Here are the most common homeowners insurance coverages removed by insurance agents and mortgage brokers so you can get the cheapest quote

In this article are explained coverage add on endorsements you need because after you buy a house you don’t want to pay out of your pocket on your next claim

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

REPLACEMENT COST CONTENTS

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

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

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

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

You want Replacement Cost on Contents or personal property

ROOF REPLACEMENT COVERAGE

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

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

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

WATER BACK UP

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

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

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

SERVICE LINE PROTECTION

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

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

HOME SYSTEMS PROTECTION

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

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

If you are buying a new home in Louisiana and want to get a home insurance protection proposal from the top three companies in the zip code just click here to get started

HOME INSURANCE FOR NEW CONSTRUCTION

If the Residential home builder told you their policy will protect you when building a new home you may want to ask a few questions

If you don’t own the land or the home until the project is complete you are ok

The residential home builder is responsible for the home until they hand you the keys at closing

But if you own the land and want to build a new home and searching for a custom home builder

You are going to need a special home insurance policy not a builders risk policy to get the protection you need

HOME CONSTRUCTION INSURANCE

A standard home insurance policy will not cover any claims when a home is vacant and under construction

Only a few home insurance companies in Louisiana will offer a special endorsement or add on that will give you the coverage you need from start to finish

One policy is all you need but you need to make sure you have the right policy

Learn more about Home Insurance for New Construction click here

What is the difference between a home insurance policy and a new construction home insurance policy?

The New Construction home insurance policy has special endorsements that protect you and the home

Theft of Building Materials is not a normal coverage on a standard home insurance policy but when your home is under construction the policy includes this important coverage option

If a home is vacant over 60 days with no electricity a regular home insurance policy could exclude all coverage but with the under construction policy this risk is acceptable

You may qualify for our new Home Under Construction Insurance program

You may qualify if 

• You intend to hire a licensed and insured contractor to build or renovate your home
• You complete the project in 12 months
• You intend to occupy the home once the project is complete
• The insurance policy is for you not the contractor

If you would like to learn more about the NHCP for new home construction projects

click here

The formosan termite in New Orleans can cause major damage to your home but is it a covered claim?

My house in New Orleans was recently attacked by a swarm of termites.

A few even found their way under my door and were flying around before I went to bed.

Yes one of the first phone calls I made when I moved in was a termite inspection contract.

I know New Orleans residents are under attack every year and there is nothing we can do about it.

Swarming season in New Orleans is April to July.

Termites have been labeled the silent destroyer of homes in our area.

When you discover termite damage, it may be too late.

Before you even consider making a homeowners claim,  

you should be able to recognize a few common signs you have termite damage

FLOOR DAMAGE

Termites can damage laminate flooring and baseboards.

If you think your floor feels spongy or soft,  take a look underneath.

WALL DAMAGE

Cracks or tracks in your sheetrock is a sure sign you have termite damage.

Termites love cellulose found in wood within walls.

CEILING DAMAGE

Wooden support beams and rafters in the attic are at risk.

Look for tracks or cracks in your ceiling and take a look in your attic.

SLAB OR FOUNDATION

Although your slab is concrete, they can get in between the slab and your wooden floor joists.  

Homes built on piers with a crawlspace are at a greater risk because there is no concrete slab barrier.

WINDOW FRAMES

If your windows are sticking or no longer open, 

the termites may have tunneled underneath are eating away at the window frames.

ROOF DAMAGE

Broken roof tiles hold moisture and attract termites to the wood decking underneath.  

Replace any damaged or water-soaked roofing tiles.

If I discover I have termite damage should I make a New Orleans Homeowners insurance claim?

The fundamental principle of covered claims on a homeowners policy is simple.

When in doubt ask yourself one question.

“Was the damage sudden and accidental?”

If not, more than likely the claim would be denied.

Termite damage is not sudden and accidental.

Termites can destroy a house and cause major damage over an extended period of time.

Common Claims not covered on a home insurance policy.

