LawHelp State Frequently Asked Questions

LawHelp.Org/LA is Administered by Southeast Louisiana Legal Services

LawHelp/LA Home Page > Consumer Issues > Insurance & Other Consumer/Finance

Smaller Text

Insuring Your Home: Your Fair Housing Rights

by: Greater New Orleans Fair Housing Action Center, Inc. (FHAC)

Why do I need to insure my home?

Anyone who buys a home and has it financed will be required to seek homeowner's insurance, and possibly flood insurance. Insurance is an important part of owning a home. You need to be protected in case anything happens to your house or possessions. Also, the bank or mortgage company that lends you the money to buy the house will insist on insurance, to protect their own investment. Homeowner's and flood insurance can seem complicated, but if you know what to look for you can find a good policy. Learn the terms and language in a policy and shop around for the best coverage available.

What should I know when I buy homeowner's insurance?

You do not have to be an expert to get good coverage, but there are some things you should know.

Although there are many differences in policies, there are 2 basic kinds of coverage:

Replacement Value- this insures your home or possessions for the cost of rebuilding the home or buying new things; and
Actual Cash Value- this insures your home for the price at which it would sell. If you have an older home, the actual cash value is not enough to replace it. If something happens to one of your possessions, the insurance company will only pay for a used one of equal value.

A good way to think about the difference is to imagine you have a serious kitchen fire. A replacement policy will rebuild your kitchen and replace the damaged appliances with brand new ones. An actual cash value policy might not even give you enough money to rebuild your kitchen, let alone pay to replace your appliances.

A replacement value policy may cost more, but it is worth more if you have to make a claim. You should be able to choose which kind of policy you buy. Unfortunately, one way that insurance companies discriminate against certain people or certain neighborhoods is by offering only actual cash value policies instead of replacement coverage.

It is against the law to be denied homeowner's insurance, or be charged more, or offered less coverage, because of your race, color, religion, national origin, sex, disability, or family status.

What is the best way to buy homeowner's insurance?

Don't rely on someone else to get insurance for you. There are too many choices to make. You should call several different companies to get information before you decide which policy to buy. Ask the following questions:

How much is the deductible? You need to know the size of the deductible (how much you will have to pay out of your own pocket each time you have a claim). The higher the deductible, the lower the cost of your policy.
How much does the policy cost? This should depend on whether the policy is a replacement or actual cash value policy, the size of the deductible, and what extras the policy has.
What does the coverage include? Actual cash or replacement value? How much coverage is there for your personal possessions? Are there any extras? Are there any exclusions in coverage?

Be prepared to tell the insurance company the following information:

Where the house is located.
The type of construction (such as brick or wood frame).
When the house was built.
How much the house is worth.
How close the house is to a fire station.

Each time you talk with an insurance company, write down the date and time of your call, who you spoke to, what you were asked, and what you were told. If no one returns your calls, write that down too.

What could be discrimination?

One way insurance companies avoid doing business with certain people, or people living in certain neighborhoods, is not to return their calls. Another way insurance companies discriminate is to charge some people more for their insurance. Sometimes the reason for this is not discrimination (for example, if one property carries a higher risk than another). But insurance companies make some assumptions that may not be true. They assume that some neighborhoods carry a higher risk than others. They may find all kinds of ways to keep from selling insurance in certain neighborhoods. For example, they may:

Cancel the policy the 1st time you make a claim, or just not renew it.
Refuse to give you replacement coverage.
Charge so much that you won't buy their insurance.
Refuse to give you a quote without inspecting the property.
Refuse to insure certain kinds of houses that are only found in certain neighborhoods (for example, flat roofs).
Refuse to insure houses worth less than certain amounts.
Say your house is too old to insure, even if it is in good condition.
Run a credit check before issuing a policy.
Tell you they don't insure houses in YOUR neighborhood and refer you to another company.

Unfortunately, housing discrimination is sometimes found in the insurance business, especially if you live in certain neighborhoods. The biggest problems are cancellations, non-renewals, and differences in the cost and quality of coverage. Many agents and companies today are fair and don't discriminate. But if you have any doubts or questions about a policy you now own or want to buy, call the Greater New Orleans Fair Housing Action Center (GNOFHAC) at 504-596-2100 or toll free at 877-445-2100. GNOFHAC will investigate the problem.

Insurance discrimination destroys neighborhoods. By reporting discrimination you can help create a healthy, livable neighborhood. By reporting discrimination you help stop a practice that is not only illegal, but that hurts all of us - as individuals, as a community, and as a nation.


	Search

	Tips on Searching

Live Chat by LivePerson

Find Legal Help On Insurance & Other Consumer/Finance

Related Resources

Check Clearing Law (Separate Website)
By: Federal Reserve Bank

Attorney General's Consumer Protection Section (Separate Website)
By: State of Louisiana

Guía del Consumidor y Mas (Separate Website)
By: Centro Federal de Información para el Público de la Administración de Servicios Generales de los EE. UU.

more...

	Last Reviewed On: 10/31/11

Información en Español sigue el Inglés.

Click to hear a sound recording of this information.

