Best cheap homeowners insurance in New Orleans
As Louisiana’s biggest city, New Orleans is dense and crowded. With a population of nearly 400,000, it is safe to say that the Big Easy has no dearth of homeowners, even though the cost of owning a house can be steep here. Over 48.3 percent of houses in New Orleans are owner-occupied, and the average rate of home insurance is $2,789 per year for a dwelling coverage limit of $250,000.
Home insurance is not mandatory, but being insured can cover your most expensive investment against sudden and unforeseen catastrophes and spare your bank account from being drained. While insurance is on the higher side in this city, with a little research it is possible to find affordable options that provide adequate coverage to your property.
Best home insurance companies in New Orleans
Most national home insurance companies operate in New Orleans but not all of them are cheap. We analyzed several major providers based on coverage options, pricing, discounts, third-party scores, and customer service to find the ones that offer the best value for money.
|Home insurance company||Average annual premium for $250K liability||J.D. Power customer satisfaction score|
|State Farm||$1,178||829 /1,000|
J.D. Power 2020 U.S. Home Insurance Study
Some of the cheapest home insurance rates in New Orleans are offered by State Farm, the largest insurer in the country. With over 19,000 local agents nationwide, State Farm makes customer service a breeze, while the bouquet of comprehensive coverage options allows people to customize their policies to best suit their needs and budget. If affordability is your top priority, then the discounts offered by State Farm may help you save. You could also bundle multiple lines of insurance for more savings. The robust online tools and mobile app provide additional convenience to customers, and the company scores above-average ratings in J.D. Power’s 2020 Home Insurance Study.
Although home insurance rates from The Hanover are above the New Orleans average, the company had fewer customer complaints compared to other insurance providers and enjoys a favorable reputation as one of the oldest insurers in the country, despite being unrated by J.D. Power. Based on your location, you can avail of The Hanover’s Platinum Package, which includes deductible waiver, extended dwelling replacement, lock replacement, siding and roof replacement and guaranteed replacement cost among others. The discounts from The Hanover are few but customers can get a price cut for a new home, safety features, and for bundling home and auto insurance policies.
If customer service is what you are concerned about, Allstate makes it easy to get help with its digital tools as well as in-person support in the form of thousands of agents across the country. Aside from basic coverages for liability and dwelling, you can also avail of some unique add-ons such as electronic data recovery and yard and garden coverage. For anything not covered under your home insurance policy, you can always purchase Allstate’s umbrella insurance. The prices are high in New Orleans but with Allstate’s range of discounts, you can easily lower your annual premium.
For those part of the military, one of the best companies for homeowners insurance in New Orleans is the USAA. Despite its limited eligibility criteria, USAA always gets high scores in J.D. Power studies for customer satisfaction and has superior financial stability. Besides the usual coverage for dwelling, outdoor structures, personal property, and liability, USAA also offers identity theft protection, home-sharing coverage for Airbnb hosts, earthquake insurance, replacement cost, and coverage for military uniforms. Most notable discounts are for loyalty, safety features, policy bundling, and being claims-free for a number of years.
Home insurance coverage options in New Orleans
Home insurance is not mandatory in any state but after the devastation caused by Hurricane Katrina, New Orleans homeowners should not have to think twice about insuring their property. A standard home insurance policy includes the following:
- Dwelling: Coverage for your house and attached structures
- Other structures: Coverage for structures on your premises but not attached to the house (barn, shed, pool, etc.)
- Personal property: Coverage for your belongings and valuables
- Liability: Coverage against instances of others sustaining injuries on your property
A standard policy covers weather damage, vandalism and theft. Since New Orleans is prone to storms and floods and possible water damage, some additional insurance possibilities some people choose to get include:
- Flood insurance: Not included in any home insurance policy but available for purchase through the National Flood Insurance Program
- Water backup: Available as an add-on from some insurers, this covers against plumbing damage and flooding from burst pipes
- Replacement cost coverage: This pays for the cost of rebuilding a house, even if it’s more than the actual cash value
Home insurance discounts in New Orleans
Living in a famous historic city like New Orleans is not cheap, but despite the cost, you must keep your house insured against disasters. The good news is that most insurance companies offer certain discounts that could help you save on annual premiums. Common home insurance discounts are:
- New home: If your property is a brand new construction or a custom build, you might be eligible for a discount from some insurers.
- Safety features: When your house is equipped with features like burglar alarms, fire alarms, sprinkler systems and storm shutters, some insurers may offer you a discount.
- Policy bundling: Combining your home insurance policy with auto or life insurance policies could lower your annual premiums.
- Claims-free: If you do not file a claim for three or more years, some insurers could let you avail of a discount to lower your insurance cost.
Frequently asked questions
What is the best home insurance company?
Although there are several home insurance companies across the country, no one can claim to be the best because insurance is highly individual and based upon personal needs and preferences. The insurance companies that usually secure top positions are those with an industry-wise reputation for coverage options, discounts, availability and overall customer service.
Does a home insurance policy cover storm damage?
Yes, standard home insurance policy may offer storm, wind, hail, and lightning damage coverage.
How do I protect my valuable belongings?
Personal property coverage typically insures your belongings and valuable possessions. For additional protection, you can always purchase umbrella insurance or scheduled personal property coverage.
Bankrate utilizes Quadrant Information Services to analyze rates for all ZIP codes and homeriers 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 may be different.
Rates are determined based on 2021 Quadrant Information Services data.