Updated over 1 year ago on . Most recent reply
How to sell with exorbitant home insurance prices
Hello, I inherited a home in a small town in Louisiana. Since I live out of state and there are no nearby managing companies, I decided to sell the home. I have had 6 people sign paperwork to buy the home over the last few months, but even the cash offers have pulled out when they see the price of Homeowners insurance in Louisiana right now. The last offer I signed on was half the cost of the appraisal of the home, and they still pulled out. I am not sure what to do, since I cannot create new companies for insurance options, and do not expect those prices or interest rates to go down anytime soon. Do I have any other options?
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#2 Creative Real Estate Financing Contributor
- Lender
- Charleston, SC
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#2 Creative Real Estate Financing Contributor
- Lender
- Charleston, SC
Insurance is rough right now in Louisiana. About 1-1.25% of the home's value (approx) has been what I've seen for decent policies. One thing that may help is replacing the roof - a lot of companies either wont write or overprice premiums for homes with roofs over about 5-8 years old because it's a replacement waiting to happen with the next hurricane. Reach out to a local broker and see if they can identify a carrier that would be reasonably priced for the house for a reference, or find out what you can do to remediate the risk to lower the premium.
What town?
- Patrick Roberts
