The biggest problem my family faced when moving to Mandeville, LA, was to find a house we could afford with an insurance policy that wouldn’t make us pay 2 “theoretical” mortgages. Why should anyone care so much about insurance beyond their own? I will give you a Greta style post, with points drawn from my addiction to news and talking to people in the area about current events & situations. I will not bore you with tons of links & research (go read other blogs for that), but my own 2 cents (fwiw).
1. In order to purchase a house, you need to have home insurance or the bank will say fahgetaboutit! kapeesh?
2. Houses in LA are zoned in either A, B or C (or sometimes X- haven’t figured that one out yet) risk categories.
3. Many companies refuse to write new home owner policies for the area.
4. Many companies are either canceling existing policies or jacking up the rates so high that nobody can afford them.
5. Many Parishes are “flagged” by insurance companies due to the amount of damage and claims in the area. This means they “if” they write you a policy, you will pay the man!
6. In order to live within your means, you must purchase a house that is insurable without breaking your personal bank.
Obvious conclusions that can be drawn from my little talking points are:
1. People will not move into the area if it is such a hassle.
2. When current homeowners have their policies canceled or jacked up through the roof – they will pick up & leave.
3. Homeowners will disappear & the only ones that will remain are those in the rental market. (theoretically).
4. Louisiana will miss out on potential good people, businesses, professionals etc… makes sense…right?
When we purchased our home in January, we really had no other reasonable choice, but to choose the Louisiana Citizens Fair Plan. 375 K house – just about 6K with the 300 federal flood insurance – ouch! This plan is good for one year and pending no additional disasters in the state, is only guesstimated to go up – 30 percent – ouch again. Then there is car insurance…we are shopping around right now as our costs have doubled from living in “tornado alley.” Yesterday, our local Allstate agent dropped by with a quote for car insurance. If we purchase car insurance from Allstate for 60 days, they will write us a home policy too. Something to consider for sure.
I am not a fan of Federal Government having their hands in local problems. I do think it is the state’s problem to fix, or should it be the feds? If this answer was cut & dry – this wouldn’t be such a huge nightmare. Talk to me and give me your 2 cents. Regardless, my family and I have planted our 10 feet plus paws here to stay!