Where can I find the best homeowners insurance?

Finding the best homeowners insurance in New Orleans has never been easy.

Companies enter the insurance market with low rates only to follow up their renewal with a rate increase.

Some home owners feel like they have to shop their homeowners insurance every year to maintain an affordable home insurance rate.

The good news is we have more homeowners insurance companies wanting to write home insurance in South Louisiana today than we did before Hurricane Katrina.

 

Home insurance companies in Louisiana determine their rates based on your zip code

If you live in Kenner, La 70065 you will pay a different rate than if you live in New Orleans, La 70124 and you have the same exact house

with the same underwriting factors that affect the rate such as

  • Year built
  • Type of roof
  • Construction type
  • Credit Score
  • Claim history
  • Replacement Cost
  • Discounts such as monitored burglar and fire alarm
  • Year of updates to plumbing, roof, electrical and heating air conditioning

 

So what can I do to find the best homeowners insurance company? 

 

1.  Ask your friends, family or neighbors about their homeowners insurance.

If you know, like and trust someone is usually the greatest referral or source of information you can get.  

The best information is after they have had a claim

Insurance can be at a great rate but if the claim process is bad the policy is not worth the price you paid

 

2.  Find a Local Independent Insurance Agent in your community.

Independent Agents usually represent more than one company and know who is the most competitive in your zip code.

They should not have an allegiance to any one company so they should be able to provide you with an unbiased opinion and best option for you.

Multiple companies are now writing complete policies that include wind in South Louisiana

 

3.  Determine the length of time the insurance company has been writing in your area.

A recent trend when new companies start writing in New Orleans is they offer low introductory rates only to follow up the renewal with a rate increase.

Their thinking is to gobble up market share and start raising rates and just hope you don’t notice the rate increases.  

It is important you go with a company that has stabilized their rates and are not subject to large rate swings when you make no claims.

A good rule of thumb is at least 3 years writing new policies in your zip code

 

4.  Battle Tested during recent claim events.

Most homeowners want the lowest premium and the best coverage but one thing you may not think of is the company’s claim paying ability.

Low rates will prove very frustrating when the company can’t respond to your claim or have difficulty writing checks when you need them.  

If you have found the lowest rate on homeowners insurance, ask if the company has been through a hurricane or hail storm.  

If not, you probably have no idea if the company will still be around if another Katrina type event happens again.

 

Finding the best home insurance in New Orleans is possible if you just do a little homework on your end and don’t jump on the lowest quote proposal.

There are so many endorsements on a homeowners policy that can alter the rate you pay that you really may not be certain you are getting exactly what you want or need.

When I review a customer’s existing homeowners policy and explain to them what is not covered because the previous agent either left off a few endorsements or purposely reduced coverage to get the premium down, is when you can begin to understand what you are actually getting when you purchase a home insurance policy.

Homeowners insurance policies are not maintenance or home warranty policies.

Insurance policies are designed to protect you during claim events you could not recover from financially on your own.

 

Financially devastating events are…..

Can you afford to rebuild your house after a fire?

Probably not.

Get a homeowners insurance policy.

 

Can you afford to rebuild your house after a flood?

Probably not.

Get a Flood Insurance policy.

 

Can you afford to replace all of your contents after a theft?

Maybe.

Get your contents covered for the value of your property you have inside your house.

 

What’s this all about?

 

Finding the best home insurance policy in New Orleans is not about the cheapest price or lowest quote proposal.

You need to understand what is covered and what is not covered and make sure you are getting what you need to properly protect yourself in the event of a claim.

Buying the cheapest car on the lot may help your checking account but if it breaks down on the interstate, the savings will disappear once your roll it into the service department.

My name is Tim D’Angelo and I would like the opportunity to talk to you about your New Orleans area homeowners insurance.

You can call me at 504.348.3131 or complete the home quick form below to get started.

how to lower a mortgage without a refinance

5 WAYS TO LOWER YOUR MORTGAGE WITHOUT A REFINANCE

Question: What are the ways to lower a mortgage without a refinance?

  • Recast or Reamortization
  • Request to remove PMI
  • Ask to recalculate your escrow
  • Review your Homeowners Insurance again

 

When you refinance in most cases you add years to your mortgage and you pay fees in thousands and at closing you probably pay 1% of the loan amount as the origination fee.

