Best homeowners insurance in Louisiana in 2021
Louisiana homeowners face the risk of damage from numerous natural disasters, so finding the best home insurance may be important. Bankrate’s research found that Allstate, Southern Farm Bureau, State Farm and USAA are among the best home insurance companies in Louisiana. Louisiana homeowners insurance costs an average of $1,813 per year for $250,000 in dwelling coverage, according to Bankrate’s 2021 study of quoted annual premiums.
To protect your home, you may be looking for the best homeowners insurance in Louisiana. Bankrate’s insurance editorial team conducted research that could be helpful. We evaluated the largest home insurance companies by market share in the Pelican State and analyzed average premiums, coverage options, discounts, policy features and customer satisfaction scores. Our research may help you feel more confident in making insurance decisions.
The best home insurance companies in Louisiana
To decide which companies to feature, we first obtained current premium information from Quadrant Information Services. After analyzing the data, we also took each company’s coverage offerings, discounts and policy features into consideration. Finally, we turned to companies like J.D. Power and AM Best for third-party ranking information.
If you are in the market for the best Louisiana home insurance, the following companies might be a good place to start:
|Home insurance company||Average annual premium for $250k dwelling||J.D. Power score|
|Southern Farm Bureau||$2,017||Not rated|
*USAA does not qualify for official ranking with J.D. Power due to eligibility restrictions
Although Allstate’s premium is the highest of the companies on our list and higher than Louisiana’s average, they may be worth considering given the optional coverage types they offer. You could personalize your policy by adding electronic data recovery, yard and garden coverage, water backup or musical instrument coverage. Allstate also offers a Claim Rateguard feature, which could help prevent your premiums from increasing after a claim.
Learn more: Allstate Insurance review
Southern Farm Bureau
Just like Allstate, Southern Farm Bureau’s average home insurance premium is higher than Louisiana’s average. The company might still be a good option, especially considering the long list of available optional coverage. You could choose to tailor your policy to your needs with options like reasonable repairs, tree and shrub coverage and debris removal. Southern Farm Bureau also has local agents available if you like to handle your insurance face-to-face.
Learn more: Farm Bureau Insurance review
State Farm is the largest homeowners insurance company in the country and may be appealing if you like handling your insurance needs in person. The company also offers several other types of insurance as well as banking services. The company’s average premium is well below Louisiana’s average, although a few discounts are available, like roofing discounts and multi-policy discounts, to help you lower your premium. However, State Farm does have a below-average score in the 2021 J.D. Power U.S. Property Claims Satisfaction study, which means that customers may be dissatisfied with the carrier’s claims service.
Learn more: State Farm Insurance review
USAA does not qualify for an official J.D. Power ranking because it sells its insurance exclusively to current and retired military members and their immediate families. However, USAA does consistently receive high customer satisfaction scores. If you qualify for coverage, the company’s home insurance features military-focused coverage like uniform coverage, as well as discounts for bundling and having an alarm system.
Learn more: USAA Insurance review
How much is homeowners insurance in Louisiana?
The average premium for homeowners insurance in Louisiana is $1,813 per year for $250,000 in dwelling coverage, which is relatively high compared to the national average of $1,312 per year. The higher cost is likely due to the likelihood of home damage occurring in Louisiana. The state’s coastal positioning leaves it vulnerable to widespread damage caused by storms.
Louisiana’s average premium is in line with the surrounding states. Texans pay an average of $1,863 per year for the same coverage amounts and homeowners in Mississippi pay $1,773 per year on average. However, Louisiana homeowners pay quite a bit less for home insurance than they would in Arkansas, where the average cost for a policy is $2,142 per year.
Home insurance in Louisiana
Homeowners in Louisiana have special considerations when it comes to covering their homes. Understanding the common causes of damage in the state and what coverage you may need to add to get adequate protection can be helpful.
