As a new homeowner in Louisiana, one of your top priorities should be finding the best home insurance for your needs. Home insurance isn’t something to skimp on since it’s a basic necessity when it comes to fire or water damage and even theft. Especially in Louisiana, home insurance with flood and water damage protection is a must.
In Louisiana, about 65.5% of homes are owner-occupied, and it translates to big bucks when it comes to home insurance. In 2017 alone, hurricanes caused about $500-900 million in losses in Louisiana, so having the proper coverage is imperative.
Consider the following factors as you compare homeowners insurance companies:
- How much are your home and property worth? Knowing this will help you understand how much you’re willing to pay for home insurance.
- How much would you be able to spend on a deductible? The deductible is the amount that you’ll have to pay out-of-pocket before the insurance company begins to cover damages, so this needs to be something that fits into your budget. You can save money on your home insurance by choosing a higher deductible, but that’s also more you’ll need to cover yourself, so it’s important to find the right balance.
- How much is your personal property worth? This will help you decide if you want your home insurance plan to include personal belongings.
- Is your home particularly vulnerable to certain disasters? Living in Louisiana, flooding is a major concern. Some standard insurance policies will cover structural home damage, but may not include the scope of damage caused by flooding. Keep in mind that flood insurance is typically not included in standard policies, and with many insurers, you’ll need to add flood insurance via the National Flood Insurance Program.
The best home insurance companies in Louisiana
The best home insurance companies vary from state to state because of the unique vulnerabilities and different company offerings.
Check out our list of the 5 best Louisiana home insurance companies:
- Louisiana Farm Bureau
- State Farm
- American Strategic Insurance (ASI)
How did we choose the top insurance companies?
To provide you with the most informative, unbiased options, we read through dozens of home insurance websites and consumer reviews, paying special attention to the J.D. Power Insurance Study as a source of thorough ratings. The top 5 companies that we picked had a variety of low-cost options, coverage specific to Louisiana vulnerabilities and overall customer satisfaction.
|J.D. Power Rating||AM Best Rating||BBB Rating|
|Louisiana Farm Bureau||N/A||A||A+|
|State Farm||4 out of 5||A++||A|
|Allstate||3 out of 5||A+||A+|
|USAA||5 out of 5||A++||B-|
|ASI||3 out of 5||A+||A+|
Louisiana Farm Bureau
The Louisiana Farm Bureau offers broad coverage within their homeowner’s insurance policy. It packages together insurance for property damage to your home and its contents, protection against theft of your personal property, personal liability, medical payments, and loss of use. If you need additional coverage, you can also choose to cover debris removal, loss assessments, arson, collapse and more.
Additional insurance options:
The Louisiana Farm Bureau also offers insurance for auto, finance and farms.
State Farm home insurance offers coverage specific to weather damage, including storms, fire, wind, hail and snow. The companies non-weather coverage includes theft and vandalism and accidental direct loss, such as from plumbing or electrical currents. State Farm will not cover any damage that was intentionally caused, which is typically the norm for insurance agencies.
Additional insurance Options:
State Farm also offers insurance for auto, life, health, disability and liability.
Allstate offers four different standard coverage options, including dwelling coverage, liability protection, personal property coverage, and guest medical protection. Coverage for things like identity theft, water backup, and yard and garden aren’t considered part of the standard coverage and are optional add-ons for any policy. Allstate offers a unique flood insurance plan that isn’t a part of the standard offerings, so it could be more pricey for Louisiana homes, yet a very essential coverage especially for homes close to the gulf.
Additional Insurance Options:
With Allstate, you can also find auto, business, life and identity insurance.
USAA homeowners insurance covers fire, theft, vandalism, most weather-related events, liability and identity theft as part of their standard package. Since the company only mentions “most” weather-related events, you may want to double-check that hurricanes and flooding would be part of your coverage, especially if you live close to the water in Louisiana. USAA is known for excellent rates, however, coverage from USAA is only available to military members and their families.
Additional Insurance Options:
USAA offers a broad variety of insurance for military members, including auto, renters, personal property, flood, life, umbrella and small business insurance. If you’re looking at USAA’s options, keep in mind that their personal property and flood insurance options are separate from their overall homeowner’s insurance package.
