargas Insurance is ready to help you get the homeowner’s insurance you need. Reach out to us today at 617-409-0329 for a homeowner’s insurance quote, and check out our blog for more great Massachusetts insurance topics.
It’s important that you’re well-informed before you access all or part of the cash value of your life insurance policy. After all, you took out the policy to provide for your survivors. That’s why the agents at Vargas & Vargas Insurance work hard to have the answers our clients are looking for. You need to know what impact accessing these funds could have on their future and your own.
Benefits: The life insurance company may offer you a lower interest rate than you can get with a conventional bank loan or by taking a cash advance on your credit card. A policy loan does not qualify as taxable income. You’re typically not required to repay the money since you’ve basically borrowed your own funds.
Drawbacks: However, policy loan repayment is to your beneficiary’s advantage. After death, the insurer usually deducts the amount you borrowed and the accumulated interest from the death benefit.
Withdrawal
Benefits: When the amount withdrawn is not greater than the total of paid premiums, the withdrawal is not taxed. The rules governing a withdrawal depend on your policy. Some policies allow dollar-for-dollar withdrawals.
Drawbacks: With other policies, a withdrawal reduces the death benefit by an amount greater than what the policyholder withdrew. Withdrawals that exceed premiums paid are usually taxed.
Policy Surrender
Benefits: You’ll receive the policy’s cash value.
Drawbacks: Your insurer may charge a surrender fee. If you owe any debt from policy loans, the insurer also subtracts your debt from your cash value. Generally, the income from a policy surrender is taxable. Most importantly, you’re effectively canceling the policy. Your survivors will not receive a benefit from the policy.
We’ve provided this information as a general introduction to accessing the cash value in your life insurance policy. If you have specific questions about life insurance policies, contact our team for assistance.
People often get confused when referring to storm surge damage as opposed to flooding. Storm surge creates damages as a result of the force of the water pushing and pulling a structure, whereas flood damage occurs with inland flooding and standing water.
Storm Surge Damage
When it comes to storm surge damage, most commercial insurance policies directly cover this type of damage. Although the damage stems from water, it isn’t classified as flood damage. Anyone who lives near a coastline or waterway adjacent to an open body of water that experiences storms should make sure their commercial policy mentions this type of protection specifically to help prevent losses when a storm occurs.
Getting the Right Policy
Finding the right commercial insurance policy can be tricky, which is why it helps to use reputable insurance agents who have agents with insight and experience helping clients get the right coverages. Anyone who lives near the Dorchester, MA area, should sit down with an agent from Vargas & Vargas Insurance to find out what options are available and can help protect from threats such as storm surge damages. With an agent to assist you, losses and gaps can be minimized and you get greater peace of mind knowing that you are covered.
Don’t guess when it comes to selecting commercial insurance coverage that will protect property from storm surge damage. Call or stop by Vargas & Vargas Insurance, serving Dorchester, MA to find out what policy terms and conditions outline and how to find a policy that matches current and future needs. Agents are ready to help serve clients to give them ultimate protection.
The forced indefinite closure of many small businesses throughout the nation has caused many owners uncertainty about their ability to retain employees and successfully reopen following the COVID-19 pandemic. The Keeping American Workers Paid and Employed Act, which was passed on March 27, provides emergency funds to qualifying businesses with a maximum of 500 employees.
What Is the Keeping American Workers Paid and Employed Act?
The Keeping American Workers Paid and Employed Act is a $377 billion package of grants and loans intended to help keep small businesses across the nation functional during and after the COVID-19 pandemic. The Paycheck Protection Program, the largest section of the act, provides small businesses with loans that are to be used to continue paying employees while businesses are closed. These loans may be obtained immediately through over 800 SBA-certified banks and credit unions. Other aspects of the act include:
Entrepreneurial assistance.
Emergency EIDL grants.
Small business debt relief.
Paycheck Protection Program
Under the Keeping American Workers Paid and Employed Act, the Paycheck Protection Program will provide loans to qualifying small businesses. The amount can be as great as 250 percent of the business’s total monthly payroll. It provides temporary funds to cover employees’ salaries, tips, and benefits. In doing so, the act hopes to minimize the financial difficulties that both employees and the small business will face in the coming months.