Before you consider a refinance or if you tried and didn’t qualify…here are some other options to try first

🏘️RECAST OR REAMORTIZATION

No mortgage lender will advertise this as an option to you because they don’t make much money

With low interest rates right now the money is in the refinance for them

But a Recast or Reamortization is an option that may be available to you

It allows you to lower your monthly payment and pay less interest over the life of the loan

How does a Recast work?

You offer to pay a minimum payment usually starting at $5,000

The remaining balance is then amortized or “Recast” the monthly payments

There is a fee for a Recast but it is minimal compared to a refinance and can be as low as $150

A Recast is not available from all lenders so you need to call and ask your lender if they offer a Recast

💡Tip: A recast does not shorten the length of your mortgage but it also does not extend the length like a refinance

 

Benefit of a Recast?

New principal balance is recalculated

Reduced principal balance equals lower interest

🏘️ASK TO REMOVE PMI

If you have less than 20% equity in your home or didn’t make at least a 20% down payment on your home purchase, you are paying PMI or private mortgage insurance

To meet the 20% equity threshold for your lender to consider removing PMI there are few things you can do

Get a new appraisal on your home if you believe the value of your home has increased

Did you increase the value of your home?

Added a room?

Did a kitchen remodel?

A new swimming pool?

Did the home values in your neighborhood increase?

Your home is now worth more than when you purchased it

Use the Loan to Value Formula to see if you can remove PMI

Divide the loan balance (amount you owe now) by the original appraised value (purchase price?)

ex) You owe $175,000 on a house that cost you $220,000 

$175,000/$220,000=.79

79% so you are under 80% it is time to request to cancel PMI

🏘️ASK YOUR LENDER TO RECALCULATE YOUR ESCROW

You can call your lender and ask for an escrow analysis

When to ask for this?

Property taxes have decreased

Home Insurance rates have gone down

You no longer have Flood insurance escrowed because you are now in a preferred flood zone X


💡Lower rates on Home insurance is the fastest way to lower your mortgage payment at no cost to you


The two best times to review your Home Insurance?

Escrow analysis

Home Insurance renewal

With over 25 home insurance companies writing new policies in South Louisiana now is the time to get a lower rate

Credit and Non Credit Home Insurance rates are available

🏘️Reasons to get a new home insurance quote?

You have been with the same company over 3 years

When you purchased your home the lender or real estate agent recommended you to their insurance referral partner

You have not reviewed your home insurance since you purchased your policy 

💰💰BONUS💰💰

When your home insurance is escrowed and you find a lower rate on home insurance

Your lender will perform a new escrow analysis based on the lower annual home insurance rate which will result in a lower monthly payment

You get a refund in the mail when you cancel your home insurance policy before the expiration date

💔WE HELP YOU BREAK UP WITH YOUR CURRENT INSURANCE COMPANY💔

Breaking up is hard to do

It can be awkward that is why we do all the work for you

We obtain the necessary paperwork so we can get you a refund sent directly to YOU not your mortgage company

We make it easy for you

When you do I will review your insurance protection and let you know if we can help you within minutes

Talk to you soon 

Agent Tim 504.348.3131

FM Agency Group has been helping homeowners since 2001 with their home insurance protection

How much does Metairie Home Insurance Cost?

How much does Metairie home insurance cost?

Metairie Home Insurance can vary based on underwriting factors that are not limited to

  • Your credit score
  • The age of the house
  • Brick or Frame construction
  • Year of roof replacement
  • Gable or Hip shape roof

There are many underwriting factors that go into a home insurance premium. 

Throughout the years we have helped many residents with their home insurance needs all over the state of Louisiana.

The cost of home insurance can vary not only from parish to parish but from neighbor to neighbor

 

Here is a house in Metairie Zip Code 70005

It is a brick house with a hip roof built in 1978.

Replacement Cost 240,000

Hurricane Deductible 1% – 2%

All Other Peril Deductible 1,000 – 2500

*Average Premium $1200 to $2800

*homeowners insurance rates in Metairie could be lower based on, but not limited to, underwriting factors, home features, credit worthiness and claims history.

 

Homeowners insurance rates are usually based on many underwriting factors but not limited to credit worthiness, age of house, construction materials, roof shape, security features and claims history up to five years.

