2 reasons your Kenner homeowners insurance rate went up

One of the most common questions we get when we talk with Kenner homeowners is why did my home insurance rate go up?

The answer is there could be a few things at work here

When you review your homeowners insurance the best Kenner homeowners insurance broker you can start to uncover the reason(s) you received a rate increase on your renewal

When you initially get a rate increase, your first reaction is

“I want to switch to another insurance company”

Before you jump ship and move your homeowners insurance

you should consider a few factors

INFLATION GUARD ENDORSEMENT

All homeowners policies have an inflation guard endorsement built into the policy

The increase could be a standard 1-3% increase of all coverage amounts at renewal

Each year at renewal your insurance coverage amounts will increase by the % of the inflation guard endorsement and as a result with increased insurance coverage your rate goes up

What is an inflation guard endorsement?

The reason this endorsement exists is an attempt to keep up with rising home construction costs

The insured value of your home is based on the cost it takes you to hire a contractor to rebuild your house after a claim

It has nothing to do with property values going up or down in your neighborhood and is never based on recent home sales

The cost of a 2×4 piece of lumber has no bearing on your neighborhood resale value but the cost of a 2×4 has almost tripled in the last year

Building materials go up in value and so goes the cost to rebuild your house

Can I remove the inflation guard endorsement?

No you can’t

But you and your insurance broker can determine the estimated replacement cost of your home and if the cost to rebuild your home is less than the insured value on your Kenner homeowners insurance policy you can request the insurance company lower the insured value

If you own a 2000 square foot house and your insured value has increased to 350,000 due to an inflation guard endorsement,

it may be time to run a replacement cost estimator or have a home builder give you an indication of the current replacement cost of your house

 

YOU RECEIVED A RATE INCREASE

All insurance companies will take a rate increase at some time

As a result of one of the most active Gulf Coast hurricane seasons in recent memory insurance companies will be taking rate increases as high as 20% in some zip codes

If over 25%, something might be wrong

You home insurance renewal should never jump 25% at renewal

If it did there are some possibilities at work here

  • your policy was initially rated incorrectly
  • your insured value may have been too low at inception and the company is raising the insured value to meet the current replacement cost of your house
  • the company is losing money in your zip code and either did not properly rate your area or they are taking heavy losses and need to take action
  • they are trying to get out of Kenner and either leave your zip code or leave Louisiana
  • something happened to your credit score since policy inception and the company ran your credit again and it went up

Kenner Homeowners Insurance discounts you may qualify for

Did you get a new roof? 

Did you purchase your auto and umbrella with the insurance agency? 

Did you purchase a monitored burglar and fire alarm? 

Did you purchase your flood insurance with your current insurance agency? 

New discounts are being introduced by homeowners insurance company every day

If you are ready to talk with the best Kenner insurance broker to deliver low rates from A rated homeowners insurance complete complete the form below

Transfer of risk on Covington homeowners insurance

A Covington homeowners insurance strategy you can use is Transfer of Risk

You can transfer more of the risk to you when you take a higher deductible

The insurance company does not want you to make small claims

I see it every day….claims payouts as low as $500

When you work with the best Covington insurance broker they help explain the that a homeowners insurance policy is not a maintenance policy or a home warranty policy

You only want to use your homeowners insurance policy for large financially devastating claims

When you take care of the small damage losses your insurance company will reward you with a lower insurance rate

The transfer of the risk from the insurance company to you

The deductible is the amount the insurance company deducts from the claim check

The higher the deduction on the claim check, the lower rate you pay for home insurance

You are telling the insurance company that you will take care of the amount of the deductible which could be 1000, 2500, 5000 or 10,000

$10,000 is a large deductible option but you will be rewarded with a possible annual savings of $1000 with some insurance companies

Go five years without a making a claim and selecting a 10,000 deductible has saved you $5000 over 5 years

DO YOU MAKE COVINGTON HOMEOWNERS INSURANCE CLAIMS?