Other Elements of the Keeping American Workers Paid and Employed Act
The act also includes several billion dollars in funds that may be used to grant immediate relief to qualifying businesses. This section allows for:
Up to $10,000 through the EIDL program.
The provision of counseling, training, and other services to struggling businesses.
The provision of sick leave.
Easier access to other loan programs.
Many small businesses will need to adjust how they handle their finances in the coming weeks and months in order to successfully reopen and stay open. However, the emergency funds provided by the Keeping American Workers Paid and Employed Act make it easier to pay bills and employees. By keeping employees paid throughout the pandemic, businesses keep their employees’ financial struggles to a minimum and increase their likelihood of returning instead of searching for new positions.
The CARES Act was signed into law today. The SBA Economic Injury Disaster Loan (EIDL) program has been accepting applications for about three weeks. The EIDL application is complicated and requires extensive information to be submitted both at the application stage and during the process of the loan request.
EIDL provides up to $2Million and rates are: 3.75% 30yrs PROFIT Businesses; 2.75% 30yrs NON-PROFIT Organizations
ALL business owners negatively impacted should immediately apply for EIDL assistance. You can find the application on SBA.gov and click on the amber-colored COVID-19 banner at the top of the page. Download the application forms, complete and sign, and upload with accompanying documentation. Be thorough for the best chance of speed and success. ALSO: check off ONLY EIDL financing otherwise your application will be held up.
From our CPA James Henderson, “there are many solutions for business owners. Some are external. Like loans, SBA or otherwise, loan modifications, tax credits, grants and vendor/landlord accommodations. Some are internal, like expense management, cash flow projections/management, client revenue deferral, new service offerings, and staff lay-offs. This crisis times scream for a holistic coordinated/planned approach, rather than a knee-jerk “get a quick loan for cheap” approach”
“I have viewed many of the seminars regarding the SBA EIDL and CARES act financing, and have several clients engaged in the process. One thing that has come up over and over again is the necessary involvement of the business owner’s CPA valued advisor to get the right program in place depending on a client’s particular circumstance. There are payroll tax credits available for retaining your workforce. And with some deeper dive, probably a lot more.”
If you do not work with a CPA, our friends at Aurora Consulting are offering free advice and an affordable consulting fee if a business needs their direct assistance to collate the information and complete and submit the application to SBA. SBA allows a consulting fee up to $2500 maximum. Linda and Trevor have agreed that they will charge only $750.00 as their consulting fee to complete and submit an EIDL application. They will accept a $250.00 upfront payment with the balance due later at a date to be agreed upon by both parties. They don’t want to negatively impact your already-strangled cashflow and are willing to work with anyone who needs their assistance. Basic advice and guidance is free of charge.
They attended a webinar provided by the Governor of Connecticut, Ned Lamont, to discuss the basics of the CARES Act to provide assistance to business owners.
Here are highlights from the webinar with more to follow in another newsletter soon:
CARES Act website is not active yet
SBA.gov website does not yet have CARES Act information
Programs will not be available for a week or two
It is recommended to apply for BOTH EIDL and CARES Act financing. Get the applications in process. Once a determination is made for approval, you should then choose which of the two loans works best for your needs.
CARES Act Loans are basically an SBA 7a Loans up to $5MM, short term loans that will be converted to grants if you retain employees.
Employee Retention: this has been most actively discussed in the media and seems to be a priority of the CARES Act financing options. That leads to other questions about how to qualify and that aspect remains to be seen based on the soon-to-be-released CARES Act guidelines from SBA
RECORD KEEPING: Step up the quality of your record-keeping in terms of Employees and Operating Expenses. A mention was made that “forgiveness” of the loan will be decided after an interview and query for proof or Employee retention and that funds were used for Operating Expenses.
SBA does not yet have a timeline when the Lender guidelines will be available to follow for lending but there is an urgent priority within SBA to coalesce the information from the CARES Act and to get information to SBA Lenders
501C3 organizations are eligible under EIDL and CARES Act
500 employees or less
They are looking to access the Small Business Owners Guide for CARES Act which should be available tonight and we will share pertinent information with you in other email newsletter updates
Linda and Trevor have been fielding calls and queries from anxious business owners all week. They are doing their best to parse the information and get ACCURATE information to you. We strongly recommend you slow-down your decision-making. We’ve already seen some business owners making bad decisions to obtain capital out of desperation. We use the phrase “EVER-EVOLVING” to describe the lending atmosphere in general, and the emergency programs specifically.
