How to get plumbing insurance in New Orleans for a new home purchase

When you buy a new home in New Orleans one major concern is the plumbing because water damage is one of the most common insurance claims on a homeowners insurance policy

Some common water damage claims after you buy a home

  • A busted water heater damages your flooring
  • The toilet or clothes washer will no longer drain
  • Busted pipe inside a wall damages a room

There are few things you can do to protect your bank account after you buy a new home from a water damage claim

 

SERVICE LINE UTILITY INSURANCE 

This coverage can be added to a homeowners insurance policy or a rental property insurance policy for as low as $5 a month

This will cover the replacement of the underground plumbing line that sends water to and from your home

When this pipe collapses water can no longer flow in and out of your home

Toilets don’t work

Showers don’t drain

Washing clothes will no longer be an option

 

What will Service Line Insurance Coverage actually cover?

Standard exclusions of coverage under a homeowners insurance policy don’t apply

You can get coverage for the cause of damage below

  • Rot
  • Wear and Tear
  • Corrosion
  • Collapse
  • Rust
  • Deterioration
  • Tree root intrusion
  • Freeze
  • Animal Damage

YOU GET REPLACEMENT COVERAGE FOR THE ITEMS BELOW

  • sewer line
  • water piping
  • ground piping to a heat pump
  • drain lines
  • underground power lines or electrical wiring
  • communications or data transmission lines
  •  natural gas piping

 

The new Service Line Underground Utility Coverage is now available in New Orleans with our new Homeowners Insurance program and we include the coverage on all our policies if available from the insurance company

WHAT HAPPENS IF YOU DON’T BUY THIS COVERAGE?

Without this endorsement a common claim that happens is when an underground pipe collapses due to tree root root intrusion or wear and tear

The resulting damage such as water back up (if you have this endorsement) is covered but replacement of the pipe itself is not covered and excavation costs are also excluded

What is the average cost of these claims without the endorsement?

The average cost to repair these sewer lines including excavation can average $7500

What is the deductible on Service line insurance coverage?

The coverage will be subject to a $500 deductible which more than likely will be less than your all other perils deductible

Now you can get coverage to pay for pipe replacement, excavation costs and outdoor property that is damaged as a result

 

This coverage is available on homeowners insurance and landlord rental property insurance policies from a select group of insurance companies

Not all insurance companies offer this endorsement

The endorsement will provide coverage up to 10,000 of damage

 

PLUMBING INSURANCE FOR A NEW HOME PURCHASE IN NEW ORLEANS

You can buy a plumbing protection plan from Homeserve as an added protection after you buy a home or even ask the seller the buy one year of coverage as low as $20 a month if you have any concerns about the plumbing in the house

Homeserve will cover 

  • Locating the blockage or collapse
  • Excavation to expose pipe
  • Pipe replacement or repair
  • Repair or replacement of seals and joints
  • Unblocking
  • Fitting external valves
  • Fusing
  • Welding
  • Pipe cutting
  • Backfilling of areas disturbed by repairs
  • Leaking supply pipe to hot water heater
  • Repair/replace burst interior water pipe
  • Unblocking an overflowing toilet or sink due to clogged drains
  • Leaking wax seal
  • Blocked drain

Home Warranty plans will focus on appliances and heating a/c systems and their plans can cost about $50 a month

Homeserve will offer many options to choose from if you have more concerns than plumbing but a stand alone plumbing protection plan for $20 a month may be something to consider for your new home purchase

WHAT YOU CAN DO TO PROTECT YOUR HOME FROM PLUMBING ISSUES

  • Make sure your homeowners insurance policy has the service line endorsement
  • Buy the Plumbing and Drainage coverage plan from Homeserve

At FM Agency Group we are the best New Orleans insurance broker to help you get the coverage you need to protect what you have

If you want more information about the new Service Line Utility Enhancement Endorsement just complete our quick form and we will review the insurance companies in New Orleans that offer this important and inexpensive protection