 

If you are searching for a new home purchase in Metairie

here are some house features you could look for that could reduce the home insurance premium.

 

Hip Roof Shape

– a roof where all sides slope downwards to the walls or gutters.

Brick House

-brick homes are less expensive than frame home insurance quotes

Year Built

-newer homes receive more premium credit than older ones

Monitored Burglar and Fire Alarm

-Premium credit for having both monitored

Renovated Property

-Electrical, Plumbing, Roof and Heating A/C

 

If you need a quote on new purchase in Metairie or have an existing Metairie home insurance renewal that you would like us to review

give us a call at 504.348.3131 or complete or quick form

 

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YOUR HOME POLICY IS WEAK

HOME INSURANCE FOR RENTAL PROPERTY

 

Your home insurance policy is weak

5 Home insurance endorsements you need but probably don’t have

There is a way to Hurricane proof your home insurance policy in South Louisiana

A standard home insurance policy is not enough here

You need to add some inexpensive coverage options to get your policy ready for Hurricane season 

We often recommend these 5 home insurance policy enhancements to our customers

Here are the 5 enhancements your policy probably does not have 

 

Service Line Endorsement ($30)

This replaces any piping or wiring the provides electrical power, heating, natural gas and waste disposal 

Why this is important?

It is the coverage that is added to pay for the replacement of piping

A standard policy excludes the replacement of the piping due to corrosion and tree root intrusion

Coverage that would have been excluded is now covered for Wear and Tear, Rust or Corrosion, Collapse, Tree root intrusion and Freeze

ex)  the sewer pipe running under your slab collapses due to age and wear and tear (standard exclusion)

Your policy would pay for the resulting damage the collapsed pipe caused but replacement for the pipe is out of your pocket

With this endorsement you get paid to replace the sewer line pipe under your house

Coverage includes $10,000 for damage and subject to a $500 deductible

 

Refrigerated Property ($10)

Loss of power to your property that is out of your control

ex) a car hits a telephone pole up the street and you lose power (normal Power Failure exclusion)

You will get $500 of covered property in your freezers or refrigerators on the residence premises (your house)

Also mechanical failure is also covered (normal exclusion)

Deductible of $100 applies

This coverage is great during a Hurricane Evacuation and when you return home all your contents in your freezer and refrigerator are spoiled

 

Hurricane Evacuation Reimbursement ($50)

Little know fact is when you evacuate for a hurricane and you return home and there is no damage

you don’t get loss of use or reimbursement 

You must have damage to your home for loss of use to kick in

This endorsement will provide $1000 to $1500 of reimbursement due to a mandatory evacuation

Damage to your home is not required to get reimbursed

 

Equipment Breakdown ($30)

This removes the Artificially Generated Electrical or Power Failure current exclusion

Lightning is covered under a home insurance policy but off premises power failure is not

If you can’t prove lightning destroyed your a/c unit or electronics you will not get coverage unless you have the Equipment Breakdown endorsement

The mechanical or electronic breakdown of equipment is covered here

Pro Tip:  Wear and Tear of your a/c unit or appliances is not covered under a home insurance policy or under this endorsement

here is an interactive Equipment Breakdown explanation

 

Why I like this coverage?

You buy the coverage to give you the greatest chance of a claim check being issued to you

The home insurance policy is over 100 pages and most of it is what is not covered

When you have the opportunity to buy some coverage back for about 8 cents a day….I recommend you buy it

 

Extended Replacement Cost ($180)

This provides an additional 25% of replacement cost to your policy

ex) your home is protected for 200,000 and with this endorsement the insurance company will pay an additional $50,000 (25%) if the cost to rebuild your home is over 200,000

Just about everyone except a residential home builder has no idea what it costs to rebuild a home

This number fluctuates and has nothing to do the value of the home or current real estate values

This is the cost of hiring a contractor to buy building materials and hire labor to rebuild

 

Why this coverage is important?

Following a major claim event such as a tornado or hurricane the cost of building materials will go up

So if you believe your current home is valued at $130/sq ft to rebuild

following a hurricane the cost could skyrocket to $145/sq ft

ex) Before the hurricane you could have rebuilt your 2200 sq ft home at $130/sq ft for $286,000

but after a hurricane that almost wiped out your home the quote from the contractor to rebuild is $319,000

The 25% extra on the insured value of 286,000 will allow you an extra $71,000 to rebuild your home so you will not have to pay any money out of your own bank account to rebuild and the cost to get the extra coverage on your policy is 49 cents a day

 

What can you do?

