If you are buying a home or just not sure if you are still getting the most competitive rate on home insurance, you may ask yourself how much does home insurance cost in Louisiana?
The national average cost for home insurance is around $90 a month per $100,000 of coverage and the average rate for home insurance hovers around $1100 a year
But in Louisiana this figure can change dramatically depending on where your home is located
In North Louisiana a house valued at 200,000 could get home insurance for $600 but the same house in South Louisiana could run over $3000
How does the insurance company determine the rate they charge?
Many factors go into a home insurance rate
Here are a few that can change the rate
>Type of construction (brick is less expensive than frame houses)
>Shape of roof (Hip roof shape is a discount over a Gable shape roof)
>Year built of home (The older the home, the more you pay)
>Credit Score (not all companies use credit, but most do…raise your credit score and pay less)
>Zip Code (different rates apply per zip code)
-monitored burglar alarm
-monitored fire alarm
-mature homeowner (over 55 years old)
-package (car, umbrella, flood)
-homebuilder discount if new construction
>Year of Updates to Roof, Electrical, Plumbing, Heating A/C
The year of replacement can generate a discount usually within 10 years
How can I get a lower rate on home insurance?
Understand your deductible
A deductible is the amount deducted from a claim check
You choose the amount of your deductible to a level of affordability
If $2500 deducted from a claim check is money you don’t have, you choose a lower deductible
The higher the deductible the less you pay for home insurance
Raise your Credit Score
This explains why your neighbor pays less than you for home insurance
Same house….Same coverage and they pay $500 less than you
Understand your credit score by requesting a free credit report
Fix or dispute any errors, pay your bills on time and monitor your credit utilization (the amount of credit you use per month divided by your credit limit)
Adjust your personal property limit
Most home insurance companies will now allow you to choose the amount of coverage you want
In the past you would automatically get 50% of the insured value of the home
ex) 200,000 home would get 100,000 of personal property coverage
But what if you only had $50,000?
You paid for $100,000 and would only get a check for $50,000 if your house burned down
Now you can choose the amount you need
If you only have $50,000 of personal property (the stuff you move into your house), you only have to buy $50,000 of protection
Take advantage of all available discounts
Does the home insurance company offer companion discounts (car, flood, umbrella)
Get a monitored burglar and fire alarm
Have you updated your roof, electrical, plumbing, heating and a/c?
The year of replacement can generate a discount
If you own a home in Louisiana or buying a new one, we can help
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