New Orleans, LA – According to the Insurance Information Institute (I.I.I.) homeowners insurance rates are expected to rise by 2.5 percent in 2005, the smallest increase in six years.

The estimated increase portrays an ongoing cessation from 2004 when homeowners insurance cost rose a calculated 3.8 percent. The I.I.I. projects the average cost for homeowners insurance will increase $17 from 2004. And, even though cost of owning a home in America is drastically on the rise, the moderation in home insurance could not have been more time efficient.

Much of the cost of homeowners insurance reflects where one lives geographically. Because of several billion dollar disasters in 2003, including Hurricane Isabel, insured natural disaster losses grossed almost $13 billion--the third highest year on record.

According to Don Beery, vice president of Eustis Insurance & Benefits and former president of the Independent Insurance Agents and Brokers of Louisiana, there are significant steps that homeowners can take to protect themselves.

"With the current homeowners insurance market the way it is, right now is a great time to make sure that consumers are affordably protecting themselves and their homes," says Beery. Beery offers the following tips to help ensure consumers are making the most of their policy.

Monitor your claim activity. Be conscious and cautious and consult your agent when filing smaller claims. Insurance companies track how many and what type of claims you file. Frequent claim activity, no matter how small, can be grounds for non-renewal. If your claim exceeds your deductible by $200 or less, consider withholding the claim and paying for the loss out of your own pocket. The out-of-pocket expense to pay the loss will probably be less than the premium increase you likely will pay later if you file a claim. It also keeps your claim record clean and allows you to stay insured for major or catastrophic losses.

Stick with one insurance company and the company may be more likely to stick with you. An insurance company is more inclined to overlook a blemish on your claims record if you are a longterm customer rather than a new one. Annually hopping from one insurance company to another makes it difficult to build a relationship with any company.

Bundle your home with other coverages. Keeping your homeowners and auto policies with one company makes you a more attractive customer. An insurance company may think twice about dropping your home coverage if it may mean losing your auto business, too. That bond can be further strengthened by having a personal umbrella policy-coverage that protects you from rare but potentially catastrophic liability claims and lawsuits. Umbrella policies are a bargain from a coverage and account stability standpoint, costing as little as $150 per year. Furthermore, maintaining multiple policies with one company often can lead to significant discounts.

Home improvements help. Your home’s wiring, plumbing, heating and roofing should be in good repair at all times. At least twice a year, walk through your home and inspect it for developing problems. Older houses with antiquated systems should be modernized immediately. Your insurance company has the right to inspect your property. It can require repairs for continuity of coverage or decide against renewing coverage on a house considered hazardous. These fixes initially may seem costly, but can be dangerous and ultimately more expensive if ignored.

Buyer beware. If you are shopping for a new home, learn about the house’s claim history before you buy it. Ask for a disclosure report, which can be obtained from your real estate agent or the seller’s agent. Insurance companies will be wary of a home with previous multiple structural or water-damage claims. It can work against you, even if you were not the owner of the home at the time.

While Beery admits there are no guarantees to avoid a rate increase or being non-renewed by an insurance company, by heeding these precautions consumers can make themselves a more valuable policyholder and more attractive to their insurance company.


Eustis Insurance & Benefits, a member of the Independent Insurance Agents and Brokers of America and the Council of Insurance Agents and Brokers, is one of the area’s largest independent insurance agencies. Founded in 1946, Eustis Insurance & Benefits has offices in New Orleans, Mandeville, Baton Rouge and Houston.

Editor’s Note: Don Beery is readily available for interviews, please contact Ellen Brewer at 522-3911 to schedule an interview.


Eustis Insurance, a member of the Independent Insurance Agents of America, is one of the area's largest independent insurance agencies. Founded in 1946, Eustis Insurance has offices in both New Orleans and Mandeville.