What is recoverable depreciation on a New Orleans roof claim

After you make a roof claim in New Orleans the insurance company claim rep will provide you an estimate to replace your roof and the company will issue a check

But the claims check will not be for the full amount to replace your roof

It will have an amount that is deducted from the estimate

This is depreciation based on the age of your roof

Your first check will include a deduction for depreciation

It is ok to deposit your first claim check

 

This does not close your claim or prevent you from recovering the full amount to replace your roof

The second check you receive is called recoverable depreciation

In order to get the second check you must show the insurance company you replaced your roof

You can send photos and an invoice to your insurance company claim rep and they will issue the remaining amount needed to get your roof replaced

You must have Replacement Cost on your policy to receive the second claim check

Some insurance companies do write new homeowners insurance policies and place an ACV (actual cash value) endorsement on the policy

So check with the best insurance broker to determine if your have a replacement cost policy

If you have an ACV endorsement your roof claim check will be based on depreciation calculated on the age of your roof

The older your roof the more the insurance company will deduct from your claim check and you will not be eligible for the second check which is recoverable depreciation

THE BEST HOME INSURANCE COMPANIES NEW ORLEANS

Not all insurance companies will pay for roof replacement after a hurricane

Some only pay for repair or replacement of missing shingles

If you need to find an insurance companies that pays for roof replacement at FM Agency Group we work with over 20 insurance companies as the best insurance broker in New Orleans and we can let you know which companies responded the fastest and paid for roof replacement after a hurricane

Not all insurance companies are the same

Complete the form below to get started

What is the difference between a Wind deductible and a Hurricane deductible in New Orleans?

Understanding your wind deductible on your homeowners insurance policy

There is no standard deductible on a New Orleans homeowners insurance policy in Louisiana for wind damage.

Some companies offer a wind deductible.

Others offer a hurricane deductible and other policies may have a named storm deductible

Three common deductible options issued on Louisiana Homeowners Insurance policies

  • Wind or Hail Deductible
  • Named Storm Deductible
  • Hurricane Deductible

HOMEOWNERS INSURANCE DEDUCTIBLE TYPES

 

Wind Deductible

This deductible is applied to all wind and hail events regardless if caused by a named storm or hurricane. Just a windy day and a tree falls on your roof, the claim would be subject to the wind deductible.

The amount could be a value such as 1000, 2500 or a % of the insured amount.

Your policy might have a 1%, 2%, 3%, or 5% Wind deductible

Example)   200,000 house with a 2% wind deductible would result in a wind claim subject to a $4,000 deductible.  So a $4,000 deduction off of your claim check would apply to a wind loss.

 

Named Storm Deductible

This deductible applies when a weather event has been declared by the U.S. National Weather Service to be a tropical storm or a hurricane.

The force of wind must have been caused or resulted from the “Named Storm” event. Only when the storm is a given a name will the named storm deductible apply.

If you sustain just strong winds and there is damage to your house, your all other perils deductible would apply and not the named storm deductible.

This deductible is only triggered if damaged is sustained from a named tropical storm or a hurricane.

The most common Named Storm deductibles are 1%, 2%, 3% or 5%

Example)   200,000 house with a 3% named storm deductible would result in a wind claim subject to a $6,000 deductible as a result of a “Named Storm”

 

Hurricane Deductible

This deductible applies when a weather event has been declared by the U.S. National Weather Service to be a Hurricane only.

Deductibles usually range from 1%-5% as well and some companies depending on the location of your house will offer a flat deductible as low as 1000.

Example)  200,000 house with a 5% Hurricane Deductible would result in a wind claim subject to a $10,000 deductible as a result of a Hurricane claim.

If you have a Named Storm Deductible or a Hurricane Deductible and you sustain wind or hail damage not as a result of a Named Storm or Hurricane, your policy would be subject to the “All Other Perils” deductible which usually start at $500.

If your homeowners insurance policy has a hurricane deductible and your property sustains wind damage from a Tropical Storm, your claim check would not be subject to the Hurricane deductible deduction. Only the all other perils deductible would apply. 