If you are someone that doesn’t make claims,

you need to consider a higher all other perils deductible.

All other perils deductible is any claim that is not a hurricane or named storm.

Here are some common home insurance claims where  the all other perils deductible would apply

-Water claims (not flood which is rising water from outside)

-Busted pipes

-Busted water heater

-Fire

-Theft

-Vandalism

-Smoke damage

What’s this all about?

Transfer of risk is not just a homeowners insurance strategy for wealthy individuals

This is something you can do as well

You can save a considerable amount of money over time by taking on a higher deductible and moving some of those savings to increase your car insurance liability and make sure you have the insurance protection in place to protect you, your family, your investments, your assets and most importantly your future earnings

And remember only take on the amount of risk you can handle

Insurance is used to protect you from a financially devastating event

Raise your deductible to a level that would not hurt you financially

If a $1000 loss is a financially devastating event,

don’t raise your deductible higher to save money on your Covingtion home insurance rate

Insurance is to help you sleep at night knowing you are protected,

not to keep you up at night wondering if a claim is covered

It is best to use the best insurance broker to help you find the insurance protection you need at the value you want 

Complete the form below to get started

Kenner insurance broker

If you own a home in Kenner or buying a new house you should consider using the best Kenner homeowners insurance broker

When you use an insurance broker you gain access to the Top rated insurance companies writing new policies in a zip code and you get the benefit of a local insurance agency after the policy is sold

Low rates and the insurance protection you need from an insurance broker that writes homeowners insurance policies in Kenner each day

Some of the largest insurance companies don’t write new homeowners insurance policies in Kenner so you may have to consider a regional insurance company that will focus less on advertising and more on low rates

Which types of homes in Kenner get the lowest rates?

Underwriting factors, but not limited to, the home features below can provide you the lowest rates

  • Brick over frame construction
  • Hip shape roof over gable 
  • Year built (the older the home the more you pay)
  • Year of roof replacement

Kenner homeowner insurance rates are going up

When your rate goes up and your current insurance broker only has one option or didn’t even offer you any other options to consider you may end up paying more than you should

Insurance brokers and agents don’t control the rates insurance companies charge but they can offer home insurance proposals from multiple companies that want to write insurance in Kenner

You want to find a policy with a low hurricane deductible and low rate without lowering or removing important insurance coverage

Never find yourself in a situation of stripping away insurance coverage you need to get a lower homeowners insurance rate

Some of the benefits of the best Kenner homeowners insurance broker

  • Homeowners quote proposals from A rated insurance companies
  • Guidance and Coverage explanation in simple terms
  • Claims advice in your best interest not the insurance company
  • Annual renewal rate review so you can continue to get the lowest rate each year

If you own a home in Kenner La or want to buy a new home in Kenner complete the quick form to get started

Liability insurance for Laplace real estate investors

Real estate investors in Laplace need to know how much liability insurance is enough to protect their rental property investments and should use an insurance broker to help them find the best coverage at the lowest rate 

Most rental property policies start at 100,000 of liability or lawsuit protection and in our community we know 100,000 is not enough

 

The cost of hiring an attorney to defend you can exceed 100,000 so for as low as $20 a year you can get much more lawsuit protection 

No matter what you do as a landlord rental property owner you can’t prevent a tenant from having friends over and a guest trips, slips or falls

These are the most common liability claims presented to landlords

Since you can’t prevent your tenant from suing you regardless if you are actually liable you need to buy as much liability insurance offered

The standard liability lawsuit protection limits are 100,000 to 1,000,000

What is the cost of Liability insurance in Laplace for Real Estate investors?

A rental property insurance policy should included liability unless you purchase a Citizens Fair Plan dwelling policy because these policies do not include any liability protection just property coverage

The difference from 100,000 to 300,000 could be as low as $20 a year so if your policy only has 100,000 let your insurance broker know you want to raise it up to 300,000

A few insurance companies do offer 500,000 on their rental dwelling policies and your insurance company offers the 500,000 limit it is in your best interest you buy it

When you get a letter in the mail on behalf of your tenant from their plaintiff attorney that is the moment when you want as much liability as you can get

Most common claims against Laplace Real Estate investors

  • Slip, trip and fall from tenant or tenant’s guest
  • Tenant caused fire

Does Liability insurance cover a fire caused by a tenant?