Common causes of loss in Louisiana
If you are unsure what type of home insurance coverage is right for you and your home, consider some of the most common causes of home insurance losses in Louisiana.
- Windstorms: Louisiana’s position on the Gulf Coast leaves it especially vulnerable to wind damage caused by hurricanes. Hurricane Katrina was the costliest natural disaster in U.S. history, causing over $86,000 in damage (adjusted for inflation).
- Flooding: Flooding is a big concern for Louisiana homeowners, especially those who reside closer to the Gulf. Portions of Louisiana are actually below sea level, severely increasing the risk of a devastating flood.
- Water damage: Water damage is a common cause of insurance loss in many states. Water can damage your home in numerous ways, including burst pipes, leaking roofs or backed up basements.
Once you understand what damages are common in your area, it may help you choose what coverage to purchase.
Home insurance coverage options in Louisiana
In addition to the standard home insurance coverage, like dwelling coverage and liability, you may want to purchase optional coverage to increase your protection. Some coverage types that Louisiana homeowners might want to consider are:
- Flood insurance: Damage caused by flooding is not typically covered by standard homeowners insurance and requires a separate flood insurance policy. These can be purchased from the National Flood Insurance Program (NFIP) or some private carriers. Some companies may offer a flood insurance endorsement that can be added to your homeowners insurance policy. In many coastal areas, flood insurance is required. It is important to know if you are in a flood zone that requires insurance.
- Water backup coverage: If water damages your home after backing up in a sewer or drain line, you will need this endorsement to have insurance coverage. This type of damage is common in basements or crawl spaces, but can happen from any sewer or drain line.
- Equipment breakdown coverage: This optional coverage may not be available from every company, but provides coverage for your home’s mechanical systems, like your air conditioner and water heater.
- Windstorm coverage: Many types of wind damage are automatically covered by homeowners insurance policies. However, due to Louisiana’s likelihood of hurricanes, homeowners may need to purchase a separate windstorm policy.
Because hurricanes are one of the biggest concerns in Louisiana, discussing your hurricane coverage with your agent may be a good idea. Some types of wind damage may be covered under your policy, but sometimes “named storms” are excluded and require special coverage. You may also have a separate deductible for hurricane damage.
Frequently asked questions
What is the cheapest homeowners insurance in Louisiana?
The cheapest homeowners insurance company will vary based on your individual rating factors, like your age, claims history, home’s age and the specific features of your home. Getting quotes from several companies may help you find coverage that fits your needs and budget. However, remember that price may not always be the only factor worth considering when researching Louisiana homeowners insurance companies. You may want to review coverage options, discounts and customer satisfaction scores as well.
How do I get homeowners insurance in Louisiana?
To get home insurance, start by deciding what features matter most to you. Once you have a list, you can get quotes from several companies that may fit your needs. You will need your address, date of birth and some information about your home, like how old your roof is and an idea of what coverage types and limits you want to purchase (although an agent should be able to help you decide). Once you decide to proceed with a company, a representative will usually let you know the next steps, which may include signing an application and making a payment.
Will my homeowners insurance coverage pay for temporary housing?
Most homeowners insurance policies include additional living expenses (ALE) coverage, which can pay for the costs associated with needing temporary housing after a covered loss. Covered expenses might include a hotel, a rental home and laundry services.
Can I get Louisiana home insurance if I live in a high-risk area?
The Gulf Coast of Louisiana is a particularly high-risk area for insurance companies due to the likelihood of widespread and damaging storms. If you live in this area, finding home insurance coverage might be more difficult than it would be in lower-risk areas. As a last resort, you may need to seek coverage through the Louisiana Citizens Property Insurance Corporation. This is last-resort coverage for homeowners who can’t obtain coverage elsewhere. Its policies are state-mandated to be more expensive than private insurers, but it could provide coverage if you have no other options.
Bankrate utilizes Quadrant Information Services to analyze 2021 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).
These are sample rates and should be used for comparative purposes only. Your quotes will differ.