American Strategic Insurance (ASI)
American Strategic’s homeowner’s insurance will cover the full replacement value of your home and other structures, such as a shed or garage, your personal property inside the home, some living expenses throughout home repairs and personal liability. ASI’s flood insurance is a separate policy, so you’ll need to get a unique quote if flooding protection is a priority.
Additional Insurance Options:
ASI also offers insurance for renters and condo owners as well as seasonal and umbrella insurance.
Average Homeowners Insurance Cost in Louisiana
According to the Insurance Information Institute, the average premium for homeowners insurance in Louisiana is $1,967. Unfortunately, this makes Louisiana one of the most expensive states for homeowners insurance, but it’s well worth it to protect from hurricanes, storms, hot weather and tornadoes.
We assessed our top 5 insurance providers in Louisiana using the Louisiana Department of Insurance resource to get a sample premium rate for the following profile: A 10-year old home constructed with brick that’s about 1,800 square feet, needing $200,000 building coverage and $100,000 for personal property. The homeowner has a 710 credit score and lives in New Iberia, Louisiana, which is close to the Gulf of Mexico.
- Louisiana Farm Bureau: $2,924
- State Farm: $3,091
- Allstate: $2,231
- USAA: $2,263
- ASI: $1,716
Home Insurance Coverage Options in Louisiana
Most homeowner’s insurance packages will include the same standard features, while you may need to pay more for a policy with certain add-on coverages.
- Dwelling Coverage:This will cover damage to the physical structure of your home, and usually also includes any other physical structures on your property such as a shed or garage.
- Liability Protection: This coverage keeps your protected financially in case someone gets hurt while on your property or you accidentally cause damage to someone else’s property.
- Personal Property: This covers the contents inside your home. If you have especially valuable belongings, like art or jewelry, you may need to get specific coverage for those items.
- Loss of Use: This protects you financially for when there’s damage to your home and you can’t stay there while it’s being fixed. Most insurance will cover the cost of a hotel and rental car.
- Theft and Vandalism: Should your home be burglarized or vandalized, most insurance will cover the cost of repairs or replacement.
- Medical: Some policies will help cover medical expenses for yourself or any guests that occur because of property damage to your home.
- Weather: Most policies will include protection from weather-related events like storms and wind.
- Flooding: This is important coverage to consider in Louisiana. Unfortunately, it usually isn’t part of standard weather coverage and may need a unique policy for your home.
- Debris Removal: This is an add-on coverage that can help cover the costs of removing debris like trees and branches after a storm.
Common Causes of Home Insurance Losses in Louisiana
If you’re still unsure what type of home insurance policy is right for you and your home, consider some of the most common causes of home insurance losses in Louisiana.
- Flooding: Flooding is a big concern for Louisiana homeowners, especially those who reside closer to the gulf.
- Water Damage: Water damage is a common cause of insurance loss in most states. Keep in mind that water damage includes things like burst pipes, but usually doesn’t cover weather-related instances like flooding.
- Windstorm: Wind damage is another big concern for Louisiana homeowners, especially when considering the number of hurricanes that Louisiana experiences. Luckily, wind damage is usually covered as part of a standard dwelling policy.
Since hurricanes are a common problem for homeowners in Louisiana, it’s important to ensure you’re covered from all the types of damage that a hurricane could incur in your home. Most insurance companies in Louisiana will even have a hurricane deductible that kicks in any time damage occurs by a declared hurricane. You may also want to look into hazard insurance to help cover the cost of anything that can happen in the event of a natural disaster.
Frequently Asked Questions
What is the cheapest homeowners insurance in Louisiana?
We found that American Strategic Insurance (ASI) has the cheapest homeowners insurance for a standard baseline profile living near the gulf. In general, homeowner’s prices will vary greatly depending on the age and size of your home, the value of your home and belongings, your proximity and likeliness to experience severe weather or natural disasters, your credit score and many other factors.
How do I get homeowners insurance in Louisiana?
To get home insurance, start by doing a personal assessment of your home value and personal property value. These amounts will help determine the cost of your insurance premium. Next, think about the standard insurance that you need as well as any other optional add-ons you may want for your policy, such as hazard or flood insurance.
How much is home insurance in Louisiana?
The average premium for homeowners insurance in Louisiana is $1,967, according to the Insurance Information Institute, which in 2016, made Louisiana the most expensive state for home insurance.