• Termite Damage
• Wear and Tear 
• Maintenance

A homeowners insurance policy is not a home warranty policy.

What should you do?

If you have not already purchased a Termite contract from a local Pest Control company,

you should.

Most contracts with Pest Control companies will come out and treat your house for termites.

If they discover termites, you may be able to get them to repair the damage.

You need to read the contract for the conditions that apply to you.

If you don’t meet certain conditions, it may void the contract.

Most Pest Control companies will give you a free inspection so now is the time to start the process of protecting your house from the termite swarm

and don’t rely on your New Orleans Homeowners policy to respond to a termite damage claim.

Here are 3 Insurance hacks you can use now for car, homeowners and business insurance

Insurance companies have many ways and data points they use to generate a rate for you

I put together 3 things you can do now to lower your rate on car and homeowners insurance and if you are a business owner or have a friend, neighbor or family member that owns a business

CAR INSURANCE

One rating factor on car insurance is how many miles do you drive

Most insurance companies provide a discount for less than 12,000 miles

If your policy is rated on over 12,000 annual miles you can ask your agent to change the policy to less than 12,000 miles and see if it generates a refund

The rate savings may be minimal so here is another way to greater savings

SAVE UP TO 30%

Every company has a drive tracking program  

You get a discount to try up to 5% and you get an opportunity to save an additional 30% off your current rate

How does it work?

Most insurance companies now offer an app that will track the movement of your vehicle or you can get a plug in device

What do they track?

• Acceleration from a complete stop
• Hard braking
• Driving after 12 am
• Miles per day

That’s it

No an insurance company can’t track your speed because they don’t know if you are on an interstate or blowing through a school zone

No they don’t care where you are going

Tracking your daily routine has no underwriting value to an insurance company

Ask your agent or insurance company if they offer a telematics program and each insurance company gives the program a name

Progressive Snapshot

Safeco Right Track

National General SmartDrive

Liberty Mutual Right Track

State Farm Drive Safe and Save

Allstate Drivewise

USAA SafePilot

Geico DriveEasy

HOMEOWNERS INSURANCE

You are not locked into a homeowners insurance policy

You can get a re-rate at any time from your current agent

If you have not checked your home insurance in 3-5 years it may be time to request a rate review

Most insurance agents are willing to accommodate you

INSURANCE IN ESCROW

I like to call this a forced escrow refund and here is what you can do

Your escrow is based on the cost of insurance for homeowners and flood and your property tax bill

Each year the lender can do an escrow analysis to determine if you have enough or you have too much and they will issue a refund

The cost of insurance going up can cause an escrow shortage

At any time you can get your current homeowners insurance rate reviewed by an insurance agent

If rates have gone down since you purchased your house or your homeowners insurance you can purchase a new policy at a lower rate

The insurance agent would cancel your current home insurance policy that would generate a refund back to you not the mortgage company

The lender would receive an invoice for the new homeowners insurance policy at a lower rate causing a forced escrow re-evaluation

which would result in a lower monthly mortgage payment

This is fastest way to lower your monthly mortgage if you need relief now

BUSINESS INSURANCE

You need to understand that business insurance policies are rated on estimated annual payroll or estimated annual gross sales

If your business payroll and sales are greatly reduced here is what you can do

Ask your current agent or insurance company to change the policy to your lower estimated payroll or gross sales

This should lower your monthly bill

Not all insurance companies are willing to do this for you

If they refuse you can get another quote from an insurance company using the new adjusted figures and this should produce a lower rate

Most common rating factors on business policies

General Liability or Business Owners policy will use estimated gross sales

Workers Compensation will use estimated payroll

Don’t cancel your policy but consider a reduction in your estimated gross sales and payroll before you consider a cancel request

Most insurance companies will not accept you with no prior insurance or surcharge a rate for not having an active policy

Hope this helps during this time of need and if you need to reach out to me with any questions 504.348.3131

Tim D’Angelo owner of FM Agency Group

Other Related articles during this time

Are your covered under your car insurance policy if you deliver food or rideshare?

Can you get loss of business income due to a virus?

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