You are able to pick and choose which of the above home insurance policy enhancements you want or you can build a better home insurance policy by buying all of them

If you want to review your current home insurance policy just complete the quick form to get started

 

Talk to you soon

Tim D’Angelo FM Agency Group

 

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3 WAYS TO LOWER YOUR RATE

Does your home insurance have mold insurance coverage?

MOLD COVERAGE HOME INSURANCE

Mold is often excluded under a home insurance policy because it is not sudden and accidental damage in the event of a claim,

but if the mold is the result of a claim it is possible it would be covered.

A recent endorsement is being added into most new Louisiana home insurance policies.

This endorsement is usually mandatory to the HO-3 home insurance policy here in Louisiana.  

Not all companies include this endorsement.

The endorsement is “Limited Fungi, Wet or Dry Rot, or Bacteria Coverage – Louisiana”

If this MOLD INSURANCE COVERAGE endorsement is on your home insurance policy,

it basically will limit the amount of Mold coverage available to you on your policy.

Limits are often 5,000 or 10,000.

We view these endorsements as providing limited coverage for “mold” as a result of a covered loss.

So it is “in addition to” your claim damages, you also have mold coverage.    

Making a stand alone Mold claim with no other cause of loss is going to be a difficult claims experience for any home owner.

 

Flood Insurance policies have a broader coverage for mold as a result of a flood loss.    

If you have discovered Mold, take photographs of the damage before you contact a licensed contractor to remove the bacteria.

Louisiana Contractors must be licensed for “Mold Removal” or “Mold Remediation”.

If you want to attempt to remove the Mold yourself,

the Louisiana Agricultural Center has a pdf for “Mold Removal Guidelines” that may be helpful.

 

If you are not sure if Mold is covered, check your homeowners insurance policy for a special endorsement that will reference “Fungi, Wet or Dry Rot or Bacteria”.

 

HERE ARE THE MOST COMMON AREAS TO DISCOVER MOLD IN YOUR HOUSE

  • Underneath kitchens and bathrooms sinks
  • Area around the refrigerator
  • Behind the walls where a plumbing leak is possible
  • Around air conditioning units
  • Drywall around windows
  • Under carpet or flooring that may have become wet

 

When you discover Mold in your home you need to remedy the situation as soon as possible.

It is possible you have a slow plumbing leak behind the walls.

Depending on the amount of mold in your house will determine if you need to get a mold remediation company to your house.

Mold Insurance coverage is very limited on a homeowners policy so don’t depend on your homeowners insurance company to take care of the damage.

If you want to learn more about mold, here is a website that may give you the information you need www.removemoldguide.com

 

If I raise my home insurance deductible how much can I save?

So how much can you save taking a higher deductible on your home insurance policy?

The term is transfer of risk

The insurance company does not want you to make small claims

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

Consider moving the risk from the insurance company to you

When you do this the insurance companies offers you a lower rate on insurance

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

Do you make home 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 about my hurricane or named storm deductible?

Over the past few years this deductible which was once as high as 5% of your insured replacement cost value

Due to many home insurance companies entering the Louisiana home insurance market 

the named storm and hurricane deductibles can be as low as 1,000

Consider the rate difference on a 1000 deductible and a 1% hurricane or named storm deductible

If there is a savings you may consider the higher deductible

I’m sure another Hurricane Katrina and this low deductible option will go away

If the insurance companies are offering a low hurricane deductible you may want to get it while it is still being offered

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 home insurance rate

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

not to keep you up at night.

My name is Tim D’Angelo and I can review your deductible savings strategy on home insurance

You can contact me at 504.348.3131 or complete the quick form

3 ways to lower your home insurance rates

3 Best ways to lower your Louisiana Home Insurance rate

Home insurance rates have been going down in Louisiana recently to the lack of Hurricane activity and the amount of home insurance companies that have entered the market driving rates lower so they can gain market share

When you are looking at your home insurance renewal,

It’s a good idea to contact your home insurance agent before you renew to make sure you know the cost of insurance and that you are well-informed of any issues or endorsements you may be missing.