Information Not Legal Advice. This web site has been prepared for general information purposes only. The information on this web site is not legal advice. Legal advice depends on the specific facts of each situation. Some information in this web site may not be correct for where you are. The information in this web site is not guaranteed to be up-to-date. The information in this web site cannot replace the advice of competent legal counsel licensed in your state.

Lawyer Advertising. In some jurisdictions this web site may be considered lawyer advertising. The hiring of a lawyer is an important decision that should not be based solely upon advertisements.

Any listing of an attorney does not constitute a recommendation of the attorney. Before hiring any attorney, you should investigate the attorney's reputation and qualifications.

Links. This web site contains links to other resources on the Internet. Those links are provided as citations and aids to help you identify and locate other Internet resources that may be of interest, and are not intended to state or imply that we sponsor or are affiliated or associated with the persons or entities who created such sites, nor are the links intended to state or imply that we are legally authorized to use any trade name, registered trademark, logo, legal or official seal, or copyrighted symbol that may be reflected in the links.

E-mail. Viewing this Web site, or transmitting an e-mail message through this Web site, does not create an attorney-client relationship. Sending e-mail to an attorney mentioned in this site does NOT create an attorney-client relationship between you and the attorney. Unless you are already a client of the attorney, your e-mail may NOT be protected by the attorney-client privilege. Moreover, unless it is encrypted, e-mail can be intercepted by persons other than the recipient. Deadlines are extremely important in most legal matters. You may lose important legal rights if you do not hire an attorney immediately to advise you. Many people do not check their e-mail daily, and some attorneys do not respond to unsolicited e-mail from non-clients.

Information, Not Legal Advice.

Esto es solamente información, no es consejo legal.

This web site has been prepared for general information purposes only. The information on this web site is not legal advice. Legal advice depends on the specific facts of each situation. Some information in this web site may not be correct for where you are. The information in this web site is not guaranteed to be up-to-date. The information in this web site cannot replace the advice of competent legal counsel licensed in your state.

Este sitio del Internet fue preparado para dar solamente información. La información en este sitio no es consejo legal. Consejo legal depende de los datos específicos y las circunstancias de cada situación. Es posible que alguna información en este sitio no comporte con el área o la jurisdicción donde usted vive. Es posible que la información en este sitio no esté corriente. La información en este sitio no puede sustituir el consejo de un abogado competente y licenciado en su estado.

Lawyer Advertising. In some jurisdictions this web site may be considered lawyer advertising. The hiring of a lawyer is an important decision that should not be based solely upon advertisements.

Propaganda de Abogados. En algunas jurisdicciones, este sitio puede ser considerado propaganda de abogados. Contratar con un abogado es una decisión importante que no debe depender solamente sobre anuncios.

Any listing of an attorney does not constitute a recommendation of the attorney. Before hiring any attorney, you should investigate the attorney's reputation and qualifications.

Información sobre un abogado no es una recomendación del abogado. Antes de contratar con un abogado, usted debe investigar la reputación y las capacidades del abogado.

Links. This web site contains links to other resources on the Internet. Those links are provided as citations and aids to help you identify and locate other Internet resources that may be of interest, and are not intended to state or imply that we sponsor or are affiliated or associated with the persons or entities who created such site, nor are the links intended to state or imply that we are legally authorized to use any trade name, registered trademark, logo, legal or official seal, or copyrighted symbol that may be reflected in the links.

Conexiones. Este sitio tiene conexiones a otros recursos del Internet. El sitio ofrece estos conexiones para ayudarle identificar y localizar otros recursos del Internet que pueden ser beneficiosos. Estas conexiones no declaran o insinúan que nosotros patrocinamos o que estamos asociados con las personas o entidades que han creado cualquier otro sitio. Los conexiones no declaran o insinúan que nosotros podemos legalmente usar cada nombre de comercios, marca registrada, logotipo, sello legal, o símbolo de los derechos reservados de autor que estén reflejados en las conexiones.

Correo Electrónico. Si usted mira este sitio, o si usted envía un mensaje de correo electrónico por este sitio, esta acción no crea un relación entre abogado y cliente. Usted no tiene relación entre abogado y cliente si usted envía correo electrónico a un abogado que el sitio mencionado. Si usted no es un cliente del abogado, es posible que su correo electrónico a este abogado no tendrá protección del privilegio entre abogados y clientes. Si su correo electrónico no tiene clave secreta electrónica, es posible que su correo electrónico pueda ser interceptado por otras personas que no son el recipiente.

Fechas topes son muy importantes en la mayoría del los asuntos legales. Usted puede perder derechos importantes si usted no contrata con un abogado inmediatamente quien le pueda dar consejo legal. Muchas personas no miran el correo electrónico cada día, y algunos abogados no responden a correo electrónico que no es solicitado de las personas que no son clientes.

Make LawHelp better! Click here to take our survey.

Learn how to use this site: click here to hear and see a slide show. En Espanol: oprima aqui.

Are you trying to handle a legal problem on your own, without a lawyer? Use this survey to tell us what resources would help you most.

Advocates, librarians, social service agency workers and others: help spread the word about LawHelp. Here is a brochure in English and here is a brochure in both English and Spanish.

Your support makes a difference! Please mail your tax-deductible donation to:

Southeast Louisiana Legal Services P.O. Drawer 2867 Hammond, Louisiana 70404