How to determine the insured value on a homeowners insurance policy

If you own a home in New Orleans not many homeowners know how much insurance they need on their homeowners insurance policy

There really are four different values to use on your policy and three of them are wrong

There is

  • Market Value
  • Loan Value
  • Appraisal Value
  • Replacement Cost

Market Value is the value of your home including land value and it is usually the listing price if you were to put your home on the market

This value will fluctuate with the current interest rate and recent home sales in your neighborhood

Loan Value is the amount you owe on your mortgage

Mortgage companies and banks don’t understand the insured value

They only want the coverage for the amount of the loan and don’t understand you can’t insure land because… well after a fire, hurricane or tornado…the land is still there

Appraisal value is completed by an appraiser to determine market value of properties just like yours

All three of these values should not be used to determine the insured value limit on your New Orleans homeowners insurance policy

The correct value is called Replacement Cost or Insured Value

The Replacement Cost is the amount for you to hire a contractor to rebuild your home minus the value of the land

It is usually determined by a cost per square foot figure

Some brick homes could be replaced for $125 – $150 price per square foot

If you have a 2500 square foot home and a contractor says new home construction costs are $140/sq ft your 2500 square foot home would cost $350,000 to rebuild

 

Some Common questions we get about the insured value on a New Orleans homeowners insurance policy limit

 

1. Why do I have to insure my house for that much? My home is worth much less.

 

It has nothing to do with the value of your home in the current real estate market

You can find a 1100 square foot home in the Irish Channel of New Orleans sell for $350,000 and you can find the same 1100 square foot home in another neighborhood in Kenner La 70065 sell for $150,000

The insured value is based off the Replacement Cost (cost to hire a contractor minus land value)

 

2. I only owe 75,000 on my mortgage. Can I just write a policy for 75,000?

 

No.  The replacement cost of your home has nothing to do with your loan balance. 

It is the cost to rebuild your home based on the total square feet of your house

And you can’t under insure a house because of the co-insurance penalty.

If you have a 3000 square foot two story home and you only want to write a policy for 150,000 it could be determined that you are under-insuring the home at 50%

300,000 replacement cost and you only want 150,000

that is 50% of the replacement cost so if there is a claim you would be penalized 50% deduction off the claim check

example) House burns down and you want a check for 150,000 but since you under-insured the property by 50% the insurance company would deduct 50% off of 150,000 and give you a check for $75,000

You would not be able to rebuild a 3000 square foot home for $75,000

If you would like a professional review of your insured value on your New Orleans homeowners policy to make sure you are not under-insured or over-insured you can give me a call Tim D’Angelo at 504.348.3131 or complete our quick for below

It’s raining lawsuits in New Orleans do you have an umbrella?

If you own a car, house, boat or rental property in New Orleans you need a personal umbrella policy

You don’t have to be a millionaire to be sued like one in this city

A customer walked into our office recently to ask to increase their uninsured motorists coverage on their car because they only had 25,000

She recently was hit in the rear by the driver of the other car and he had 50,000 of liability and it was not enough

She had back surgery before the accident but now her back is worse and she may need surgery again

That driver hit the wrong person

 

Although a car accident is the greatest risk to your financial assets it can happen at your house or on your boat or at your rental property

You can’t prevent accidents but you can use insurance to protect you from a devastating event you may not financially recover from

The one policy an attorney, a financial advisor and the insurance agent all purchased….

It is the personal umbrella policy and it starts at $300 a year

 

Get a Quote on a Personal Umbrella policy

GET QUOTE

 

For most New Orleans homeowners insurance customers we recommend 300,000 of liability on their homeowners insurance policy but some insurance companies writing will offer 500,000 of liability insurance for as low as an additional $50 a year on your policy

Check your policy and if your insurance company offers 500,000 request the endorsement now

 

Liability insurance is the amount your policy pays for bodily injury or property damage to others you are legally liability for

  • slip, trip and fall
  • at fault car accident
  • fire at your house damages the neighbor’s house
  • you tenant’s friend slips in the kitchen 

 

To qualify for a personal umbrella policy in New Orleans you must have these liability limits 

250,000 Car insurance

300,000 New Orleans homeowners insurance

300,000 boat insurance

300,000 landlord rental property insurance

If you would like a quote on a New Orleans personal umbrella policy just complete the quick form and a licensed insurance advisor with FM Agency Group will contact you

Get a Quote on a Personal Umbrella policy

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2020 List of Homeowners Insurance Companies writing in New Orleans La

The list of homeowners insurance companies writing in New Orleans La is still growing each year

