Builders risk insurance for Real Estate Investors

When real estate investors buy distressed properties or homes that are in need of a renovation a standard landlord dwelling policy will not cover any claims on a vacant home under renovations

When a property is vacant you need to buy a renovation buildersrisk policy or a vacant home insurance policy

Our new Renovation insurance property insurance program will provide the coverage Real Estate investors need for

  • Vacant properties up for sale
  • Short term renovation fix and flip properties
  • Buy and hold properties in need of a few months of renovations before the tenant moves in

 

VACANT PROPERTIES UP FOR SALE

When a property is vacant and unoccupied on a regular insurance policy future claims could be denied

Water damage from busted pipes is common claim denial when a property is vacant

Theft or vandalism would be excluded as well

Make sure you purchase a Vacant policy to get coverage and you can buy our policy on a month to month billing so you only buy the coverage 30 days at a time

 

SHORT TERM RENOVATION FIX AND FLIP

If you are buying a property to renovate and put it back up on the market you need to purchase a renovation policy that also covers the property when the project is complete and up for sale

 

BUY AND HOLD TENANT OCCUPIED PROPERTIES

Our program will allow you to endorse or change the policy from vacant to renovation to occupied on one insurance policy so you don’t have to purchase a few policies during a renovation project

 

OUR NEW RENTAL ADVANTAGE PROGRAM INCLUDES

Homes that may not be accepted into a standard insurance program such as

  • Flat Roof
  • Aluminum wiring pigtailed
  • Fuses
  • Vacant
  • Window units
  • Bars on windows
  • Asbestos siding
  • No prior insurance

One policy for all types of properties for Real Estate investors

 

Baton Rouge new homebuyers: Coverage you need when buying a home

When buying a new home in Baton Rouge your number one goal is to make sure claims within the first year will be covered

  • Busted water pipes
  • Theft or vandalism
  • Under slab sewer line collapse
  • A/C unit shutdown
  • Roof replacement
  • Payment to replace personal property

A Baton Rouge homeowners insurance policy is not a home warranty policy so you don’t want to make any maintenance damage claims after you buy the house

You want to use your home insurance policy for financially devastating events that you can’t recover from or have the money in your bank to pay

You want to choose an insurance deductible that reflects the amount of money you have access to in your savings account to pay for damage

If you buy a house and only have $500 in your savings account a $2500 plumbing repair is going to hurt you financially but if you have access to $10,000 you don’t want to select a $500 homeowners insurance deductible

When you transfer more of the risk to you instead of all of the risk to the insurance company you pay less for Baton Rouge homeowners insurance

Here are coverage options you need when buying a home in Baton Rouge

  • Roof replacement coverage
  • Personal property replacement cost
  • Sewer backup
  • Service line replacement
  • Personal injury (Libel or Slander)
  • Equipment breakdown (A/C unit mechanical breakdown)
  • Extended Replacement Cost when cost of building materials increase

Not all home insurance policies are the same because an average home insurance policy needs 2 to 5 additional coverage options to make sure future claims are covered

Without an endorsed homeowners insurance policy you may be buying a weak insurance policy that will leave you paying out of pocket for future claims after you buy a house

If you are buying a new home in Baton Rouge and need help with selecting the right insurance coverage for a new home purchase click on the button below to get started

You can request home insurance quotes to your email and when you are ready and have questions you can reach out to FM Agency Group and speak to a coverage advisor to help you find the right policy for your new home purchase 

If you want to get started request your homeowners insurance proposals delivered to your email click here

Do you have enough insurance in New Orleans to rebuild your home?

The rising cost of lumber prices has been well documented this year

When the cost of lumber goes up in New Orleans, the cost to rebuild your home increases

If you don’t have enough insurance to rebuild your home after a devastating loss you could be left going into your bank account to pay a contractor to rebuild

 

WHAT CAN YOU DO TO MAKE SURE THIS DOESN’T HAPPEN?

