Best homeowners insurance in Louisiana (August 23)

Louisiana is known for having one of the most humid climates in the country, besides facing several storms throughout the year. If you own a home in the state, you will need a comprehensive Louisiana home insurance policy to protect your home from all possible problems – from low-level mold to extreme hurricanes.

The research team at Way.com has broken down all you need to know in this review of Louisiana home insurance. This will ultimately help you choose the right policy for your home.

Louisiana home insurance: What you need to know

Living in the Bayou State warrants a good home insurance policy purely because of the weather you're going to encounter. Besides the humidity caused by its location in the Gulf, you should expect at least a few repairs every time a storm hits. That's where Louisiana home insurance comes in handy!

Having comprehensive Louisiana home insurance coverage can protect you against financial loss – which is almost guaranteed should a hurricane or tornado come your way! The home insurance premium for each home can vary based on factors like:

• Type of residence (primary, secondary, or seasonal)
• Number of full-time residents
• Built up area in sq ft
• Year built
• Number of rooms and stories
• Building material
• History of home insurance claims

The average Louisianan pays nearly $1690/year as premiums on home insurance, especially because it lies in a disaster-prone region of the country. Unlike auto insurance, state laws don't govern homeowners insurance. As a result, the premium you pay will depend on the value of the items and structures covered by the policy.

What does a homeowners insurance policy cover?

A standard homeowners insurance policy will pay for any repairs/ restoration if your home is damaged under certain circumstances. Usually, this will cover financial losses arising from theft, burglary, fire, natural hazards, and more. Further coverages will protect you against other issues like sinkholes, rodents, bird infestations, etc.

Here are the broad categories of coverages included in Louisiana home insurance:

• Dwelling protection: This pays for any damage to your home's structure or exterior if it occurs due to a predefined list of hazards. Dwelling protection also covers secondary buildings like garages and decks.
• Liability protection: This category of homeowners insurance will pay for any harm that may befall someone while in your house. For example, if a visitor trips over a broken step and sprains her leg, or gets an electrical shock from one of your plug points, then liability protection will cover their medical bills.
• Other structures protection: If you have adjacent structures that are not attached to your home, they will be covered under this. Examples of 'other structures' include fences, detached garages, barns, etc.
• Personal property protection: Your personal belonging like furniture, clothing, accessories, electronics, and jewelry could be damaged in an event. This coverage pays to restore or replace them.
• Medical payments to others: It takes care of minor medical claims made by those not living in your home, regardless of fault. For instance, medical payments insurance can pay for bills if your dog bit a guest accidentally.
• Additional living expenses: It covers additional costs like a hotel stay, restaurant meals, and other necessary services, including storage, if you cannot reside in your home due to a situation covered by your policy (such as a tornado).

What risks are covered by a standard Louisiana home insurance policy?

The major risks covered by a standard homeowner's insurance policy in Louisiana include:

• Damage or loss by theft
• Structural damage due to fires
• Plumbing/water leaks
• External/interior damage from fallen trees
• Water leakage from air conditioning systems and water heaters
• Damage from natural disasters like tropical storms, hurricanes, wind

Louisiana lies in 'Tornado Alley' - a region of the US most affected by tornadoes and tropical storms. Other states in this category include Texas, Oklahoma, Kansas, Iowa and more. Due to the tendency for destruction from these events, the home insurance rates are also higher in these states.

What is not covered by a typical homeowners insurance policy in Louisiana?

Though it varies based on the insurer, typical Louisiana home insurance policies do not cover:

• Flooding
• Sinkholes
• Earthquakes
• Losses due to power outage
• General wear and tear
• Vermin and pest infestations
• Purposeful loss
• Damage due to war

The cheapest home insurance companies in Louisiana

According to our research, State Farm provides the cheapest Louisiana home insurance with an annual rate of $1180. Allstate comes a close second with the average home insurance premium rate of $1345.

However, choosing the cheapest rates is not always the best option, since you also need to consider how comprehensive their coverage is. The better way to choose Louisiana home insurance is to compare rates and features of policies before deciding on one.