There was a time after Hurricane Katrina when maybe one insurance company was writing new homeowners insurance policies

but now the list is still growing…one good hurricane and this will change the trend

 

Insurance companies make money on homeowners insurance in New Orleans when the wind doesn’t blow

 

The current environment in New Orleans is still profitable to insurance companies from other states, mostly Florida, to enter the New Orleans Homeowners insurance market

Some insurance companies have unsustainable low rates in an attempt to grow their policy count 

This is a gamble that could pay off for you because if you get a policy that is below market rate and the wind doesn’t blow and the insurance company maintains their low rates for a few years….your savings could add up in the thousands $$$

If you go with an insurance company for an extremely low rate on New Orleans homeowners insurance and a hurricane strikes after year one you could be dropped or sustain a massive rate increase and be sent to the Louisiana Citizens Fair Plan because no other insurance companies are writing after a major weather event

 

Request a New Orleans Home Insurance Quote Proposal

GET QUOTE

 

Here is an example from the Louisiana Department of Insurance website 

2020 List of New Orleans Homeowners Insurance companies writing new policies in Louisiana

New $400K Home
Coverage Level: Dwelling is less than 1-year-old with brick veneer construction, 2800 square feet, $400,000 building coverage, $200,000 contents coverage, 2% hurricane deductible/$500 all other peril deductible, clean claims history, 710 credit score, no wind mitigation features beyond the Louisiana building code requirements for homes built after January 2007, and no multiline discount.

Access Home Ins Co (Preferred) $5472 

Access Home Ins Co (Standard) $6870 

Allied Trust Ins Co $2043

Allstate Indemnity Co $8175 

Allstate Ins Co $8941 

Allstate Vehicle and Property Ins Co $4741 

American National General Ins Co $9318 

Americas Ins Co $3728 

Anchor Specialty Ins Co $4211 

Armed Forces Ins Exchange $2364 

ASI Lloyds $2464 

Bankers Specialty Ins Co $3,479

Bankers Specialty Ins Co $4712 

Centauri National Ins Co (Elite-A program) $2716 

Centauri National Ins Co (Elite-C program) $2687

Centauri National Ins Co (Preferred program) $4377 

Centauri Specialty Ins Co $4377 

Encompass Indemnity Co $9256 

Encompass Ins Co of America $5230 

Encompass Property and Casualty Co $8305 

Excalibur National Ins Co $4812

Family Security Ins Co $3973

Federated National Ins Co $2547 

Gulf States Ins Co $2926

Gulfstream Property & Casualty Ins Co $7146 

Gulfstream Select Ins Co $7146 

Homesite Ins Co $5459 

Horace Mann Ins Co $5030 

La Citizens Property Ins Corp $7614

La Farm Bureau Casualty Ins Co $8833 

La Farm Bureau Mutual Ins Co $7362 

Liberty Ins Corporation $9436 

Liberty Mutual Fire Ins Co $6620 

Liberty Personal Ins Co $9436 

Lighthouse Property Ins Corp (Beacon) $3511 

Lighthouse Property Ins Corp (Standard) $5193 

Maison Ins Co $4447 

Metropolitan Prop and Cas Ins Co $2891 

Occidental Fire & Casualty of N.C. $3119

Progressive Property Ins Co $2464 

Safeco Ins Co of Oregon $6086 

Safepoint Ins $3546 

Service Ins Co $2495 

Southern Fidelity Ins Co $2355 

Spinnaker Ins Co $3569 

State Farm Fire & Casualty Co $3432 

The Automobile Ins Co of Hartford $6693 

The Travelers Indem Co of America $6477 

United Fire & Indemnity $7855 

United Property & Casualty $2322 

United Services Automobile Association $4029 

Unitrin Auto & Home Ins Co $4222 

Unitrin Safeguard Ins Co $1857 

USAA Casualty Ins Co $4033 

USAA General Indemnity Co $4366 

 

Request a New Orleans Home Insurance Quote Proposal

GET QUOTE

 

If you would like a quote comparison from multiple insurance companies from one insurance agency click here to get started or complete the quick form below

New Orleans La homeowners insurance guide

Homeowners Insurance Deductible Guide: Transfer of risk strategy

Majority of customers don’t select their own home insurance deductible on their homeowners insurance policy

Their insurance agent does

When we meet with potential homeowners insurance  customers we often see the All Other Perils deductible at $1000 on their existing home insurance policy regardless of the value of the house.

A home valued at 750,000 should not have the same deductible as a home valued at 100,000.

As I discussed in previous blog posts about New Orleans homeowners insurance, a home insurance policy is not a maintenance policy or a home warranty policy.