A proper review of your policy is not just a smart thing to do, but it protects yourself from a financially devastating event.

 

Below are the 3 best ways to help control the cost of Louisiana home insurance so you keep more of your money instead of giving it away to the insurance company.

 

Raise your deductible

If you have a low deductible of $1000, raising it to $2500 or $5,000 could save you up to 25% on your Home insurance rate.  

You raise your deductible to the level you can afford

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

If a $2500 hit on your bank account after a claim is a financially devastating event,  you need a lower deductible

But if you have access to more than $2500 consider raising your deductible

Home insurance companies want you to take care of the small claims

They want you to assume some risk and use the home insurance policy for large losses

Too many small claims and your renewal is going up…up…up

home insurance rates going up

 

Don’t buy more coverage than you need

The new term is customized insurance coverage

Make sure you’re only buying the coverage you need.

It doesn’t make sense to pay for $100,000 of contents coverage if your belongings are only worth $25,000.

You can adjust your personal property or contents coverage to the value of the property you own.

This is the limit for the property you own and moved inside your house.

All home insurance policies have limitations on specialty items such as jewelry, guns, collectibles, art etc.  

Don’t assume everything is covered up the to full value and be careful “mysterious disappearance or lost it” are not automatically covered.

Consider scheduling any valuable items on the policy or purchase a stand alone personal articles policy to make sure your most valuable items are covered.

 

 

Boost your credit score

Insurance companies are increasingly using credit information to calculate insurance rates.

Limit your number of open credit accounts, don’t max out your credit cards, and pay your bills on time to keep your credit score healthy.

If you believe your credit score has gone up since you initially purchased your home insurance policy

consider getting quoted again

Higher credit score will get you a lower rate on home insurance

Get a free credit report once a year by clicking here.

Equifax, TransUnion and Experian endorse the above website and it is the official site for consumers to obtain their credit report once a year.

Complete the quick form to get started with a lower home insurance rate today

We can compare rate and coverage protection to make sure you are getting the best coverage and the lowest rate

 

List of Louisiana Home Insurance claim numbers

List of Louisiana Home Insurance claim numbers

No one wants or expects a tropical storm or hurricane to hit this year but some things you should do to get ahead of a claim event now

Make an Evacuation Plan before the Hurricane hits the Gulf of Mexico

1.  Get a copy of your policy sent to your email address or use an online cloud storage program to have your home insurance policy ready at your fingertips if you have to evacuate.  

If you don’t have your home insurance policy in a pdf,  ask your agent to email you one now

Most Home insurance companies now offer 24/7 online home insurance portals

Check your home insurance company and they may offer one to you so you can make a payment, file a claim or check policy status

 

2.  Document your

  • Home Insurance Company (not your agency)
  • Policy Number
  • Claim Number

Access Home Insurance 888.671.2442

Allstate Insurance Company 800.255.7828

Allied Trust Insurance 844.200.2842

Americas Insurance 800.742.3109

American National ANPAC 800.333.2860

Amica Home Insurance 800.242.6422

Anchor Insurance 844.365.5588

ASI Lloyds 866.214.5677

Bankers Insurance 800.765.9700

Capitol Preferred Insurance 888.388.2742

Centauri Specialty 866.215.7574

Chartis 888.760.9195

Chubb Group of Insurance Companies 800.252.4670

Dover Bay Insurance 800.782.8332

Gulf States Insurance 888.277.0575

Louisiana Citizens Insurance 877.815.5005

Encompass Insurance 800.588.7400

Family Security Insurance 888.993.3742

Farmers Insurance 800.435.7764

Federated National Insurance 800.293.2532

Fidelity National Flood (now Wright Flood) 800.725.9472

Fidelity National is now Stillwater Insurance Group

Fireman’s Fund Insurance Company 888.347.3428

Geovera Specialty 800.631.6478

Gulfstream Insurance 877.254.6819

Gulf States Insurance 888.277.0575

Hanover Insurance Group 800.628.0250

The Hartford 800.243.5860

Homesite 866.621.4823  (21st Century, Progressive)