Average cost of homeowners insurance in Louisiana by credit score

Your credit score directly factors into the kind of home insurance premium you qualify for. A credit score above 700 can significantly reduce the amount of money you pay for coverage. Here are the broad estimates of how much you can expect to pay based on your credit score:

The best homeowners insurance in Louisiana for those with poor credit

Typically, poor credit borrowers in Louisiana don't have too many options when it comes to home insurance. However, it's not impossible for you to get a good Louisiana home insurance rate.

There are several companies that offer decent home insurance rates even for applicants with bad credit. Take a look at the average rates given to some poor credit applicants below:

The best homeowners insurance in Louisiana for pool owners

While owning a house with a pool is often a dream for many, most people don't account for the expense of maintaining one. There's also the issue of resale value and repairs in the event of a disaster damaging it.

The following companies offer good rates for pool owners in Louisiana:

The best homeowner's insurance in Louisiana is based on coverage limits

You can choose to take out different dwelling coverage limits based on what you can afford. The higher the dwelling coverage, the more you'll have to pay as premium.

Homeowners Insurance deductibles in Louisiana

A deductible is a certain amount that you agree to pay from your pocket before the insurance company pays out the amount it owes. Some companies set a percentage deductible, while others set a flat amount. For example, you can either pay a flat 10% as deductible or choose an amount like $500, $1000 etc.

In Louisiana, you may have to pay a certain amount as 'hurricane deductible' if you have additional windstorm/hurricane coverage. This ranges from between 2-10% and is usually included for policies in hurricane-prone areas. For instance, if the $300,000 cap on your home insurance and your deductible is 5%, your financial obligation would be $15,000 instead.

Here are the home insurance premiums in the state by deductibles.

Louisiana homeowners insurance costs by city

Though the average cost of home insurance in Louisiana is $1690/year, it could vary depending on where you are located. Within cities, home insurance can change depending on the ZIP code, crime rate, number of claims filed in the neighborhood, and more.

Here are the average home insurance rates in Louisiana cities.

Home Insurance Discounts in Louisiana

You can further reduce your home insurance premiums by using any of the several discounts that companies offer applicants. However, not all companies offer every kind of discount, so ensure you ask your insurance agent if any are applicable.

Some popular home insurance companies and their discounts are given below:

Comparing Common Features Across Top Insurance Companies

Are you planning to buy the best homeowners insurance in Louisiana? Then here are some features you must look into.

Common Causes of Home Insurance Claims in Louisiana

Because of its location on the Gulf of Mexico, Louisiana lies within 'Tornado Alley' and is heavily affected by extreme weather events. Major causes of claims include:

• Hurricanes: Damage to homes can be pretty significant, especially in cities along the coastline
• Tornadoes: The NOAA reports that tornadoes can cause up to $50 million in damages to Louisiana every year.
• Flooding: Louisiana sees its fair share of torrential rainfall from tornadoes that hit the state – and this can cause heavy flooding, damaging home basements and foundations.
• Hail, wind damage, and lightning strikes: Though covered under standard home insurance, these natural hazards can cause extensive damage to your home. It's always useful to have additional insurance to cover lightning strikes and hailstorms.

Therefore, it is necessary to buy a comprehensive, disaster-proof home insurance policy that covers all the risks associated with living in a state like Louisiana.

Most common disasters in Louisiana

Hurricanes are the most common disasters affecting Louisiana. The state has been battered by 28 hurricanes in the last 20 years – that's an average of more than two per year!

2020 was one of the worst years in recent memory.

• Hurricane Laura affected large parts of the state causing storm surges and severe flooding.
• This was followed by Hurrican Delta and Hurricane Zeta, both of which left many houses and vehicles damaged.
• In 2021, tropical storm Claudette brought heavy winds and rainfall to the state
• In 2022, Hurricane Ida wreaked havoc through the state and caused $18 billion in insured damages.