Every New Orleans homeowners insurance policy has an inflation guard endorsement from 1% to usually 4%

Every renewal the insurance company will automatically raise the insured values on the policy up to the %

This is to keep your policy up to date with the rising cost of materials to rebuild

But sometimes if your home insurance policy was not properly reviewed you could be under insured and exposed to a large financial loss

An insurance broker can only use a guide or rule of thumb to determine the replacement cost of your home

An insurance company will have a replacement cost estimator but once again this is a guide

Only a residential homebuilder or contractor will know the cost to rebuild your home using the cost of materials today

 

RULE OF THUMB

If you don’t know a contractor or homebuilder use the price per square foot to determine the insured replacement cost on your homeowners insurance policy

Just a few years ago $100 a square foot was a bottom used on most policies but now you could be closer to $150 a square foot to rebuild

example) 2500 square foot home x $150 = $375,000 cost to rebuild 

Each home is used with different materials so it is best to either have a contractor give you an estimate or just ask him for an average price per square foot using today’s cost of lumber and materials

 

ANNUAL HOME INSURANCE RENEWAL REVIEWS

When is a good time to review your replacement cost of your home?

At each annual renewal is a good time to review the current replacement cost of your home

Over the past year lumber prices have soared due to strong demand and tight supply

Lumber prices were three times higher in September 2020 compared to September 2019

The cost of a 2×4 has gone up 158% and studs have risen 164%

When this happens the cost to rebuild a home increases and maybe your home was insured properly a few years ago it may now be under insured

 

If you need to review the reconstruction cost of your home and your current homeowners insurance policy with a better insurance broker

give us a call 504.348.3131 or complete the quick form below

 

2 ways to get more money after a roof claim

Missing shingles after a strong hurricane along the Gulf Coast does not always result in the insurance company opening up their checkbook and giving you a new roof as some of us have discovered

We had a customer missing over 60 shingles and the claim rep for the homeowners insurance company was thinking repair over roof replacement

We had to get involved on that claim and help the inside company claim representative understand the roof was beyond repair

After helping customers process hundreds of claims there have been a few common questions or issues that have come up

 

YOUR FIRST CLAIM CHECK IS PROBABLY NOT YOUR LAST

Just because the insurance company sends you a check and an estimate that is probably not the end of your claim

Most estimates will have a line item for recoverable depreciation

This is most common on a roof claim

Most insurance companies will issue you a first check that has a deduction for depreciation (age of your roof) although you have a replacement cost policy not an actual cash value policy

You must replace your roof and provide a paid invoice to collect the remaining recoverable depreciation

These two checks should equal the cost to you to replace your roof

Recoverable depreciation is available to you but you must submit proof of roof replacement to get it

The insurance company is not going to mail you recoverable depreciation unless it is requested

ROOF REPLACEMENT DISCOUNT

Once you replace your roof you are now eligible for a new roof discount usually up to 10% off your current rate

But once again the insurance company is not going to give you this discount unless you request it

If new customers can get a new roof discount existing customers should too

If you have a new roof and have pictures and a paid invoice you should be eligible for a nice discount off your current rate

If you are currently working with an insurance broker they should request this discount for you

If you have not received recoverable depreciation and your new roof discount on your current home insurance policy you may eligible to get more money owed to you from your insurance company

10 ways to lower your New Orleans homeowners insurance rate

Did your homeowners insurance renewal renewal go up?

Discover tips to lower your homeowners insurance rate

According to the Insurance Information Institute, the cost of homeowners insurance has increased significantly over the past several years, mainly due to the rising number of hurricanes, the high cost of home repairs, and the emergence of mold claims.

When you are looking at your insurance renewal,

It’s a good idea to contact your the best insurance broker 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 10 ways to help control the cost of New Orleans homeowners 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 Homeowners insurance renewal rate.  

Combine your home and auto policies

Many companies offer discounts if you buy your homeowners and auto insurance policies from them. It’s also more convenient than buying separate policies from separate insurance companies.

The only problem in ​New Orleans your options are limited finding any insurance company that still writes auto and homeowners insurance together.

The majority of homeowners insurance companies writing new policies only offer homeowners insurance but they do offer companion discounts just for having your other policies with the same agency such as auto, homeowners, flood and an umbrella protection policy.

