New Orleans, LA - Realtor Michael Zarou recently sold a home on Chippewa Street for nearly $185,000.
The new owner took out a policy, paying $1,800 a year for homeowner's insurance.
"That's a pretty good rate I think," says Zarou. "But if you look nationwide, it's probably considered high for a house this size and at this price."
Zarou says the high rates often startle first time homeowners, but not enough to keep them out of the market.
He says that's because many companies are still writing new policies.
But one insurance provider is ending some of its business in Louisiana and eleven other states.
Farmers Insurance announced it would no longer write insurance through independent agents and existing policies won't be renewed.
State Insurance Commissioner Jim Donelon says the move affects 25,000 homeowner policy holders and another 5,000 with auto policies around the state.
"They're not exiting our state, the company that is, because a sister company Foremost that is what's called a direct writer will stay on their homeowner's book and their auto insurance policies as well," says Donelon.
He calls it a business decision, not a rejection of Louisiana.
And Donelon is not worried about Farmers cutting some policies because, he says, other companies have shown interest in taking over the business.
Donelon's message to everyone with a homeowner's policy, shop around.
"There are a dozen companies that are in our state actively competing with each other for that business," he says.
Zarou says that's how his buyers found the best rate.
"They are writing it now with Louisiana Fair Plan," he says. "It will be a primary residence for the buyer and so they got an insurance company to write it and it's $1,800."