The month of September has seen the greatest number of tropical storms/hurricanes in the past 20 years.

Natural disaster coverage in Louisiana

Do homeowners insurance cover tornadoes in Louisiana?

In Louisiana, most home insurance policies cover tornado damage. Tornadoes are classified as windstorms by the insurance industry, which is usually covered under your standard home insurance policy. However, read the fine print of your policy to ensure it covers both interior and exterior losses.

In some cases, interior damage may only be protected when it results from exterior damage, such as a broken window. The average level of coverage for detached buildings is 10% of the value of the insured home.

Does homeowners insurance cover hurricanes in Louisiana?

Yes, most home insurance companies in Louisiana are required to cover storm damage if it is classified as a hurricane by the National Weather Service . However, damages from a 'tropical storm' will not be covered – you may have to get additional windstorm insurance to recoup financial losses.

Does homeowners insurance cover floods in Louisiana?

Typically, flood insurance is not included under Louisiana homeowner's insurance – even if it occurs as a result of a hurricane or tropical storm. We recommend purchasing additional protection via the National Flood Insurance Program (or a private flood insurance provider). The average cost of insurance through NFIP is about $700/year.

Factors that affect home insurance rates in Louisiana

Are you planning to buy Louisiana home insurance? Then consider these factors before buying one!

• Your location: The cost of homeowners insurance in Louisiana is greater for homes in high-crime zones and hurricane-prone regions.
• Rebuild rate: Your home insurance rate may be affected by building supplies and labor costs in your neighborhood.
• Age/condition : Insurance for newer, well-maintained properties is lower than for older ones.
• Claims history: Homeowners with a history of making house insurance claims frequently face higher insurance premiums.
• Credit history: Your credit score is a criterion that many insurance companies consider. Premiums for homeowners with bad credit are frequently higher.
• Dog breed: Be ready to pay a higher Louisiana home insurance cost if you buy a dog that your insurance company classifies as a 'dangerous breed.'

Tips for Buying Homeowners Insurance

• Assess your rebuilding costs: Ask your insurance agent or a reliable builder how much it would cost to rebuild your house using local labor and fair material rates. You should have at least this coverage for your home, if not more.
• Review the advantage of replacement cost over actual cash value: Think about getting replacement cost coverage for your house and possessions. You'll obtain the money you need to buy new ones to replace your old ones. You will receive a depreciated amount if you use actual cash value.
• Consider add-on coverage for your expensive items: Consider scheduling personal property for high-value things like expensive gadgets, sports, or musical instruments, as well as antiquities, if you have any. You can fully compensate them with this coverage.
• Evaluate your liability coverage needs: Find out how much liability insurance you require. Choose at least $300,000 or a sum that would cover the potential loss in the event of a lawsuit.
• Assess coverage gaps: Some house insurers provide extra benefits, like greater limits for landscaping items like trees and shrubs. I provide coverage in the case they get damaged in a covered incident or assistance with paying for damage from water or sewer backups.
• Check financial ratings: Verify the financial strength rankings by organizations like AM Best and Standard & Poor's. You may not be eligible for a mortgage from some firms unless your insurer has a financial strength rating of at least 'A.'
• Ask for discounts: Make sure you're taking advantage of all the discounts you qualify for. For instance, you might be eligible for a discount if your home has particular security measures or if you have your home and auto insurance from the same provider.
• Compare quotes from multiple insurance companies: The cost of a single Louisiana home insurance policy might vary greatly amongst insurance providers. You won't know how much you might save if you don't compare prices.

How to Get Louisiana Home Insurance with Way.com

An average home insurance cost in Louisiana costs you around $1680/year. However, getting low rates and a comprehensive home insurance policy at the same time can be a challenge if you don't know where to look! Don't fret - Way.com can help you find, compare, and buy the best home insurance policies in Louisiana.

Through the Way.com website or app, you can find the most affordable Louisiana home insurance rates and get free quotes. Furthermore, our Louisiana insurance agents can help you understand the state's complex laws, insurance terms, and discounts!