It is best you check your New Orleans homeowners insurance policy and review your policy with the best New Orleans insurance broker and determine what type of wind deductible you have

This may not be an issue if you don’t live in a coastal area where wind damage is very common.

Hurricanes, tropical storms and hail damage are very common in Louisiana.

Depending on the type of wind deductible you have could determine the difference in you getting your roof replaced or basically self-insuring your roof out of your own pocket.

CHOOSING THE RIGHT HOME INSURANCE DEDUCTIBLE FOR YOU

If you have a wind deductible, you should consider a policy with a named storm or a hurricane deductible.

Depending on the location of your house will determine the deductible options available to you.

You don’t have to wait until your policy expires to move to another homeowners insurance company offering a lower wind deductible in your area.

Some companies may also lure you in with a low wind deductible only to raise your deductible at renewal.

Something to consider is ask how long the insurance company has been writing in your area and how long they have been offering a low wind deductible.

Underwriting guidelines can change very quickly.

Rate stability and claims paying ability are key factors you need to consider when you are considering moving your homeowners insurance.

At this time if you have a 5% hurricane deductible, you should consider moving your homeowners insurance and review your coverage with the best insurance broker so you get the protection you need for the best value you want

Unless you live in a coastal area such as Grand Isle or Lafitte, 

you should be able to get a much lower hurricane deductible

Understanding your deductible on your homeowners policy is important.

Examples of Deductibles on home insurance policies.

Here are some types of deductibles offered in South Louisiana

2%, 3% or 5% hurricane deductible

2%, 3% or 5% named storm deductible

2%, 3% or 5% wind/hail deductible

Let’s assume you have a quote for 250,000 dwelling amount on the proposal.

The home quote includes a 2% Hurricane deductible.

The Hurricane deductible is 2% of 250,000.

If you have to make a claim for damage as a result of a hurricane, your deductible will be $5,000.

The insurance company will deduct $5,000 from your homeowners insurance claim estimate

Take a look at your insurance cover declarations page and determine the insured value of your policy and the % of your hurricane, named storm or wind/hail deductible.

Check your policy to determine not only the percentage % of your deductible but the type.

Does your neighbor have a tree that could fall on your house?

If you think your neighbor’s homeowners insurance policy will pay the damage to your house,  you are more than likely wrong.

If you have a high wind/hail or a named storm deductible and would like a low hurricane deductible, we have a variety of home insurance options for you.

Unless you live in a coastal area, you should not have a 5% hurricane, named storm or wind/hail deductible on your policy.

Complete the form below to get started

When should I buy Renovation insurance in New Orleans?

There are a few reasons you need to purchase a home renovation insurance policy in New Orleans and we can discuss a few here below

  • Remodel a new home purchase
  • Remodel a home before you list it up for sale
  • Renovate a vacant property

Not every home you buy is ready to be occupied or ready to lease to a new tenant

For Real Estate investors buying and selling investment property often requires a renovation project

If you just need to paint and clean and you or a tenant can occupy the property in 30 days you are probably ok

HOME RENOVATION INSURANCE AND HOW DOES IT WORK

You want to determine the cost of the renovation to your home and the purchase price to determine the insured value or the insurance amount you want to buy

$100,000 purchase price

$50,000 renovation

$150,000 insured valued or the cost to rebuild your property

You would want to buy a 150,000 renovation home insurance policy

WHAT IS THE LENGTH OF THE POLICY?

You can purchase a policy on a month to month basis

Pay for one month of renovation and keep buying each month until the project is complete

The policy should include most of the insurance coverage you need like wind, hail, fire, theft, vandalism and water damage and also you want to make sure you have Lawsuit liability protection up to 1,000,000

Our new Home Renovation Insurance program is for home sellers of a single property or Real Estate investors that are buying homes and flipping them a month or two later to turn a profit

NEW ORLEANS RENOVATION INSURANCE 

Buying homes in New Orleans may require a renovation project and a standard policy will not cover any remodeling to the property when the property is vacant

You need to find the best New Orleans insurance broker who can specialize in renovation insurance for rental property insurance or homes going up for sale

If you want to review our Home Renovation Insurance program complete quick form so we can get started

When do I need New Orleans Vacant Home Insurance?