Ask about other discounts

Make sure you get every discount you’re eligible for. There are generally discounts available for monitored burglar and fire alarm systems, hip shaped roof instead of gable shape, brick construction instead of frame and if you’re over 55 and retired, you may qualify for an additional discount.

Each insurance company offers their own individual discounts so discounts will vary.

Don’t buy more coverage than you need

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 personal property is 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 homeowners 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.

Understand your coverage

Make sure you understand your policy and exactly what is and what isn’t covered. You don’t want any expensive surprises down the road. For example, flood and earthquake damage aren’t covered by a standard policy – you’ll need separate coverage. And keep in mind, your home must be insured for replacement cost, not market value

Market value is the price of homes that have been sold recently.  This number rises and falls with the real estate market and has nothing to do with the cost to hire a contractor to rebuild your home

If everything were covered under a homeowners policy, you would only receive a receipt and a handshake. The policy you receive in the mail is filled with pages of exclusions or what the insurance will not cover.

Not sure what is covered?  

Ask your insurance broker to explain or if you have a “what if” question.  

Don’t wait until after a claim to discover a claim denial.

Keep your coverage updated

Review your policy and the value of your personal property once a year, before your New Orleans homeowners insurance policy is due for renewal.

Make sure your coverage is still appropriate for your needs and situation.

Things change since the inception of your policy and most common is not telling your insurance agent of any changes.

Did you buy a dog?

Did you get a trampoline for Christmas?

Did you decide to get a swimming pool?

These changes are important to a homeowners policy. Some insurance companies will exclude policy coverage and most homeowners policy either exclude animal liability or limit the coverage but you have to endorse the policy to get the protection you need if your family pet is having a bad day and decides to bite someone.

Make your home a better risk

Consider steps you can take to make your home less expensive to insure.

Are there upgrades you made to your house?

Most insurance policies will provide policy discounts for upgrades to your

  • roof
  • heating air conditioning
  • electrical
  • plumbing

Avoid “red flag” risks

Be careful when you buy a new dog or finally install the swimming pool.

There is a prohibited breed of dog list.  If you own one of these, your policy will not provide you any legal defense if there is a dog bite claim and most policies don’t provide any animal liability unless you endorse the policy.

If you do decide to get a pool be careful not to get a diving board or slide.

Most companies will not extend any liability for claims involving a diving board or slide

Boost your credit score

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

Equifax, TransUnion and Experian endorse the website and it is the official site for consumers to obtain their credit report once a year. You can request a copy of your credit report for free once a year https://www.annualcreditreport.com

Look beyond price

Don’t compare price alone. Consider each company’s customer service, locality and customer reviews. You want a home insurance partner who will be there for you if and when disaster strikes.

Request your homeowners insurance renewal review using the quick form below

Dog bite insurance and your New Orleans homeowners policy

Lose your dog or lose your homeowners insurance is not always the best option for your family

When you work the best insurance broker they are able to find an insurance company that will help you

You may have a dog that you believe “would never bite someone” but the facts show dog bite claims are very costly to the insurance industry

The average settlement from a dog bite claim was $43,653 in 2019

With medical costs on the rise and a growing litigious environment,

you are more than likely going to be sued if your pet bites someone or causes an injury because they chased or scared someone and an injury was sustained

Your dog doesn’t have to actually bite someone for a claim to be filed against you

Just an alleged incident can cost you

 

Not all New Orleans homeowners insurance policies cover dog bite liability

and if you have one of the breed of dogs on the prohibited list

more than likely you are on your own defending any alleged dog bite claim by a neighbor, friend or family member (not living in household) and paying out of your savings account

 

Here is a list of prohibited breed of dogs from one of our insurance companies we represent (list can vary with each company)

  • Akitas
  • American Bulldogs
  • Beaucerons
  • Caucasian Mountain Dogs
  • Chow Chow
  • Doberman Pinschers
  • German Shepherds
  • Great Danes
  • Pit Bulls
  • Rottweilers
  • Staffordshire Terriers
  • Wolf Hybrids

 

If your family pet is listed above, it does not indicate your dog is vicious and likely will attack someone but is more likely to be involved in an animal liability claim

 

What to do if you own a dog on the list above?