If the damage results in property damage to others but not your tenants

Your tenant needs to carry their property insurance coverage for their personal property but if the fire causes damage to the neighbor’s house or vehicles parked in the driveway your liability insurance policy will pay for the neighbor’s property damage

Liability insurance is not just for slip, trip and fall claims

 

It also covers property damage you are legally liable for so if your tenant’s kitchen fire burns down the neighbor’s house your liability insurance limit needs to be high enough to cover property damage claims against you as well and the minimum of 100,000 is not going to be enough

If you are a Laplace Real Estate investor and need to lower your expenses or increase your insurance protection on one or one hundred properties FM Agency Group is the best Laplace insurance broker for real estate investors

Complete the quick form below to get started

 

 

Laplace insurance broker

If you are a Laplace Louisiana homeowner you have insurance options with top insurance companies that offer wind and hail on one insurance policy

You may experience a recent rate increase or you are just looking to lower your home insurance expenses

We offer the best homeowners insurance coverage in Laplace, La

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 is what we can offer you

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

 

After the policy is sold is when we get to work for you

  • We offer annual renewal reviews so you can decide each year if you are still getting the lowest rate with the best insurance protection
  • Claims advice when you need us most because we represent you not the insurance company
  • Coverage selection that is customized to your protection needs

In Laplace you should not have a two policies for homeowners insurance

One that is for wind and one for everything else

You can buy one homeowners insurance policy with a low deductible and low rate when you work with FM Agency Group

We recently helped a local homeowner with better insurance coverage, a lower deductible and a much needed lower insurance rate on her homeowners insurance policy

And as an added bonus she also had a rental property in Laplace

We were able to lower the insurance rate more than $800

A local insurance broker like FM Agency Group 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 Laplace homeowners insurance so you can make the best insurance decision to protect your home

Am I covered on my New Orleans rental property policy if my tenant has a dog?

Most New Orleans rental property insurance policies do not offer any liability to a landlord if your tenant’s dog causes a claim

But…there is one insurance company that can but you need to qualify as a real estate investor

Best Practices with Tenants is not to allow pets not only for liability reasons but for damage concerns

Have them purchase an HO-4 policy to protect their personal property and provide them a layer of liability starting at 100,000 of lawsuit protection and also if they accidentally burn your property down

Intentional damage is not covered but accidental damage would be covered under their HO-4

Does your tenant have a car insurance policy?  

If so they can purchase the HO-4 policy from their car insurance company for as low as $10 a month and get a car insurance discount

Everyone wins

If your tenant does not want to purchase an HO-4 policy and has a dog we understand you may need a tenant in your rental property and you need to make an exception

Does the New Orleans Rental Property insurance policy have any breed restrictions?

First you need to understand no liability will ever extend to a prohibited breed of dog

Prohibited breeds of dogs include:

  • Akitas Inu
  • Alaskan Malamute
  • American Bull Dog
  • American Staffordshire Terrier
  • American Pit Bull Terrier
  • Beauceron, Boerboel, Bull Mastiff American Bandogge
  • Bully Kutta (any other Mastiff breed)
  • Cane Corso Caucasian Ovcharka (Mountain Dogs)
  • Chow Chow
  • Doberman Pinscher (miniature Dobermans acceptable)
  • Dogo Argentino
  • English Bull Terrier
  • Fila Brasileiro (aka Brazilian Mastiff)
  • German Shepherds
  • Giant Schnauzer
  • Great Dane
  • Gull Dong (aka Pakistani Bull Dog)
  • Gull Terrier
  • Husky or Siberian Husky
  • Japanese Tosa / Tosa Inu / Tosa Ken
  • Korean Jindo
  • Perro de Presa Canario
  • “Pit Bull”
  • Rhodesian Ridgeback
  • Rottweiler
  • Staffordshire Bull Terrier
  • Thai Ridgeback Wolf or Wolf hybrid

and any mixed breed dog containing any of the aforementioned breeds

Here is a sample of the policy form you need on your rental property policy

You can purchase up to 1,000,000 of lawsuit protection on rental property to protect you as a landlord