Please contact Aurora Consulting and mention that you received this message from us, please SHARE this email with anyone you feel may find the information useful.
Please reply to this message should you have any additional questions!
The Massachusetts restaurant industry is thriving, and you have invested substantial time and money into launching a successful eatery. It is important to protect your investment, but the dining industry poses certain risks that may not be covered by standard commercial property, general liability, or workers’ compensation insurance policies.
Restaurant entrepreneurs should be aware of several specialized coverages available to them:
Product Liability Coverage: The food-service industry demands rigorous health and safety standards. However, even with sound food-handling protocols, foodborne illness may strike and make guests ill. Also, cross-contamination in the kitchen may trigger allergic reactions in some diners. Product liability coverage can help insure against claims made by guests who become ill from eating at your restaurant.
Equipment Breakdown Insurance: Restaurant equipment can be expensive to own, lease, maintain, and repair. Unfortunately, this expensive equipment can break down or fail as a result of weather events or a power surge. Equipment breakdown insurance can help you cover out-of-pocket costs associated with certain instances of equipment failure.
Food Contamination Coverage: This insurance may protect against losses arising from spoilage resulting from mechanical or power failure.
Liquor Liability Insurance: If you serve alcohol, you should already maintain the liquor liability insurance required by Massachusetts law. However, you will want to check your limits and exclusions and make sure you are covered for both your on-site and catering activities.
Loss of Business Income Insurance: If your business is closed for any period of time because of property damage or severe weather, loss of business income insurance may help bridge gaps in income so you can meet your financial obligations.
Commercial Auto Insurance: You may need commercial auto insurance for company-owned vehicles like food trucks or catering vans that employees drive. If your employees use their personal vehicles to deliver food, you may require hired and non-owned auto insurance to protect against accidents caused by the employee in the course of his delivery duties.
Additional Coverage: Your restaurant likely has furniture, furnishings, and artwork, and you will want contents coverage to help pay the cost of replacing these items in the event of damage or destruction. If you lease the building in which your eatery operates, you may also need betterment coverage. This coverage provides protection against loss or damage to fixtures or improvements you have made to the space.
A restaurateur who owns her building will have different insurance needs than one who leases space in a food court. Similarly, a steakhouse that offers a selection of expensive wines may require different coverage than a deli that serves paper-wrapped sandwiches. Contact the local experts at Vargas & Vargas Insurance to ask about a customized insurance package that is suited to your specific needs.
At Vargas & Vargas Insurance, our job is to provide the right insurance policies to protect your investment into your home and to protect your family and belongings. Today, we’re talking about earthquake insurance. Before we get any farther, we should point out that most dwelling policies don’t include earthquake coverage. In other words, if a huge 8.1-magnitude earthquake were to rumble through Massachusetts and toppled your home to rubble, you would not be covered with a standard homeowner’s policy.
Earthquake coverage is a rider that can be added to any home insurance policy. It’s worth the money if you ever experience a significant loss, and it’s certainly worth the peace of mind.
Does Massachusetts Experience Earthquakes?
Yes! According to the Northeast States Emergency Consortium (NESEC), the state has felt 408 earthquakes over the last 450 years. That’s almost one per year on average. Earthquakes occurring in surrounding states, and even as far as Quebec, Canada, have been felt in Massachusetts, too.
Even though our earthquake history in recent years isn’t as scary as in other states like California, Massachusetts homeowners are always at risk of earthquake loss. Preparing for one now can protect your home later.
On Home Valuations and Earthquake Deductibles
Earthquake insurance is written based on the replacement cost of your home, not the purchase price or property tax valuation. In other words, your company will insure your home based on what it will cost to build a new home from the ground up, just like through your general homeowner’s policy.
However, deductibles work differently with earthquake insurance. You can choose your deductible to be 5%, 10%, 15%, 20%, or 25%. It’s vital that you understand these deductibles as they relate to a loss.
For example, let’s say your home replacement cost is $250,000. A 10% deductible is $25,000. Earthquake insurance won’t come into play for a small loss. If a small earthquake occurs and breaks all your dishes and some windows, the damage won’t be more than your deductible of $25,000. However, if your entire home were to turn to a pile of rubble, you’d be entitled to a check for $225,000.