 

Well “get rid of it” is the simple answer,

but for most family pets,

a dog can be like another family member.

 

1. First thing to do is contact your insurance broker and ask if owning your breed of dog will exclude all coverage under you New Orleans homeowners insurance policy

It may have been an exclusion to coverage when you initiated the policy and either the agent didn’t ask or you didn’t disclose the breed of dog or you brought home your dog after the policy was sold and didn’t notify your agent.

Either way the entire policy may be voided so ask if there is an issue with policy coverage.

 

2. Find a homeowners policy that will allow your breed of dog

If you have a prohibited breed of dog, it is possible some insurance companies will allow you to keep your home insurance policy, but will not extend liability to any claim involving an alleged dog bite or attack.

 

A simple email to your agent and ask if there is a coverage issue only takes a few seconds

What if my homeowners insurance company is going to cancel my policy because of a dog bite claim?

 

It happens

An unexpected or alleged claim against your dog

There is nothing you could have done

Most homeowners companies will cancel you after a dog bite claim or surcharge your insurance rate at renewal

 

If you are being canceled, your options are limited

The liability claim is now on your record and most insurance companies pull a CLUE report

Insurance companies share your claim history and when you apply for a new homeowners policy,

the new home insurance company can view your claim history usually up to 7 years

So before you attempt to not disclose your dog bite liability claim to the new insurance company,

save yourself some time and just ask if the homeowners insurance company will accept the application with a dog bite claim.

 

What to do if every company has declined to write a new homeowners insurance policy because of your claims history?

 

Good News

We have an insurance company that will consider your application for dog bite insurance coverage with a dog bite claim on your record

All applications are subject to underwriting approval

The insurance company will write the policy but you will not get any animal or dog bite liability insurance coverage

 

But the insurance quote will be expensive and more than my current policy?

 

Not so

We are seeing on some insurance quote proposals a lower premium than your existing policy that is being canceled

 

What’s this all about?

After you received a notice of cancellation on your homeowners policy and you decided you don’t want to get rid of your dog,

you now have an option

Complete our quick form or contact us to discuss your claim history so we can determine if we can help you get dog bite insurance in New Orleans you need without having to get rid of your dog

 

 

5 Tips to lower your Laplace homeowners insurance rate

If you own a home in Laplace and you are looking for ways to lower your expenses including your homeowners insurance rate here are a few ways to accomplish lower rates

I put together a few things you can do to save hundreds off of your quote.

 

RAISE YOUR DEDUCTIBLE

When you raise your deductible (the amount deducted from a claim check) your insurance rate goes down

You want to raise your deductible to a level of affordability

If you only have $1,000 in your checking account,

you don’t want to take a $5,000 deductible

Your next claim would be a financially devastating event.

But if you have never made any claims other than weather related,

you need to begin to consider transfer of risk

You want to transfer more of the risk to you and away from the insurance company by considering a higher All Other Perils deductible (not hurricane or named storm)

When you take a low deductible, you are telling the insurance company to take on more of the insurance responsibility if you make a claim

When you do that, the insurance company charges you more on your Laplace homeowners insurance

 

BUNDLE YOUR AUTO, HOME, UMBRELLA AND FLOOD WITH ONE INSURANCE BROKER

When you work with the best Laplace insurance broker you get access to more discounts and more A rated insurance companies so you can lower your insurance expenses

Bundle your auto, home, umbrella and flood with the same agency and you will get discounts on your

 

The majority of homeowners insurance companies do not write all lines of insurance

but they will give discounts if all of the lines of business are with the same insurance broker

I talk to many customers who have their flood with one agent

Their auto insurance somewhere else

and their homeowners insurance with they purchased through some insurance broker their real estate agent recommended and they have no idea who their agent is or where they are located

 

IMPROVE YOUR HOME SECURITY

Two discounts available are monitored fire alarm and monitored burglar alarm.