Our new rental property insurance program for real estate investors can give you the coverage you need for

For New Orleans Real Estate investors you need the best insurance broker with FM Agency Group so complete the form below to get started

 

Tenant damage not covered by your New Orleans rental property insurance

When is damage from your tenant covered under your New Orleans rental property insurance policy is a common question we get…

A rental dwelling landlord insurance policy on a dwelling three (DWG-3) does provide coverage for theft and vandalism but the policy includes two types of tenant damage that is excluded

 

INTENTIONAL DAMAGE

Any intentional damage by your tenant should be covered in your lease and protected against with the collection of a security deposit

You should provide your tenant with a list of items that can reduce the security deposit if you have to repair or replace

Here is a sample list you could provide to your tenant(s) 

You can use this sample list Security deposit deductions

Any intentional damage caused by your tenant such as spray painting the walls or punching holes in the drywall would not be covered by your insurance policy

WEAR AND TEAR

Any maintenance issue is not a covered claim by an insurance policy

Damaged blinds, stained carpet, nail holes in drywall, scratched hardwood flooring

They are wear and tear issues caused by daily use of your property

These two types of damage would be covered by your security deposit not your landlord rental dwelling insurance policy

What is covered under my rental property insurance policy due to tenant damage?

Recently there was a tenant evicted from an apartment complex in New Orleans

Upset about being evicted she burned down the apartment complex

Fire is a covered claim loss under a policy but arson committed by the named insured (owner of the property) or by the direction of the property owner is not

Accidental fire damage caused by your tenant is covered

Leaving a candle burning and the unit goes up in smoke or running a bath and falling asleep were two actual claims filed recently 

This is considered accidental damage and fire and water damage are covered under a dwelling 3 (dwg-3) policy form

 

Not all Rental Property policies cover water damage so it is best to understand your policy

We have a new Rental property insurance program for Real Estate Investors

Some of the most important coverage options that are available on our new Rental Property insurance program include

  • Lawsuit Protection
  • Theft 
  • Vandalism
  • Water Backup
  • Loss of Rental Income
  • Sewer Line replacement
  • Air Conditioning Heating System Mechanical Breakdown

To find the best insurance broker for Real Estate investors you can complete the quick form below and FM Agency Group will review your insurance protection to help you lower your expenses so you can keep more of your rental income

The best rental property insurance policy for New Orleans real estate investors

The Best Rental Property insurance for real estate investors will depend one the type of property you need insurance for

You need the best insurance broker to help real estate investors choose the insurance coverage needed to each type of property

  • Single family properties
  • Multi family properties
  • Apartment Complex
  • Condo Association
  • Under Renovation
  • Vacant Properties
  • Short Term Rentals
  • Tenant Occupied on an annual lease

New Orleans real estate investors are always looking to lower their expenses so they can keep more of their rental income or buy more rental property

When you find the best real estate investor insurance program in New Orleans it will allow you to keep your expenses low and give the opportunity to expand your real estate investment portfolio

FM Agency Group builds value into your Rental Property Insurance policy

Here are some of the advantages of our new Real Estate investors rental property insurance program can provide:

  • We can offer up to 12 months of loss of rental income
  • Every policy includes 1,000,000 of liability to defend you from slip, trip or fall claims
  • Vandalism, Water Damage, Theft, Fire, Hurricane and Lawsuit protection included on one policy
  • Get liability coverage if you own your property in an LLC or your personal name
  • Schedule all your properties on one policy and get one bill 
  • Pay Month to Month on properties that are a Vacant property, Home renovation, short term rental or tenant occupied on an annual lease

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 5 mistakes made when buying New Orleans Homeowners Insurance

Buying homeowners insurance policy to protect your most valuable asset is something that you need because it financially protects you from an unexpected loss so it is important that you find the best New Orleans homeowners insurance company to protect what you have

If you choose the wrong policy or make a mistake,  

your policy could not respond to a claim and you could be financially devastated

What are some common mistakes when buying homeowners insurance?

