Louisiana Home Insurance Rate Factors

At Insurance Shield, we know that the price of premiums is a huge factor for most people when it comes to selecting your home insurance policy. One of the most common questions we get is how can our clients save on their policy? We strive to provide our valued customers with the best rates available year in and year out, and here are a few factors that go into consideration regarding home insurance policy rates.

Location: Location, location, location. It’s probably one of the reasons you purchased the house you did. We all know that location is a huge factor in almost everything and your homeowner’s insurance premium is no different. Rates vary drastically throughout the state of Louisiana and one of the biggest determining factors is location. Homes found within areas more prone to natural disaster damage can almost always expect to pay higher rates than those in “safer locations”. For Louisiana that equates to areas closer to the Gulf of Mexico and within the boundaries of the levees.

Crime Rates: This one can be associated with location, but typically, the higher the area crime rate, the higher the insurance premiums. Neighborhoods where break-ins and robberies are common means there is a higher chance that insurance companies are going to have higher rates of claims and payouts. When insurance companies have fewer payouts, they can charge lesser premiums. Also, some companies offer discounts for proactive customers who install things like home security systems.

Fire Protection: Your proximity to a fire station and fire hydrants can make a difference on your premium. The lower your area’s fire rating (which takes into account fire department response time, ability to adequately transport and move water, proximity to fire hydrants and more) is a factor in determining your cost of coverage.

Claims History: The more amount of homeowner’s insurance claims you have a history of, the higher you can expect your rate to be. Most underwriters make a correlation between previous claims and the likelihood of additional claims to be made in the future. And this is a history that follows you, regardless of whether or not you are looking to insure a new home or find a new policy on a home you’ve previously filed a claim on.

Credit Score: While your credit score will not define your ability to get homeowners coverage, it can affect how much you will pay for it. Payment history, outstanding debt, credit history length, the pursuit of new credit, and credit mix can all be considered when calculating your premium amount.

Condition of the Home: Many things about the actual structure of your home can directly affect your premium price. The age of the home, the building materials used, and the cost to rebuild the home are all factors that are considered. Typically, older homes are more expensive to cover than their new counterparts due to the more costly repairs because of specific building materials as well as the condition of key components such as the plumbing and electrical wiring.

Deductibles: Deductibles are the amount of money you have to pay towards a loss/claim before your insurance company steps in to pay. As a rule of thumb, you can expect that the lower your deductible, the higher your premium will be. Higher deductibles can reduce your overall premium cost by upwards of 25 percent.

These are just a few of the many factors that are taken into account when calculating your Louisiana homeowners insurance policy. We would love the opportunity to sit down with you and provide you with a custom policy and a premium that works for you! Contact us today and see what makes us different!