Imperial Fire and Casualty 800.960.7777

Kemper 866.860.9348

Lexington Insurance Company 877.873.9972

Liberty Mutual 800.225.2467

Lighthouse Home Insurance 877.852.0606

Louisiana Farm Bureau 866.275.7322

Maison Homeowners Insurance 877.864.4934

Metlife 800.422.4272

National General Insurance 800.848.1777

North Light Specialty 866.430.0902

Occidental Fire and Casualty 800.780.8423

PURE 888.813.7873

The Republic Group 800.451.0286

Safeco Ins Co of America 800.332.3226

Shelter Insurance 800.743.5837

Southern Fidelity 866.874.7342

Scottsdale Insurance Company 800.423.7675

State Farm 800.782.8332

Travelers 800.252.4633

United Fire Group 800.343.9131

UPC Insurance 1.888.256.3378

USAA Homeowners Insurance 210.531.8722

If you don’t see your company listed here,  give your insurance agent a call or do a search. 

In the event of a hurricane,  some companies will set up claim centers in the surrounding area to help process claims faster and get Louisiana homeowners much needed resources during a difficult time.

What is a Louisiana Surplus Lines Insurance Company?

Did you receive a quote from a surplus lines home insurance company?

or do you currently have a surplus lines home insurance policy?

Here is some information on surplus lines insurance companies.

 

 

Surplus Lines Companies writing in Louisiana ARE NOT

  • licensed from the Louisiana Department of Insurance to write insurance in Louisiana
  • bound by rate and form regulations and are not strictly regulated to protect policyholders
  • protected by LIGA, the Louisiana Insurance Guarantee Fund
  • financially obligated to contribute to LIGA

 

Although a Surplus Lines Home Insurance Company is not licensed by the State of Louisiana, it is allowed to do business in Louisiana.

Surplus Lines Homeowners Insurance Companies are often referred to as non-admitted insurance companies.

 

What Risk is involved moving my Home Insurance to a Surplus Lines Company?

 

>If your insurance is with an admitted insurance company, your house is protected up to 500,000 with the Louisiana Insurance Guarantee Fund in case of insolvency.

>Subject to large rate increases at renewal

Since Surplus Lines insurance companies do not need approval to raise rates, you could receive a large rate increase at renewal if the insurance company is trying to leave the area

You would have no rate protection and not guaranteed a renewal offer

example) 

A surplus lines insurance company is offering low rates when the wind is not blowing and you buy a home insurance policy

During your policy term a tornado, hail storm or hurricane hits your area and at renewal the insurance company decides it no longer wants to write business in your zip code

The surplus lines insurance company can raise rates to 1,000% or issue a non-renewal “No longer writing in this area” and you are left to try to find home insurance after a major claim event

After a major claim event insurance companies stop writing new business

When this happens you are left with the Louisiana Citizens Fair Plan 

 

If you place your home insurance with a Surplus Lines company,  you have no protection if the company becomes insolvent or decides to leave the state after a major claim event.

Surplus Lines Insurance Companies were created to give policyholders another option when admitted insurance companies would not write the policy.

To learn more about Excess and Surplus Lines Insurance, the American Association of Managing General Agents

click here AAMGA

To better understand Surplus Lines Insurance, James Donelon, Louisiana commissioner of insurance, issued this Bulletin NO.2013-06

The document states the “diligent efforts to place the insurance with admitted carriers”. 

It also has a copy of the surplus lines affidavit needed for signature

SURPLUS LINES AFFIDAVIT FORM 438

 

BENEFIT OF SURPLUS LINES INSURANCE COMPANY

The one major advantage is the company can more flexible when it comes to coverage and rate. If you are declined by every admitted insurance company, often a surplus lines insurance company will accept the risk.

Having a surplus lines insurance company write your homeowners policy does not indicate in any way the company can not pay their claims. 

You just need to consider the protection by LIGA if you are choosing between an admitted insurance company and a surplus lines policy.

If you have a surplus lines homeowners policy and would like a quote proposal with an admitted insurance company,

 

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

Majority of customers don’t select their own home insurance deductible on their home insurance policies.

Their insurance agent does.

When we meet with potential home 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 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 – 299,000 your deductible should be $2500

300,000 – 750,000 your deductible should be $5000

Just because your previous agent gave you a $1000 deductible does not indicate you should keep a $1000 deductible.

 

Some questions to ask yourself.

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 Independent Insurance Agent 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.