Home Insurance Articles
By: Anthony M. Peck
Posted on: Apr 6, 2009 - 2:18:38 PM
Finding Cheap Homeowners Insurance in Louisiana
Hurricanes Katrina and Rita are making it hard, but hard doesn't have to mean impossible! Here's what you need to know about keeping your Louisiana homeowners insurance affordable without leaving your home wide open to the next act of God that comes to rain on your parade.
So what's a Louisiana homeowner to do?
The good news is that you aren't going to have to resign yourself to a never ending diet of pasta and water for the privilege of living on the gulf coast. (Although with the way prices are rising even that might not be a cheap solution for too much longer!) With the help of the U.S. government and the insurance price cutting wars raging across the country there just might be hope for homeowners after all-no matter what line your insurance agent tries to feed you.
1) First and foremost, understand that flood insurance probably isn't going to be a part of your standard homeowners insurance policy. If you're living on the Gulf of Mexico the chances of your home getting up close and personal with the local marine life at some point or another are almost ridiculously high, and since many parts of Louisiana are prime targets for hurricanes most insurance companies won't touch flood coverage with a ten foot pole. It's almost a given that you're going to have to work with the government to obtain coverage through the National Flood Insurance Program.
2) Take advantage of the number of homeowners insurance providers currently doing business in the U.S. and play the pricing game. Your rates might never be as low as, say, western New York, but there's no harm in name dropping (with some dollars and cents thrown in) to see if another company will step up to match their competitor's prices. Hey, when it comes to homeowners insurance haggling is the name of the game.
3) DISCOUNTS DISCOUNTS DISCOUNTS! If you're a conscientious homeowner who's:
a) taken measures to keep their foundation above flood level
b) installed burglar proof locks on your front door (instead of the ten dollar department store specials that most people use to save money)
c) purchased a fire extinguisher, and
d) made your roof and windows as wind and hail proof as possible
you're in a prime position to enjoy discounts of 20% or more on your homeowners insurance. And when you're living in a state where the average homeowners insurance policy costs close to $1,300 a year (or more-not surprisingly, statistics are a little vague when it comes to the cost of homeowners insurance in Louisiana) 20% or more can make a BIG difference in the amount of milk money you have left over.
4) How much do you want to insure your house for-really? Remember, you're not paying replacement costs on your land (unless you're a farmer, which is another story altogether) so just looking at your mortgage isn't going to tell you how much it's going to cost to rebuild your house. You're going to have to decide how much your home and possessions are really worth, whether you want to use cash value or replacement value for your insurance company's payoff if your home comes crashing down around your ears and how high you can afford to make your deductibles.
Mother Nature definitely ruined Louisiana for homeowners in terms of keeping homeowners insurance affordable. Even her best efforts can't squash the fact that bargain hunting is practically an American pastime, and the huge number of resources today's homeowners have at their disposal is making it possible for them to protect both their home and their bank account without giving up the high quality coverage they need living in the heart of America's bayous.