Louisiana homeowners face the risk of catastrophic damage from numerous natural disasters, including hurricanes, tornadoes and floods, so finding the best home insurance is an important step in protecting your assets. Bankrate’s research found that Allstate, The Hanover, Southern Farm Bureau, State Farm and USAA are among the best home insurance companies in Louisiana. Louisiana homeowners insurance costs an average of $2,009 per year for $250,000 in dwelling coverage, according to Bankrate’s 2022 study of quoted annual premiums.
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 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 out of 5.
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||Bankrate Score||Average annual premium for $250K in dwelling coverage||J.D. Power score|
|The Hanover||3.2||$1,806||Not rated|
*Not officially ranked by J.D. Power due to eligibility restrictions
USAA does not qualify for an official J.D. Power ranking because it sells its insurance exclusively to active-duty military members, veterans and their qualified immediate family members. However, USAA consistently receives high customer satisfaction scores. If you qualify for coverage, the company’s home insurance features military-focused coverage, like uniform coverage, plus discounts for bundling and having a monitored alarm system. USAA is rated A++ (Superior) by AM Best, the highest financial strength rating possible.
Learn more: USAA Insurance review
State Farm is the largest homeowners insurance company in the country according to Insurance Information Institute (Triple-I) market share data and may be appealing if you like handling your needs in person through its statewide network of exclusive local agents. The company also offers several other types of insurance, as well as banking services. The company’s average annual premium is well below Louisiana’s overall average, although a few discounts may help lower your premium, like roofing discounts and multi-policy discounts. However, State Farm does have a below-average score in the 2021 J.D. Power U.S. Property Claims Satisfaction study, which means previous customers’ experience with the company may have been less than satisfactory. The company carries an A++ (Superior) financial strength rating from AM Best. possible.
Learn more: State Farm Insurance review
Although Allstate’s premium is the highest of the companies on our list and higher than Louisiana’s average, it may be appealing based on the optional coverage types offered. 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 may prevent your cost of homeowners insurance from increasing after a claim. The company is rated A+ (Superior) by AM Best for its financial strength.
Learn more: Allstate Insurance review
Homeowners who already have a car insurance policy with Progressive may consider bundling their homeowners policy for a multiple policy discount. There are also other potential ways to save money on the premium, including quoting in advance, installing an alarm and safety devices as well as recently purchasing your home. Progressive is another financially strong insurer with an AM Best rating of A+ (Superior).
Learn more: Progressive Insurance review
With an average annual premium below the state’s average, The Hanover may be a good choice for homeowners on a budget. In addition to the average annual premium being more affordable than many of its competitors, The Hanover also offers several endorsements to help you customize your policy, including service line coverage, water backup coverage and guaranteed replacement cost coverage. The Hanover also has online resources to help you with the process of being a homeowner, like buying, renovating and selling your home. The company carries an A (Excellent) financial strength rating from AM Best.
Learn more: The Hanover Insurance review
How much is homeowners insurance in Louisiana?
|Louisiana city||Average annual premium for $250K dwelling coverage|
|Baton Rouge, Louisiana||$1,627|
|New Orleans, Louisiana||$2,685|
The average premium for homeowners insurance in Louisiana is $2,009 per year for $250,000 in dwelling coverage, which is 45% higher than the national average of $1,383 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 tropical cyclones, and its lower elevation makes most of the state prone to severe flooding.
Louisiana’s average premium is in line with the surrounding states. Texans pay an average of $1,860 per year for the same coverage amounts, and homeowners in Mississippi pay $1,840 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 $2,104 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 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 coverages, 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%. 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 averaging more than 16% 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.
Frequently asked questions
Bankrate utilizes Quadrant Information Services to analyze 2022 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. 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.
Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for homeowners to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.
To determine how well the best home insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moody’s had the most impact on the companies’ Bankrate Scores. As price is a common consideration for homeowners, we analyzed quoted premiums based on 40-year-old male and female homeowners with a home policy with $250,000 in dwelling coverage. This profile, assessed across more than 35,000 ZIP codes in the U.S., provided a basis on which homeowners may compare each provider.
While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.
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