One of the most common reasons to get a vacant home insurance policy in New Orleans is when your home is up for sale but unfortunately many homeowners forget to tell their insurance agent

When you vacate a property and leave it unoccupied for over 60 days you risk all future claims being denied

But unoccupied is not often the same as vacant

Go on vacation for a month and your home is unoccupied and your homeowners insurance policy is still good but buy a new home and put your previous home up for sale and it doesn’t sell right away and you have a problem

Unless you purchase a Vacant Home Insurance policy 

You can buy a Vacant policy for one month at a time if you need to

The policy will include fire, wind, hail, water damage and often include theft and vandalism but not all policies include theft and vandalism

You want to check the policy coverage form and ask your Insurance broker

TYPES OF PROPERTIES THAT NEED A VACANT HOME INSURANCE POLICY

  • Homes up for sale
  • Homes in the name of an estate of
  • Rental properties between tenants and vacancy over 60 days

HOW MUCH DOES A VACANT HOME INSURANCE POLICY COST

You can purchase insurance protection for your vacant property for as low as $100 a month with or new vacant insurance program

Most insurance policies for vacant risks make you buy 3,6 or 12 month and one the 3 month policy it is fully earned which results in no refund if you sell the home before the policy is expired

HOME IN THE ESTATE OF

A very common reason for your need of a vacant policy is when the owner of the property passes away and the surviving children inherit the house and have no intention of moving in

The home is placed in the estate of the deceased and the home remains vacant until the family can decide what to do with the home

During this time you can’t keep the deceased homeowners insurance policy active because the owner of the home no longer resides in the property and the home is vacant

A homeowners insurance policy has a vacancy clause that excludes coverage after a certain time and if the homeowner is deceased the insurance company will cancel the policy or not cover any future claims

If you need a Vacant Home Insurance policy complete the form below to get started

 

What are the benefits using an insurance broker

The benefits of using an insurance broker are many and will be reviewed 

Not all insurance brokers are the same

Here are the reasons that benefit you when you decide to work with the best insurance broker

  • A broker works for you not the insurance company
  • The insurance company pays the broker a commission not you
  • You get a claims advocate to work with you on claims resolution
  • Access to more than one insurance company to find the right choice
  • Your insurance broker provides professional advice in your best interest
  • You get a renewal review each year to decide if your current company is still the best option
  • Licensed advisor that explains insurance policy language in easy to understand terms

INSURANCE BROKERS ARE NOT EMPLOYED BY AN INSURANCE COMPANY

A captive insurance agent (represents one insurance company) is an employee of the insurance company. They have one insurance option and when rates go up they offer to raise your deductible and reduce coverage to maintain your current rate

An insurance broker is not employed by an insurance company. They are contracted to represent an insurance company and offer their products but a broker represents many insurance companies and has no obligation to recommend any one insurance company

 

PROFESSIONAL RECOMMENDATION

An insurance broker is licensed by the Department of Insurance and holds a property and casualty license to sell insurance products such as homeowners insurance, rental property and commercial property

The advice you receive for an insurance company recommendation should fit your budget, risk tolerance and satisfy your protection needs

 

INSURANCE POLICY EXPLAINED

Insurance policy language can be confusing. One page of the policy provides coverage but another page takes it away. A standard homeowners policy has many exclusions but you can purchase add on endorsements to give you the coverage you need but if you don’t understand the coverage options you could be left with an uncovered claim

An insurance broker can answer all of your “what if” questions about insurance protection and policy coverage options

 

INSURANCE PROTECTION FROM TOP RATED INSURANCE COMPANIES

Not all insurance companies spend billions of dollars on advertising so you can sing their song or laugh at their commercials

