EP residents to see drop in fire insurance rates
BATON ROUGE - Commissioner of Insurance Jim Donelon said Evangeline Parish homeowners in Ville Platte and Fire District Two (outside corporate limits of Ville Platte, including Chataignier, Belaire Cove and Faubourg) can expect significant rate reductions in their fire insurance premiums, effective July 7.
Donelon commended the community and local officials in Ville Platte for the improvement of their protection rating from Class Four to Class Three and those in Fire District Two for their improvement from Class Six to Class five. These improvements will bring about insurance rate reductions for many policyholders.
“Your efforts to make your property safer have brought about the lowering of your fire protection rating, which results in lower insurance rates on your homes and other property,” Donelon said.
For example, fire insurance for a home valued at $80,000 has been costing residents in Ville Platte about $766 a year. That cost is likely to drop to about $703 under the new rating, saving homeowners about $64 in annual premiums. Fire insurance for a similar home in Fire District Two was costing homeowners about $870 a year. Their cost is likely to drop to about $819 a year, saving about $51 in annual premiums.
“The amount of the premium rate reduction will vary, depending on the value of the property, the fire district where the property is located and the rate schedule of the company insuring the property,” said Donelon.
Fire insurance premium rates for fire protection districts are promulgated by the Property Insurance Association of Louisiana (PIAL) and approved by the Louisiana Insurance Rating Commission of the Department of Insurance. Fire districts are rated on a scale of one to 10 by PIAL, with one being the best.
Policyholders in the affected areas should contact their insurance producer/agent if the expected reduction in fire insurance premiums is not reflected in their next renewal notice.