There is a race to the bottom with pricing right now for security systems

The standard at one time was $40-$50/month for monitoring services

Today monitoring alarm companies are cutting prices against their competition and you are going to benefit

If you have not priced a new security system,

now is the time

No more landline needed

Some Laplace home insurance companies will offer large discounts for monitored security systems (up to $300 annually)

But don’t just do it for the discounts.

Protecting your family and your house with a monitored security system in Laplace is  just a responsible thing to do

 

ADJUST YOUR PERSONAL PROPERTY CONTENTS COVERAGE

 

For many years, homeowners insurance companies would provide you 50% of the home insured value for your personal property

It was packaged and there was nothing you could do

If you had a 400,000 house,

you would get $200,000 of contents coverage

Regardless if you could only prove you had $75,000 of property 

you had to take $200,000 of contents coverage,

but would only be paid for $75,000

 

 

Now you can adjust your contents coverage to the actual replacement value of your property

Determine the replacement cost of your property inside your house

Specialty items like jewelry, guns and collectibles have limitations so don’t include these items in the total value of your contents

You would need a personal articles scheduled stand alone policy

 

ADJUST THE INSURED VALUE TO THE REPLACEMENT COST

 

Due to the inflation guard endorsement on a homeowners policy,

the endorsement could make your insured value increase considerably if you have been with the same insurance company for a long time.

The inflation guard endorsement will automatically increase your insured value usually 1-3% every renewal in an attempt to keep up with the actual replacement cost to rebuild your house

A quick rule of thumb is to take $125-$165 x total square feet of your house to get an estimate of the cost to rebuild your house

$100 x 2465 square feet = $246,500 estimated replacement cost

This is just a quick guide to help you get an idea if your home is under or over insured.

A licensed home builder will give you a more accurate picture of the cost to rebuild your house.

 

What’s this all about?

Lowering your insured value on your home insurance policy to a point of under insuring your property is not a smart idea because you need enough money on the claim check to rebuild your house

When you are ready to work with Laplace homeowners insurance broker that can help you lower your insurance expenses and give you the protection you need complete the form below

 

 

Did you have a 5% hurricane deductible on your New Orleans homeowners insurance policy?

For many homeowners in New Orleans after the recent hurricane Zeta they discovered damage to their roof and they called their agent to make a claim

To their surprise they were explained what is a 5% Hurricane deductible

It is 5% of the insured value or the amount the home is insured for

example) 300,000 house with a 5% Hurricane deductible is a $15,000 deduction on the claim check

For most New Orleans homeowners a roof replacement is less than $15,000 so basically you are insuring your roof out of your own pocket

The problem recently is not all homeowners were aware they had a 5% hurricane deductible on their homeowners insurance policy

Some insurance companies just changed the Hurricane deductible from 2% to 5% on the renewal policy

GET A LOWER HURRICANE DEDUCTIBLE

After the recent hurricane(s) that struck the Gulf Coast, insurance companies are going to raise rates and the days of Hurricane deductibles as low as 1000 may be behind us

At this time you can still purchase a lower Hurricane deductible

Most large insurance companies that spend their time and money on commercials offer a 5% Hurricane deductible on New Orleans homeowners insurance policies

If you have been with one of these companies for a long time you most probably have a large Hurricane deductible

 

FIND THE BEST NEW ORLEANS HOMEOWENRS INSURANCE BROKER

The benefits of working with an insurance broker

 

🙂You get a claims advocate to work with you on claims resolution

 

🙂Access to more than one insurance company to find the right choice

 

🙂Your insurance broker provides professional advice in your best interest

 

🙂You get a renewal review each year to decide if your current company is still the best option

 

🙂Licensed advisor that explains insurance policy language in easy to understand terms

 

🙂An insurance broker works for you not the insurance company

 

🙂The insurance company pays the broker a commission not you

At FM Agency Group we can help you find a lower home insurance deductible and discover a lower rate on your home insurance without losing any important coverages

Complete the form below to get started

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