Louisiana Department of Insurance announces some Acadia Parish residents to see drop in fire insurance rates
Commissioner of Insurance Jim Donelon says Acadia Parish homeowners in Fire District 10 (Church Point area) can expect significant rate reductions in their fire insurance premiums, effective August 6, 2012.
Donelon commended firefighters and local officials in Fire District 10 for the improvement of their fire protection grading from Class 6 to Class 5. This improvement 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 grading, which results in lower insurance rates on your homes and other property," Donelon said.
For example, fire insurance for a home valued at $150,000 was costing residents in Fire District 10 about $1,371 a year. That cost is likely to about now drop to about $1,306 under the new grading, saving homeowners about $65 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 protection grading is promulgated by the Property Insurance Association of Louisiana (PIAL) and approved by the Louisiana Insurance Commissioner. All fire districts are graded on a scale of 1 to 10 by PIAL, with 1 being the best.
Rankings may change any time PIAL resurveys a district, or they may remain the same. An upgrade (such as Class 6 to Class 4) will probably mean a drop in property insurance rates. PIAL conducts surveys of fire district's fire protection services before issuing a grading. Factors that affect an area's grading include the number and type of training of firefighters, the number of fire stations and fire trucks, and the availability of water.
If PIAL surveys a fire district and finds it is offering fewer services than before, they may "retrograde" the class, from a 4 to a 6, for example. When this happens, property insurance rates will probably go up. Policyholders in the affected area should contact their insurance producer if the expected reduction in fire insurance premiums is not reflected in their next renewal notice.