What is Non Standard Home Insurance in Louisiana?

A non standard home insurance or a non standard Landlord rental investment property insurance is when a property no longer qualifies for the preferred or standard insurance market

A property could have….

 

TOO MANY CLAIMS

In the first three years of a home insurance policy, if you make a non weather related claim, more than likely you be canceled

The claim will stay on your claim record for 3-5 years

 

BEING NON RENEWED

Too many claims will get you non-renewed

Water damage and fire claims more than likely will generate a non-renewal or a large rate increase

Some home insurance companies that are writing new policies now may not write any new business after the next hurricane

They can issue a non renewal and leave the area

 

VACANT OR UNOCCUPIED

You decided to move to another house or have gone on an extended vacation

Insurance companies will be quick to deny a claim if the property is supposed to occupied by the homeowner

Most policies have a vacancy clause from 30-90 days which depends on the insurance company

If the home is vacant they can deny a claim

You must purchase a vacant dwelling policy to get the proper coverage you need and prevent a claim denial

 

SEASONAL OR VACATION HOME

You only use the property a few weeks a year and do not lease to a tenant

You need a policy that is rated based on this type of use

If not, you could risk a claim denial

 

SHORT TERM RENTAL

With the popularity of Airbnb many property owners are using their properties where permitted to lease their units less than 3 months at a time

Your insurance company would need to know of your use because it is possible your current insurance company does not allow short term rental use

 

OLDER OR LOW VALUE UNDER 100,000

It is not uncommon for a property in New Orleans to built before 1900

Most insurance companies may only write properties built after 1950

A specialty home insurance company would have to offer the protection needed on an older home

 

OWNER HAS POOR CREDIT OR BANKRUPTCY

Most insurance companies will not offer insurance if the owner has filed for bankruptcy

Some insurance companies will write an owner with a bankruptcy but add a rate surcharge

If a homeowner has poor credit,¬† some insurance companies today will not use an owner’s credit score to rate the policy

 

HOMES UNDER CONSTRUCTION

An HO-3 homeowners policy is for a home that is not under construction and vacant

We now have an insurance company that will write a home being built from the ground up buildersrisk (not a renovation) under an HO-3 policy form and the policy just converts to a standard home insurance policy once occupied without having to write a new policy and you get liability included too to protect you against slip, trip or fall claims

If a home is under renovation, you would need a renovations policy usually sold in 3,6,9 or 12 month terms

If you live in Louisiana and need a specialty property insurance policy because the standard insurance market does not want to accept you, give us a call or complete the quick form