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Homeowner’s Insurance Premiums vs. PIAL Ratings
  Louisiana Department of Insurance
Homeowner’s Insurance Premiums
Versus
Property Insurance Association of Louisiana (PIAL) Protection Ratings
St. Tammany Fire Protection District No. 1 contacted the Louisiana Department of Insurance to work with our fire district to perform an analysis regarding the affect of protection rating established by the Property Association of Louisiana (PIAL) on homeowner’s insurance premiums specifically within Wards 8 and 9 of St. Tammany Parish. The study also includes the city limits of Slidell.
The study focused on a home insured for $150,000, of brick/masonry construction, with a $500 deductible and 2% Hurricane Deductible.
The protection ratings that are referred to in the study are established by the PIAL. The PIAL evaluates an area based on water supply/availability, fire department mission preparedness, and emergency communications. Once the rating is fixed, it becomes the basis for insurance companies to develop their premiums for homeowner’s insurance coverage. Individual insurance companies rely on the protection ratings to a greater extent than do others; therefore, the values in the study conducted by the Louisiana Department of Insurance (LDI) are based on averages.
Some elected officials and residents argue that millages should be cut, even to the extent of the discontinuance of services and the closing of fire stations. Their position is that such measures will save citizens money. A review of the study information gathered by the LDI may provide more data for making an informed decision on this issue.
The results of this study are independent of St. Tammany Fire District No. 1. The numbers are simply the mathematical results of the information generated when considering our current PIAL protection ratings in light of the average cost of homeowner’s insurance for a $150,000 home in our fire district as calculated by the LDI.
The attachment has summary information on the effects of PIAL Rating changes for both Territory A and Territory B. |
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