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

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

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

 

How to get plumbing insurance in New Orleans for a new home purchase

When you buy a new home in New Orleans one major concern is the plumbing because water damage is one of the most common insurance claims on a homeowners insurance policy

Some common water damage claims after you buy a home

  • A busted water heater damages your flooring
  • The toilet or clothes washer will no longer drain
  • Busted pipe inside a wall damages a room

There are few things you can do to protect your bank account after you buy a new home from a water damage claim

 

SERVICE LINE UTILITY INSURANCE 

This coverage can be added to a homeowners insurance policy or a rental property insurance policy for as low as $5 a month

This will cover the replacement of the underground plumbing line that sends water to and from your home

When this pipe collapses water can no longer flow in and out of your home

Toilets don’t work

Showers don’t drain

Washing clothes will no longer be an option

 

What will Service Line Insurance Coverage actually cover?

Standard exclusions of coverage under a homeowners insurance policy don’t apply

You can get coverage for the cause of damage below

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

YOU GET REPLACEMENT COVERAGE FOR THE ITEMS BELOW

  • 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 in New Orleans with our new Homeowners Insurance program and we include the coverage on all our policies if available from the insurance company

WHAT HAPPENS IF YOU DON’T BUY THIS COVERAGE?

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

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 on Service line insurance coverage?

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

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 homeowners insurance and landlord rental property insurance 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

 

PLUMBING INSURANCE FOR A NEW HOME PURCHASE IN NEW ORLEANS

You can buy a plumbing protection plan from Homeserve as an added protection after you buy a home or even ask the seller the buy one year of coverage as low as $20 a month if you have any concerns about the plumbing in the house

Homeserve will cover 

  • Locating the blockage or collapse
  • Excavation to expose pipe
  • Pipe replacement or repair
  • Repair or replacement of seals and joints
  • Unblocking
  • Fitting external valves
  • Fusing
  • Welding
  • Pipe cutting
  • Backfilling of areas disturbed by repairs
  • Leaking supply pipe to hot water heater
  • Repair/replace burst interior water pipe
  • Unblocking an overflowing toilet or sink due to clogged drains
  • Leaking wax seal
  • Blocked drain

Home Warranty plans will focus on appliances and heating a/c systems and their plans can cost about $50 a month

Homeserve will offer many options to choose from if you have more concerns than plumbing but a stand alone plumbing protection plan for $20 a month may be something to consider for your new home purchase

WHAT YOU CAN DO TO PROTECT YOUR HOME FROM PLUMBING ISSUES

  • Make sure your homeowners insurance policy has the service line endorsement
  • Buy the Plumbing and Drainage coverage plan from Homeserve

At FM Agency Group we are the best New Orleans insurance broker to help you get the coverage you need to protect what you have

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 New Orleans that offer this important and inexpensive protection