As a new homeowner in Louisiana, one of your top priorities is probably finding the best homeowners insurance for your needs. Home insurance is not something to skimp on because it offers protection for events such as 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 2018, Hurricane Michael caused insured losses of up to $13 billion in the Gulf States, including Louisiana, so having enough home insurance coverage is critical. In 2017 alone, hurricanes caused about $500-900 million in losses in Louisiana, so having the proper coverage is imperative.
Unfortunately, homeowners insurance Louisiana is not inexpensive. The average cost of a homeowners policy in the state is $2,297, which is 56% higher than the national average of $1,477.
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 six best homeowners insurance companies in Louisiana:
- State Farm
- United Insurance
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 2020 Insurance Study as a source of thorough ratings. The top six companies that we picked had a variety of low-cost options, coverage specific to Louisiana vulnerabilities and overall customer satisfaction.
|Home Insurance Company||Average Annual Premium for $250K Dwelling||J.D. Power Score|
Quadrant Information Services, 2020
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 are not considered part of the standard coverage and are optional add-ons for any policy.
Allstate offers a unique flood insurance plan that is not a part of the standard offerings. It could be more pricey for Louisiana homes, yet a very essential coverage, especially for homes close to the gulf. Another nice feature is Claim Rateguard, which keeps your premium from increasing as a result of filing a claim.
Bankers offers coverage for homeowners, renters, and condos, among other coverages, for Louisiana. It also writes flood policies for those on the coast or near bodies of water. It has been responding to flooding and storm claims for more than 40 years, and fields on-site claim teams after hurricanes or storms to help policyholders get back on their feet quickly. Available endorsements include animal liability, identity fraud, and additional replacement cost coverage.
To find coverage that is tailored to Louisiana homeowners by a company that focuses on Gulf states, Gulfstream is a great place to start. The company has agents in six states, including Alabama, Texas and Florida, and it understands the concerns of those who live in states that are adjacent to the Gulf and subject to its precarious weather patterns.
In addition to standard coverage that includes dwelling, loss of use, and property, Gulfstream has more than 13 endorsements available, ranging from golf cart coverage to water back-up and sump pump overflow.
As the largest writer of homeowners insurance policies in U.S., State Farm has a range of coverage options that can make it appealing to Louisiana homeowners. State Farm has competitive ratings from consumer agencies such as J.D. Power, and rates highly in its financial condition according to AM Best, which gives it an A++ rating.
State Farm does not have as many discounts as some other homeowners insurance companies, but the ones they do have are easy to take advantage of, including bundling, fire or smoke alarms, and roofing discounts.
United Insurance’s coverage options include several that are not often found with Louisiana insurers. One of these options include service line coverage, which covers underground water, sewer and electrical lines, and can be added to its homeowner policies as an enhancement.
Equipment breakdown is also standard for a small fee of $35 a year.
United’s Executive Enhancement endorsement increases policy coverage limits and the scope of the policy, and there is a wide assortment of discounts, including a 10% senior discount and 5% public employee discount, to keep the cost down.
USAA homeowners insurance covers fire, theft, vandalism, liability and identity theft as part of their standard package. The company also covers most weather-related events, but 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.
Consider the following factors as you compare Louisiana homeowners insurance companies
- How much are your home and property worth? Knowing this will help you understand how much you are willing to pay for home insurance.
- How much would you be able to spend on a deductible? The deductible is the amount that you will 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 is also more that you will 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.
Average cost of homeowners insurance in Louisiana
The average annual premium for homeowners insurance in Louisiana is $2,297 for a $250k dwelling, compared to the national average of $1,477. 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.
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 you 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 are 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 does not 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 are covered from all the types of damage that a hurricane could incur in your home. Nine hurricanes have hit Louisiana since 2005’s Hurricane Katrina. Most homeowners 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 $2,297, which makes Louisiana one of the more expensive states for home insurance. However, shopping around for a homeowners insurance policy where you qualify for discounts can help reduce the overall expense.
Bankrate utilizes Quadrant Information Services to analyze rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:
- Coverage A, Dwelling: $250,000
- Coverage B, Other Structures: $25,000
- Coverage C, Personal Property: $125,000
- Coverage D, Loss of Use: $50,000
- Coverage E, Liability: $300,000
- Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).
Rates are determined based on 2020 Quadrant Information Services data.
These are sample rates and should be used for comparative purposes only. Your quotes may be different.