Some of the largest and financially stable insurance companies depend on insurance brokers to recommend their policy to you

An insurance broker will often represent no less than 10 insurance companies and often will partner with 20-30 of the top rated insurance companies in your state

The best insurance broker will offer you multiple insurance options from national and regional insurance companies that offer the best insurance protection for your budget

At FM Agency Group we represent the best insurance companies for homeowners insurance, rental property insurance and commercial property in Louisiana, Mississippi and Alabama

If you are ready to work with an insurance broker to provide you the protection you need for the value you want complete the form below to get started

6 coverage options you need when buying a home in Covington La

When you are buying a new home in Covington La you want to make sure your homeowners insurance quote has these 6 coverage options included

You need to make sure you select the best Covington insurance broker that has access to more than one insurance company and understands all the endorsements or add on coverage you need to make sure after you buy a house you are not paying out of pocket for any uncovered damage

Here are the 6 Covington La homeowners insurance coverage options you need

  • Replacement cost on contents
  • Extended Replacement Cost
  • Roof replacement coverage
  • Water Back up
  • Service Line protection
  • Home Systems

REPLACEMENT COST CONTENTS

When this coverage is removed it allows the insurance claim rep to pay you for your damaged property at a deep discount that saves the insurance company money and you’re left with not much to go out and replace your things

Actual cash value is when the claim check has a deduction for depreciation

ex) If you have a 5 year old sofa and it is damaged instead of getting the money to go out and buy a new one you would get 5 years of depreciation deducted from the claim check

The older your personal property the more the insurance company deducts from the claim check

You want Replacement Cost on Contents or personal property

EXTENDED REPLACEMENT COST

You can purchase up to 100% additional coverage if you need to rebuild your home after a major claim

Most insurance policies only pay up to the insured value listed on the policy but if you have this endorsement you never have to worry about the cost of construction materials inflating the estimate to rebuild you home

When you don’t have enough insurance you would use your bank account to rebuild

 

ROOF REPLACEMENT COVERAGE

I didn’t even know you could remove this coverage but one of our customers was buying a home and his real estate agent recommended her insurance agent to give him a quote and they removed replacement cost on the roof and added actual cash value to make their quote cheaper than ours

Without replacement cost the claim rep will deduct for depreciation on your next roof claim check and the older the roof the less money you get to replace your roof

This one mistake could cost you thousands off the next claim check

WATER BACK UP

An inexpensive coverage add on to give you the coverage needed for damage when the water backs up into your home

This is something most home buyers believe is automatically covered but without the endorsement to the policy you would be paying this damage out of your pocket

This add on can be as low as $25 a year

SERVICE LINE PROTECTION

When the sewer or service line under the slab collapses this coverage allows the insurance company to pay for the pipe replacement

Damage estimate starts around $5,000 so your policy needs to include this coverage

 

HOME SYSTEMS PROTECTION

This is a complete breakdown of your a/c unit, washer and dryer, dishwasher, refrigerator, tv or computers

If you are buying a new home you may want to consider a home warranty for the first year and this add on to the Covington La homeowners insurance policy to give you complete protection of your property

If you are buying a new home in Louisiana and want to get a home insurance protection proposal from the top three companies in Covington La just complete the quick form below

Do I have enough insurance to rebuild my Covington home?

Most Covington homeowners insurance policies are insured up to the insured dwelling amount and not a penny more.

What happens is if the cost of building materials has increased since you purchased your policy you no longer have enough insurance to rebuild your home

If you purchased a homeowners insurance policy for 300,000 a few years ago and your home has a large fire and you need to rebuild you go and find a local home builder to give you an estimate

But their estimate to rebuild is 400,000

The insurance company does not give you 400,000 to rebuild

You get a check for 300,000 and you pay out of your pocket another 100,000

 

When you work with a Covington insurance broker like FM Agency Group we include the one endorsement you need to make sure you have enough insurance to rebuild your home no matter how much the estimate to rebuild is from the home builder

