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Home Insurance Quote Rates Remain High Years After Katrina

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By : John Cutts    99 or more times read
Several years after Hurricane Katrina devastated New Orleans, Louisiana, home insurance quote rates remain at high levels, leaving a big number of homeowners in the state unable to secure coverage for their properties. According to industry observers, the current prices of property insurance policies are very high compared with the pre-Katrina period.

Although the insurance market of Louisiana is considered recovered from the impact of Katrina, prices are still skyrocketing, with most private firms deciding not to offer new policies. The number of companies operating in the state has also increased, but despite the tighter competition created by the increased number of companies offering insurance policies in Louisiana, coverage remains expensive and beyond the reach of regular homeowners.

Insurance agents have stated that State Insurance Commissioner Jim Donelon has done a great job in establishing programs that provided protection to consumers and resulted in unfreezing the market. However, agents also stated that the quality of insurance companies operating in Louisiana is not as good as during the period prior to the Katrina disaster. They added that most consumers do not have access to choices of policies that they really need.

Prevailing home insurance quote rates in Louisiana are largely influenced by the type of home being insured and the estimated value of the property. According to insurance industry analysts, difficulties in finding coverage can be attributed to most insurance firms unwilling to write policies for houses that are not built to the newest building codes.

Most companies are also reluctant to provide policies to homes that are valued lower than $150,000 since they believe that the premium amount they will get will not be worth the cost of managing and underwriting the policy. With companies lining up all these considerations, a big number of consumers are left with very little chance of acquiring reasonable and affordable coverage for their homes.

For one, majority of houses built in New Orleans and in other areas of the state after Katrina are worth $150,000 or less. For another, older homes have features that are not favored by insurance firms due to the risks associated with these fixtures during a storm or hurricane. According to insurance experts, home insurance quote rates are unlikely to go back to pre-Katrina levels.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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