 

1. YOU BUY THE WRONG COVERAGE

You decide to purchase a house, buy a homeowners insurance policy and intend to move into the property

After a few months, something changes and you decide to “flip the house” and put it up for sale

The problem?

There is a vacancy clause in a homeowner policy contract

The usual clause is between 30-60 days. Some policies will exclude theft and vandalism if the property is vacant over a certain time frame and other companies will exclude coverage and void any future claims    

If you buy a house and the intended occupancy is “vacant”

you need to purchase a Vacant Home Insurance Policy

Vacant Home Insurance policies can be purchased as month to month or 3,6,9 or 12 month terms

If you decide to move out of your property and lease it to tenants you would need to cancel your homeowners insurance policy and purchase a rental property insurance policy

 

2. YOU DON’T BUY ENOUGH COVERAGE

You get a great deal on a house and you borrow $100,000, but the replacement cost of the house is $300,000.  

You determine you only owe $100,000 so that is all you need to insure the house since that is the loan value.

The problem is homeowners and dwelling policies have a Coinsurance Penalty Clause built into the policy contract.

The clause will state you have to insure the property at least 80-90% of the replacement cost.  

If not, your claim payment will be reduced by the amount you under insured your property.

ex)  300,000 replacement cost of the house.  

You insure it for 100,000.  

You under insured the property by 50%.  

The house burns down and you expect a check for $100,000 but since you under insured the property by 50%, your claim check will be reduced by 50%.  

So $100,000 Dwelling Amount on the policy minus 50% penalty = $50,000 claim payment to you on a total fire loss.

You can purchase an extended replacement cost endorsement to give you an extra 25% of coverage if the rising cost of building materials results in a larger amount to rebuild your home

 

3. YOU PURCHASE A HIGH DEDUCTIBLE TO LOWER THE PREMIUM

This is a legitimate option to New Orleans property owners to lower your rate, but you must determine you can absorb the deduction (deductible amount) from a claim check.  

We have customers that take on a 10,000 deductible on properties to lower the premium, but this is not a good option for most homeowners and we don’t recommend a 10,000 deductible.

 

ex)  An overflow of an upstairs toilet floods the house.  

The flooring and sheetrock are destroyed on two floors.  

It results in a $15,000 claim,  but the company deducts $10,000 from the claim check.  

You now only have $5,000 to repair your house.  

If you don’t have the money to pay for the repairs, you will be left living in a damaged house.

4. YOU DON’T HAVE PROTECTION FROM THE LOUISIANA GUARANTY ASSOCIATION

In 1970, the Legislature created the Louisiana Insurance Guaranty Association (“LIGA”) as a private, non-profit entity designed to create a safety net for insurance consumers if their insurer becomes insolvent during the period of their policy coverage.   

Before you purchase a Louisiana Home Insurance policy,  you should ask if the insurance company is protected by LIGA.  

Why?

Every homeowners policy insured by an admitted insurance company in Louisiana is protected up to $500,000 insured value.

Think of your money in your local bank is insured up to $250,000 deposit if the bank becomes insolvent.

LIGA is the same protection for your house if the insurance company leaves the state and becomes insolvent and can’t pay any claims.  

 

5. MATERIAL MISREPRESENTATION ON THE APPLICATION

Most home insurance applications include this statement 

“Any person knowingly and with intent to defraud any insurance company files an application or statement containing false information could result in denial of future claim payments or result in the policy being voided”

Make sure you read the entire homeowners application before you sign it and answer every question accurately so you will be covered in the event of a claim.   

