St. Charles residents to see drop in fire insurance rates

St. Charles residents to see drop in fire insurance rates

ST. CHARLES PARISH, LA (WVUE) - Some residents in St. Charles parish will soon see a significant drop in their fire insurance premiums.  Commissioner of Insurance Jim Donelon says homeowners in Fire District 5 (St. Rose area) will start seeing their rates decline beginning on October 10, 2016.

The drop in premiums is a result of an improved fire protection grading for Fire District 5, which went for a Class 4 to Class 3. "Through diligent work and cooperation, increased protection of homes, businesses and families from fires is possible. Improved fire protection ratings are a testament to the hard work of fire departments and community leaders and we all reap the benefits in the form of improved safety, peace of mind, and lower premiums for fire insurance due to decreased risk," Donelon said.

Fire insurance for a home valued at $150,000 was costing residents in Fire District 5 about $1,409 a year. That cost is likely to about now drop to about $1,285 under the new grading, saving homeowners about $124 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.

Fire protection grading is promulgated by the Property Insurance Association of Louisiana (PIAL) and approved by the Louisiana Insurance Commissioner. All fire districts are graded on a scale of 1 to 10 by PIAL, with 10 representing no fire protection and 1 being the best.

A variety of factors are considered in determining a district's grading. The number of dispatchers on duty, the number of firefighters and fire trucks, and the availability of water all affect a district's grading.

fPolicyholders in the affected area should contact their insurance producer if the expected reduction in fire insurance premiums is not reflected in their next renewal notice.

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