Donelon commended the community and local officials in Mamou for the improvement of their protection ratings from Class Four to Class Three. 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 rating, 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 has been costing residents in Mamou about $1,319 a year. That cost is likely to drop to about $1,201 under the new rating, saving homeowners about $117 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 insurance premium rates for fire protection districts are promulgated by the Property Insurance Association of Louisiana (PIAL) and approved by the Louisiana Insurance Rating Commission of the Department of Insurance. Fire districts are rated on a scale of one to 10 by PIAL, with one being the best. Rankings may change any time PIAL resurveys a district or they may remain the same. An upgrade (such as Class Six to Class Four) will probably mean a drop in insurance rates.
PIAL conducts surveys of fire district’s fire protection services before issuing a rating. Factors that affect an area’s rating include the number and type of training of firefighters, the number of fire stations and fire trucks and the availability of water.
Policy holders in the affected area should contact their insurance provider/agent if the expected reduction in fire insurance premiums is not reflected in their next renewal notice.