Homeowners in the Paradis area can expect significant rate reductions in their fire insurance premiums, effective May 7, according to Commissioner of Insurance Jim Donelon.
Donelon commended firefighters and local officials in Fire District 6 (Paradis area) for the improvement of their fire protection grading from Class 4 to Class 3. The improvement will bring fire insurance rate reductions for many policyholders.
For example, fire insurance for a home valued at $150,000 was costing residents in Fire District 6 about $1,409 a year. That cost is likely to drop to about $1,285 under the new grading, saving homeowners about $124 in annual premiums.
“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. “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.”
Fire protection grading is promulgated by the Property Insurance Association of Louisiana and approved by the Louisiana Insurance Commissioner. All fire districts are graded on a scale of 1 to 10, with 1 being the best.
PIAL conducts surveys of a 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.
Be the first to comment