 

To keep your home insurance rate at an affordable level, you should take the highest deductible you can afford.

Can you handle a $2500 deduction from a water damage claim check to replace your wood floors?

If not, you want a $1000 deductible.

Here is a quick rule of thumb guide to determine the correct amount of your All Other Perils Deductible

If the value of your house is

100,000 – 199,000 your deductible should be $1000

200,000 – 499,000 your deductible should be $2500

500,000 – 750,000 your deductible should be $5000

You should have at least the amount of your deductible available in your bank account

 

HOW MUCH RISK CAN YOU AFFORD?

1.  Have you ever made a claim that was the result of a hurricane or a tropical storm?

2.  Have you ever made a water damage, fire, theft, hail or vandalism claim?

If you are not a home owner that makes claims, you should take a higher deductible and pocket the rate savings if you can afford to do so.

 

TIP:  A home insurance deductible is not the amount you owe to the Insurance company if you make claim.

It is the amount deducted from the claim check.

It is also the amount you agree to pay for damages out of your pocket to the contractor making the repairs.

 

RATE SAVINGS TIP

You should keep your Hurricane Deductible as low as possible and adjust your All Other Perils Deductible based on your financial comfort level and claim history record.

 

How much can I save by taking a higher deductible?

This all depends on the home insurance company you are insured with.

Some companies may only offer a minimal premium savings by taking a higher deductible.

But other insurance companies understand the transfer of risk and will offer a much deeper premium discount.

Discussing your All Other Perils deductible with an insurance advisor is important because we can provide not only more than one deductible option but more than one deductible option from multiple homeowners insurance companies so you can choose the company YOU want and the premium discount that makes financial sense to you.

 

My name is Tim D’Angelo and I would like the opportunity to review some different deductible options with you.

Call me at 504.348.3131 or complete the quick contact form to get started

GET QUOTE

service line endorsement

When a real estate investor discovers a claim is not covered on a rental property it can sink an entire cash flow positive portfolio

For $25 additional a new insurance coverage can be added to cover a previously denied claim

What will Service Line Coverage actually cover?

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

 

The list above are all standard events that are not covered for damage to a 

  • 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 and you can add it to your Landlord Rental Property Insurance policy for as low as $25 a year

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

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 home insurance and landlord rental property 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

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?

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

 

At FM Agency Group we are here to help you get the coverage you need for the value you want

We help Real Estate Investors with their Landlord Property Insurance and home and flood insurance

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 Louisiana that offer this important and inexpensive protection

Rental Property Insurance and what you need to know

The Best Rental Property insurance in Louisiana will depend on your zip code

What’s in your real estate investment portfolio?

  • 1-4 family dwellings
  • Apartment Complex
  • Condo Association

We can help you protect your Rental property investment 

Here are some recent claims some of our customers had

Risk:

Water is backing up into your property from the sewer system

Coverage:
This is a standard exclusion on most rental property policies. 

You need to endorse the policy to add water backup protection. 

Most policies will limit the amount to pay on a claim. 

The cost of the this endorsement is minimal and most real estate investors don’t have this coverage

Risk:
Tenant claims she fell down the stairs and can’t return to work

Coverage:
Your tenant will make a claim against your liability coverage on your policy

A claim representative will be assigned to investigate

Your Liability limit is applicable to another person’s injury claim

You can never have enough liability and the cost of getting the maximum limit available from an insurance company can be as low as $25 difference

Grab the most liability your insurance company can offer

The 300,000 limit will qualify you for a personal umbrella policy

 

Risk:
Your tenant’s car catches fire under the carport and causes damage to your neighbor’s house

Coverage:

Your Liability limit also applies to other person’s property damage

The liability coverage on your policy would repair the neighbor’s damage to their house


FM Agency Group builds value into your Rental Property Insurance

Here are some of the advantages of our policy can provide:

  • We can offer up to 12 months of loss of rental income
  • Every policy includes 300,000 of liability to defend you from slip, trip or fall claims
  • Equipment Breakdown and replace your air conditioning system as long as the breakdown is not from wear and tear
  • Vandalism, Water Damage, Theft, Fire, Hurricane and Liability on included on one policy
  • Water Backup is now available with most companies
  • Get liability coverage if you own your property in an LLC
  • Schedule all your properties on one policy

FM Agency Group builds policy protection for Real Estate investors

The Best Rental Insurance policy protection can be provided for a property valued at 100,000 and we can go up to 10,000,000

If you own a single family home or a 4 plex or maybe an apartment complex, office building, condo building or a strip center, we can help you customize a policy for you and your investment real estate portfolio

We can help real estate investors with their Landlord Rental Property insurance in Louisiana

Give us a call 504.348.3131 or complete our quick form

Top 10 Restaurants on the Westbank

A few places to try if on the Westbank

 

PHO KIM LOAN

New restaurant in a crowded Pho scene.  Heavy on beef pho options so if you are looking for seafood this is not the place. Great Pho and also some vietnamese mixed plate options.

