While much of the conversations around property insurance in Southeast Louisiana have been very doom and gloom, I’d like to shine some light on some hopeful trends we are seeing with property rates. After my 20 years specializing in property insurance, I have certainly seen many ups and downs when it comes to insurance rates.
Whether you are insuring your home or commercial properties, the trend from mid-2024 to the present has been positive. The majority of markets have held steady on rates or have come down which is fantastic news, and we anticipate this trend will continue this year.
So, what can you do if you haven’t seen a rate reduction, or worse, if your insurance premium has gone up?
Make sure your insurance agent has ALL the necessary details regarding updates done to your property.
This may seem like a no-brainer, especially if your agent has been writing your insurance for years, but you’d be surprised how many times we are able to reduce clients’ premiums by adding additional pertinent underwriting information. This could be letting them know you updated your HVAC, or replaced plumbing. Particularly we have noticed that the year the wiring was updated (in older structures) is just as important as the roof year. The more details you can provide, the better.
Make sure your insurance agent is shopping all the markets at their disposal.
This is another one that seems obvious, but sometimes it’s good to ask what other markets were quoted to make sure they have covered all the bases. Make sure that they give you multiple options from different insurance companies, not just the incumbent insurance company. You’d be surprised how many times trying a new market has worked out in our client’s favor.
Make sure you disclose your loss history.
The biggest reason we see insurance rates not decreasing is when there are open claims. Open claims tend to scare off insurance companies, especially if they suspect repairs are not completed. Make sure if you have an open claim, that you paint a very detailed picture for your agent to present to other markets to alleviate the underwriters’ concerns. Show them that you have taken the extra step to mitigate a loss from happening again, show receipts and proof of completed repairs, etc.
What else can you do to help improve your insurance premiums?
In the homeowners arena, we have seen some reduction in rates for clients who obtain wind mitigation surveys. A wind mitigation survey looks at construction features of your home, and documents those features. For example a hip roof vs. gable roof, concrete vs. frame construction, shutters and opening protections, roof-to-wall attachments — all these factors can influence the rate you are being charged on your commercial and personal property insurance. Now, these surveys aren’t 100% guaranteed to reduce your premium, so check with your insurance agent first to see if obtaining one could help. The cost is a few hundred dollars but can potentially translate into years of savings.
My best advice to those in the current insurance marketplace is to find an agent you trust, and make sure they are working for you. Make sure they are covering all the bases and testing new markets to see if there are potential rate savings with other markets
Melissa Bennett Simeon, CISR, is the founder and CEO of Bennett Simeon Insurance, one of the only woman-owned, independent insurance agencies in Louisiana. She may be reached via email at melissa@simeonins.com.