We offer a Preferred Homeowners Insurance policy for Covington homeowners

The policy includes many endorsements or add ons that give you the extra coverage you need to make sure you don’t have to pull from your bank account to cover a shortfall on your next claim check

EXTENDED REPLACEMENT COST

Not all Covington homeowners insurance policies include this endorsement

The simple add on coverage is 25% 50% or 100%

You choose the % of the additional amount of coverage

If you decide to purchase 50% extended replacement cost and your home is insured for 300,000 you would get an additional 150,000 (50%) to rebuild your home so the claim check in the event of total loss would be 450,000 to rebuild your home

That inexpensive endorsement add on to your home insurance policy would give you the security knowing no matter how much the cost of building materials increase you have enough to rebuild your home

Often a local insurance broker will represent insurance companies that specialize in the best insurance coverage not advertising

Complete the form below to get started so we can determine what you need to protect what you have

FM Agency Group is your insurance broker that will help you review your Covington homeowners insurance so you can make the best insurance decision to protect your home

 

What is recoverable depreciation on my Covington homeowners insurance claim estimate?

Most common question we get from Covington homeowners is “I thought I had a replacement cost policy.  Why am I getting a deduction for depreciation on my roof?”

All roof claims are going to be paid using depreciation on your first claim check

When you work with a local insurance broker in Covington you get an advocate that works for you not the insurance company

 

The insurance company will take the age of your original roof replacement and deduct for depreciation based on the age of your roof shingles

An example could be you have a 15 year roof and the insurance company has determined to deduct $2400 from the cost to replace your roof

Your first claim check would include the cost to replace your roof minus the depreciation minus your deductible

 

What is Recoverable Depreciation?

Recoverable Depreciation on your claim estimate is the amount you can recover after you show the insurance company you replaced or repaired the damaged items

It is the additional amount you can recover on the second claim check

Most customers don’t know they can recover this amount so they accept the first claim check, repair their home and assume the claim is closed

It is not

At FM Agency Group we have helped our customers with hundreds if not thousands of claims to help them recover their second supplemental damage check

We had a recent insurance company that only wanted to pay actual cash value (depreciation) on a fence although the policy was a replacement cost policy

When you make a claim with an insurance company you need to have a claims advisor working on your behalf not the insurance company so you can recover what you are owed

You should never profit from an insurance claim

You want to get everything the insurance company owes you for damage and you need to understand all the claim handling payment strategies insurance companies can use so you don’t leave money on the table that belongs in your pocket not in their investment account

At FM Agency Group we provide an in house claims advisor to help you with the claims process and communicate with the insurance company claim representative on your behalf to help facilitate a fair claim settlement at not cost to you

If you are ready to work with the best insurance broker in Covington for homeowners insurance complete to the quick form below to get started

Covington Insurance broker

If you are a Covington Louisiana homeowner you have access to the largest insurance companies writing home insurance in our area

You can buy online in minutes or go to a company agent and buy their home insurance policy so why would you consider an insurance broker?

An insurance broker can provide you the coverage you need from some of the largest insurance companies writing the best homeowners insurance coverage in Covington

And the good news is they can write your car, rental property, flood, boat, RV if you need them

One insurance company to consolidate your insurance protection 

A local insurance broker will allow you to see the rates from more than one insurance company and after the policy is sold is where you get the most value

Each year your home insurance renewal can be reviewed and compared with other insurance companies so you can make sure you are still getting the protection you need at the value you want

If an insurance agent only represents one insurance company they have no other options after a rate increase but to cut your coverage or raise your deductible 

When this happens you get less than what you paid for

The insurance company is now transferring more of the risk to you at the same rate so you lose value each year

Often a local insurance broker will represent insurance companies that specialize in the best insurance coverage not advertising

Complete the form below to get started so we can determine what you need to protect what you have

FM Agency Group is your insurance broker that will help you review your Covington homeowners insurance so you can make the best insurance decision to protect your home

COVINGTON HOMEOWNERS INSURANCE REQUEST