The fundamental principle of insurance is to be covered financially in the event of an unexpected and sudden loss.

Don’t make the mistake of blindly signing the insurance application the agent or company prepared.  

In Louisiana, you will be responsible for the statements on the application you signed.

A few days ago a customer asked us how he could find the best affordable homeowners insurance policy to insure his new home purchase. 

After speaking with the customer we agreed on a home insurance company that was able to fit his needs and he went on to the real estate closing happy as a new home buyer. 

 

So if you are thinking about buying a new home…. 

 

What is the best way to find the right insurance policy for you? 

 

The single best option is to ask your friends or family where they have their insurance policy and if they are satisfied with the service and the coverages provided by the Insurance Company. 

 

But be careful who you ask. 

 

What if you decide your friend Bob is your best choice for advice. 

What if Bob makes every decision based on “price” or “the cheapest”? 

 

How do you know if Bob is cheap? 

 

Here is a old joke about your friend Bob.

After being away on business, Bob thought it would be nice to bring his wife a little gift.

“How about some perfume?” he asked the cosmetics clerk.

She showed him a $50.00 bottle.

“That’s a bit much,” said Bob, so she returned with a smaller bottle for $30.00.

“That’s still quite a bit,” Bob complained. Growing annoyed, the clerk brought out a tiny $15.00 bottle.

“What I mean,” said Bob, “is I’d like to see something really cheap.”

The clerk handed him a mirror. 

What is wrong with buying insurance that is the “cheapest” 

There will always be one company that is the cheapest

There will always be one company that will be the first to go out of business

There will always be one company that is the first to stop writing and leave the state

Be careful of the cheapest quote 

It could just be an introductory rate followed by a 25% rate increase at renewal

Rate Stability is a very important factor when shopping for New Orleans homeowners insurance

If you’d like to work with the best insurance broker who will listen to what you need and protect the assets you worked so hard to buy,

give us a call at 504.348.3131 or you can complete the form below to begin

What’s this all about?

Take your time and research the homeowners insurance company when you are looking to buy a new home insurance policy.

Claims service is sometimes more important than price.  

Rate Stability over the past few years may be something you need.

Don’t always buy the cheapest quote you get.  

Most clients call us with the goal of finding the cheapest home insurance policy, but claims service, insurance rate stability and insurance agency staff customer service are all key factors to consider.  

Be sure to avoid the above mistakes New Orleans Homeowners make each day. 

Protect yourself and more importantly your property you worked so hard to acquire

If you ready to work with the best New Orleans insurance broker complete the quick form below

 

Rental property insurance for Real Estate investors

Real Estate investors need insurance protection for different types of investment properties

 

VACANT HOME INSURANCE

Real Estate investors need to purchase a vacant policy when the property is no longer occupied by a tenant and is either up for sale or between tenants over a 60 day period

If the wrong policy is in place there is a chance of a denial of future property damage claims

You can purchase a vacant home insurance policy on a month to month term and only pay for 30 days of coverage at a time

The cost of the policy can be as low as $100 a month and it includes the insurance protection needed

The policy will include the standard coverage of fire, wind, hail and water damage but our program will also include theft and vandalism

HOME RENOVATION INSURANCE

If a property is purchased and there is work that is needed to either flip the property and get it back on the market or it needs a remodel project before a tenant can move in the policy that is needed is a Home renovation insurance policy

This policy will cover the current value of the home minus the land value plus the renovation amount you are going to put into the house

This will give the insurance protection you need during the renovation

You can purchase the policy one month at a time until the renovation is complete

The rates start as low as $100 a month

SHORT TERM RENTAL PROPERTY INSURANCE

Not all rental property insurance policies cover properties unless there is a long term annual lease signed by a tenant

A short term rental usually less than 30 days will require a special policy from an insurance company that will accept short term tenants

If you are a real estate investor the best insurance broker for real estate investors is FM Agency Group because we can offer you one policy for all your properties or customize an insurance policy for each investment property