Commissioner of Insurance Jim Donelon said Monday that property owners in the Cade area served by the new station, which went into service in August, can expect significant reductions into their fire insurance premiums beginning in March.
Donelon commended the community and local officials for bringing the area’s fire protection rating from Class 7 to Class 6.
Fire districts are rated on a scale of 1 to 10, with 1 being the best.
“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,” he said.
Donelon said insurance on a $150,000 home that currently costs about $1,523 a year is likely to drop nearly $100 a year.
“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,” Donelon said.
Fire insurance premium rates are promulgated by the Property Insurance Association of Louisiana and approved by the Louisiana Insurance Rating Commission of the Department of Insurance.
The new $484,351 Cade Fire Station is situated on the south side of state Highway 182, Old Spanish Trail, and the parallel railroad tracks, a potential obstacle between the old fire station on the north side and the burgeoning industry along U.S. 90. The old fire station will remain in use.