Best homeowners insurance in Louisiana for 2023

How Bankrate chose the best home insurance companies in Louisiana

To find the best homeowners insurance in Louisiana, we first obtained current premium information from Quadrant Information Services. After analyzing the data, we also took each company’s coverage offerings, discounts and average cost into consideration, as well as how companies were ranked by third-party agencies like J.D. Power and AM Best. A company’s performance in each of these categories determined its Bankrate Score. The better it scored in each category, the higher its overall Bankrate Score, for a maximum score of 5.0 out of 5.0.

Best home insurance companies in Louisiana

Based on our analysis, USAA, Allstate and State Farm are the top Louisiana homeowners insurance companies, followed by The Hanover and Progressive. These carriers offer a mix of competitive rates, robust coverage, unique discounts, high financial strength ratings and good customer satisfaction scores from the 2022 J.D. Power U.S. Home Insurance Study. If you are in the market for the best Louisiana homeowners insurance, these companies might be a good place to start gathering quotes.

*Premiums are for $250K in dwelling coverage

**Not officially ranked by J.D. Power due to eligibility restrictions

How much is homeowners insurance in Louisiana?

The average premium for homeowners insurance in Louisiana is $1,992 per year for $250,000 in dwelling coverage, which is 40 percent higher than the national average of $1,428 per year. The higher cost is due to the likelihood of home damage occurring in Louisiana and a record-level of hurricane activity impacting the Pelican State over the past two seasons. The state’s coastal positioning leaves it vulnerable to widespread damage caused by hurricanes and tropical storms, and its lower elevation makes most of the state prone to severe flooding.

Louisiana homeowners insurance premiums are in line with the surrounding states. Texans pay an average of $1,967 per year for the same coverage amounts, and homeowners in Mississippi pay $1,900 per year on average. However, Louisiana homeowners pay slightly less for home insurance than they would in Arkansas, where the average cost for a policy is $2,123 per year.

Home insurance in Louisiana

Homeowners in Louisiana have special considerations when it comes to covering their homes. Understanding the common causes of property damage and natural disasters in the state and what coverage you may need to add to get adequate protection can be helpful when choosing a policy or provider.

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 loss 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 $89 billion in damage (in 2021 dollars) across multiple states. Over the last two hurricane seasons, Louisiana has incurred more than $20 billion in insured losses, with more than 600,000 property claims filed by residents, according to the Insurance Information Institute (Triple-I).
• Flooding: Flooding is a big concern for Louisiana homeowners, especially those who reside closer to the Gulf and along the Mississippi River. Portions of Louisiana are actually below sea level, severely increasing the risk of a devastating flood. Keep in mind that flooding is not covered on a standard home insurance policy.
• 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. It can also cause extensive mold damage, which may or may not be covered by your standard home policy.

Once you understand what kinds of property damage are common in your area, you may feel better equipped to purchase the right coverage for your needs.

Home insurance coverage options in Louisiana

In addition to the standard home insurance coverage types, like dwelling, liability and contents, you may want to purchase optional coverage to increase your financial protection. Some coverage types that Louisiana homeowners might want to consider include:

• 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 federally backed National Flood Insurance Program (NFIP) or numerous private flood insurers. Some property insurers may offer a flood insurance endorsement that can be added to your standard homeowners insurance policy to provide dwelling coverage and personal property coverage. In many coastal areas, flood insurance is required if you have a mortgage on your home. It is important to confirm if you are in a FEMA-designated 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 and can also be caused by a sump pump failure or power outage.
• Equipment breakdown coverage: This optional coverage may not be available from every company, but provides coverage for damage to (or the breakdown of) your home’s mechanical systems, like your air conditioner and water heater.
• Windstorm coverage: While coverage for hurricanes and windstorms are included in most standard homeowners policies, there may be some caveats. Depending on the severity of a tropical system and whether it becomes a “named storm,” some companies may have a percentage deductible rather than the traditional dollar deductible. This means that your deductible would be a percentage of your dwelling limit, typically ranging from 2–10 percent. There is also just one windstorm deductible assessed per hurricane season, even if you sustain losses from multiple named storms. Additionally, if your home is in a particularly high-risk area and you are having a difficult time finding insurance, you may be able to opt for the Louisiana Citizens Property Insurance Corporation, which is a FAIR plan intended for temporary coverage while you look for a permanent solution.

Because hurricanes are one of the biggest weather concerns in Louisiana, reviewing your hurricane coverage with your agent and being familiar with your homeowners declarations may be a good idea. With home replacement costs increasing this year due to rising costs of construction materials and labor, make sure that your policy’s dwelling coverage is adequate to rebuild your home in the event of a catastrophic loss. It can also be helpful to know what will happen to your homeowners insurance once a storm reaches “named storm” status or meets other thresholds, like a specific wind speed, so that you can be prepared in the event you need to file a claim.

Learn more:

• Louisiana flood insurance
• Louisiana’s 2022 hurricane season
• Homeowners insurance for people with bad credit
• High-value home insurance
• Largest home insurance companies

Best homeowners insurance in nearby states

• Best homeowners insurance in Texas
• Best homeowners insurance in Arkansas
• Best homeowners insurance in Mississippi