1530 Lapalco blvd Harvey, La 70058 504.900.1591 

https://www.facebook.com/Phokimloan/

 

BEEF CONNECTION

They are the “old” in old school steakhouse.  The place still reminds me of growing up in the late 70’s. The wood paneling is gone,  but we know its probably under the sheetrock. Good steaks and I enjoy the Red Snapper broiled with butter. Lunch or Dinner this place still serves it up old school.  

501 Gretna Blvd Gretna 504.366.3275

 

THE RED MAPLE

Long time restaurant that may have reached its height during the Oil Boom of the 80’s. Still a good place to get a steak and many seafood offerings as well. Good venue to have a nice dinner and some drinks.

1036 Lafayette Street Gretna 504.367.0935 www.theredmaple.com

 

ZEA’S ROTISSERIE & GRILL

I really didn’t want to include a chain restaurant, but I didn’t want to say “don’t eat at chain restaurants” when I eat here every other week. The daily specials are excellent and there are so many choices that I just could not exclude this restaurant as a place to eat on the WB. Grilled Fish, Ribs, Chicken, Duck, Steak and Salads. I think the menu covers it all.  Can’t lose for lunch or dinner.

1121 Manhattan Blvd Harvey 504.361.8293 www.zearestaurants.com

 

RESTAURANT DES FAMILLES

Located in a beautiful Acadian house in Crown Point just off the Lafitte highway. Bayou des Familles is a small waterway or canal home to alligators and turtles. Large windows open to the view of the waterway for diners. Large upstairs for private parties and a wooded bar for cocktails while you wait for a table. Lunch or Dinner with a heavily focused seafood menu with pasta and steaks as well.

7163 Barataria Blvd Crown Point 504.689.7834  www.desfamilles.com

 

SUN RAY GRILL

Carribbean and Pacific influenced cuisines with great options for fresh fish daily.  Breakfast, lunch and dinner (except Sun).

2600 Belle Chasse Hwy Grenta 504.391.0053 http://www.sunraygrill.com/

 

MOSCA’S

Established in 1946 this place is the old school Italian restaurant on the Westbank. Located down Highway 90 towards Avondale in an old wood house home to some great classic Italian home cooked dishes. Shrimp Mosca and Oyster Mosca are some sure bets. I would call first before you go. They have been known to just close for a day or night or even a month.  

4137 US Highway 90 West Westwego 504.436.9942  www.moscarestaurant.com

 

TONY MANDINA’S

Their red sauce is so good, they bottled it “Red Gravy” and its on sale in local grocery stores and at the restaurant. For over 30 years this family owned and operated restaurant has been serving Westbank residents good old home cooked Italian classics.  They do offer Brociolone. You are not going to find many restaurants with Brociolone on the menu in the Greater New Orleans area. My Italian grandmother made one of the best Brociolone but Tony Mandina’s serves up a great one here. Beef Rounds rolled into a loaf stuffed with bread crumbs, sliced eggs and parmesan and mozzarella cheese then braised in the “red gravy”.  It can get crowded for lunch and dinner so get there early.

1915 Pratt St Gretna 504.362.8513  www.tonymandinas.com

 

DAIWA

Could the best sushi in New Orleans be located in Marrero?  Large menu including a “special menu” of unique items you are not going to find on other sushi menus. My favorite is the Grilled Sushi Imperial. Very modern interior and I did see some Karaoke rooms if you want to get some friends together and sing some songs and eat some sushi.  

5033 Lapalco Blvd Marrero 504.875.4203  http://daiwasushi.com

 

LEGACY KITCHEN

Good steaks and full menu options including seafood and ribs.  Daily specials with nice bar inside if you would like to have a few rounds before dinner or meet friends for happy hour.

91 Westbank Expressway Gretna La 70053 in front of the Academy

Now there is no need to cross the bridge on a Saturday night if you are on the WB.

Hope you enjoy.

What is the difference between a Wind deductible and a Hurricane deductible?

Understanding your wind deductible on your homeowners insurance policy.

There is no standard deductible on a 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 home insurance policy 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 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.

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

you should be able to get a much lower hurricane deductible.

 

If you need help when choosing your deductible, here is a guide to help you.

Home Insurance Deductible Guide: How to determine the correct deductible for your house

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.