Ultimately, the choice to insure your home against earthquake damage is entirely up to you. It’s an affordable addition to any homeowner policy, but it’s important to choose the right coverage for your specific property. Reach out to a licensed insurance agent at Vargas & Vargas Insurance today to learn more.
The safety of our clients and team has always been our first priority. The #coronavirus (COVID-19) has likely had an impact on our personal and business lives, and we continue to monitor this evolving situation closely.
Vargas & Vargas Insurance is prepared to have our staff work from home and will follow all instructions set forth by federal and state authorities.
We will be able to provide the same service and customer care as we have in the past. However, the situation is very fluid and we trust you will understand if it takes a little longer than usual to respond to you. There are various ways to reach our team:
Via a call 617-298-0655 Via a text 617-409-0329 Via our service center, click here Via our website, www.vargasinsurance.com Via an email to customerservice@vargasinsurance.com Or, Click here to access our online customer service center to view your insurance policies, print insurance ID cards, update your contact information, download documents, and so much more.
If you have traveled to China, Iran, South Korea, Italy, Japan, Hong Kong or have been in contact with someone who is ill because the incubation period for this virus is two weeks. Please refer to the CDC website or mass.gov as resources for any updates and refrain from any interactions with the public.
The best way to help yourself and others from spreading the virus is to practice good prevention methods.
1. Wash your hands frequently with soap and hot water for at least 20 seconds. 2. Use hand sanitizer when unable to wash your hands. 3. Sneeze and cough into your elbow, not your hands! 4. Avoid touching your face (eyes, nose, and mouth) with unwashed hands. 5. Stay home if you are feeling sick and avoid close contact with others who may be sick. 6. Clean and disinfect frequently touched objects (including cell phones).
If you are experiencing the above symptoms, please seek medical attention right away and call the healthcare facility ahead to let them know you are coming!
It is more important than ever to strengthen our social bonds. Seniors face particular health risk from this virus, yet taking precautions only reinforces social isolation. Please take the time to call, text, or send a message to your neighbors. Ask if any elderly friends or neighbors need help with grocery shopping. Remind them to stock up on prescriptions and to make provisions for child care in case they may need to seek treatment. Consider setting up a phone tree or email list for your block so that people can be in touch about what they need.
Stay healthy, wash those hands and let’s remember our neighbors!
When it’s time to pack up your suitcase and head out of a town for some much-needed R&R, the last thing you want to think about is your home’s security. In reality, however, burglars prey on houses that are obviously left unattended for extended periods of time. Taking a few simple steps before you leave town can ensure that your home and property remains intact while you are away, both from trespassers and home disasters.
Be Mindful on Social Media
You’d be surprised what people take note of on social media. Don’t publicize specifics about going out of town before or during your trip. Likewise, if you receive expensive gifts over the holidays and are soon leaving town, don’t post them on your account. Burglars look for easy targets like these.
Keep Valuables out of Sight
Close your blinds and curtains before you leave, so outsiders can’t see what’s inside. This won’t just prevent burglars from spotting valuables, such as electronics. It will also make it more difficult for them to view additional points of entry to break into.
Forward Mail and Packages
If you are expecting packages from online shopping or know your mailbox will be overflowing before your return, take the time to temporarily forward your mail to your work or a friend’s house. Packages left unattended on the front porch are not only at risk of being stolen. They are a sure sign that no one is home to retrieve them.
Have a Neighbor Watch Your Home
Ask a trusted neighbor or friend to stop by your home a few times throughout your trip. They can turn on the lights, move your car, or simply ensure that everything looks secure. Giving the impression that someone has been home is an effective deterrent to thieves.
Use Light Sensors and Timers
Installing timers and motion sensors on indoor and outdoor lights is an effective security strategy. It will make sure that anyone lurking around your yard or house is seen, as well as indicate to any potential burglars that someone might be home.
Don’t let your vacation end on a sour note by coming home to an empty or ransacked house. With these simple steps, you can reduce the risks of theft while you’re away. However, even the most cautious vacationers can experience a burglary or home invasion. Talk to our team today about the right home insurance coverage to give you more peace of mind.
