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Louisiana Home Insurance

By Posted : September 2, 2020

Homeowners Insurance Louisiana

Insurance.com’s team of experts reviewed Louisiana home insurance companies to find the best ones, and also analyzed rates to identify the average homeowners insurance cost for various coverage levels, ZIP codes and major cities. You’ll have all the information you need to make confident choices when deciding what coverage to buy to protect your home and belongings in the Bayou (or Pelican) State.

Here we provide information on:

What is the average home insurance cost in Louisiana?

The average home insurance cost in Louisiana is $3,270. That makes it one of the least expensive states for home insurance, compared to the average rates for homeowners insurance by state (link to article here). Louisiana is the ninth least expensive state in the country for home insurance. Its average cost is $965 more  (-42 % higher) than the national average of $2,305, for the coverage level of:

  • $300,000 dwelling coverage
  • $1,000 deductible
  • $300,000 liability

Best home insurance companies in Louisiana

The homeowners insurance company with the cheapest rates isn’t necessarily the best. Other factors to consider are customer service and claims processing. Insurance.com’s 2020 Best Home Insurance Companies report ranks major insurers on feedback from 3,700 customers. They are asked about the value for the price, customer service, claims service and if they’d recommend the company.

Here are how home insurance companies in Louisiana ranked on the survey. Scores are out of 100.

RankingCompanyScore
1Erie92.24
2Esurance89.4
3Nationwide88.48
4Chubb (ACE INA Group / Ace Limited)87.69
5AIG (American International Group)87.3
6USAA87.09
7Safeco86.59
8American Family85.76
9Progressive84.76
10Travelers83.97
11Allstate83.65
12State Farm83.42
13Liberty Mutual82.36
14Hartford81.86
15Farmers79.71

Homeowners insurance in Louisiana: How it works and how much you need

Before we dive into the other research on costs and companies, you need to know what you’re buying and why, and how much you need.  So, let's talk about the basic components of home insurance, and how much to get to make sure you’re not underinsured. A home insurance policy includes coverage for:

  • Dwelling
  • Liability
  • Medical payments

Policies also usually have a set percentage of your dwelling coverage for:

  • Other structures – 10%
  • Personal property – 50%
  • Loss of use – 20%

Liability insurance applies to incidents in which you’re at fault and the result is that a guest in your home or on your property is injured. It covers medical expenses, as well as damage caused to neighbors’ property. Personal liability also covers legal fees if you are sued, as well as any resulting judgments from a lawsuit, up to your policy limits.

Most home insurance policies come with $100,000 in personal liability insurance but this is rarely enough coverage. The cost to defend a lawsuit or to pay for medical expenses for a serious injury can easily exceed that amount. Most experts recommend upping your limits to at least $300,000.

Medical payments also pays for injuries to guests in your home but differs from liability in that it applies to injuries regardless of who is at fault. It is for minor incidents as it comes with much lower coverage limits than liability insurance. Medical payments coverage is typically for $1,000 or $5,000.

Dwelling coverage pays to repair your home. When buying home insurance, you should insure your home based on its replacement cost. That’s the amount you need to rebuild it if damaged or destroyed, and not its market value, which is what you could sell your home for in its current condition. Replacement cost offers more protection because the cost of building a home often exceeds its market value.

When shopping for a policy, you will have to choose a “dwelling coverage” amount. You should select a dwelling coverage limit that best matches the cost to repair damage to your home or rebuild it completely at equal quality — at current prices. You can calculate your replacement cost by using online calculators or hiring an appraiser to give you a replacement cost valuation or by doing it yourself.

How much is homeowners insurance in Louisiana by coverage level?

Now that you know how different components of a policy work to protect you, here we show the average cost of Louisiana homeowners insurance for 10 coverage levels, based on a rate analysis by Insurance.com.

Enter a dwelling coverage of $200,000, $300,000, $400,000, $500,000 or $600,000 to see annual average rates based on a $1,000 deductible for each liability limit of $100,000, $300,000. As you can see, the difference in price between low liability limits and the recommended higher amount is negligible, less than $20.

Coverage SetAverage Premium
$200,000 with $100,000 Liability$2,633
$200,000 with $300,000 Liability$2,656
$300,000 with $100,000 Liability$3,249
$300,000 with $300,000 Liability$3,270
$400,000 with $100,000 Liability$3,711
$400,000 with $300,000 Liability$3,704
$500,000 with $100,000 Liability$4,077
$500,000 with $300,000 Liability$4,091
$600,000 with $100,000 Liability$4,195
$600,000 with $300,000 Liability$4,210

Homeowners Insurance in Louisiana comparison by ZIP code

By entering your ZIP code in the search box, you’ll see the average home insurance rate for that area, as well as the highest and lowest premium fielded from major insurers. This will give you an idea of how much you can save by comparing home insurance rates. The difference between the highest the highest rate and the lowest rate is how much you can save by shopping your policy.

Cheap homeowners insurance in Louisiana: Rates by company

It's crucial to shop around for the best home insurance rate, because prices for the same coverage vary by hundreds of dollars. That means, if you don’t compare rates, you may wind up overpaying.

Many factors affect home insurance rates. Among others, the Insurance Information Institute (III) cites the following:

  • Your home's square footage
  • Building costs in your area, and your own home's construction, materials and features
  • Local crime rates
  • The likelihood of certain types of disasters, such as hurricanes

Each carrier uses its own method for deciding what you pay, which is why prices differ so much. Insurance.com Senior Consumer Analyst Penny Gusner suggests getting at least three price quotes when shopping for coverage, and says that doing so can save you up to hundreds of dollars annually.

Below are average home insurance rates, ranked by company for a policy with $300,000 in dwelling and liability coverage with a $1,000 deductible.

Company NameAverage Premium
ASI Lloyds$1,577
United Property Casualty$2,389
Safeco$2,800
USAA$3,075
Louisiana Farm Bureau$3,203
Garrison$3,375
Liberty$3,453
Foremost$3,775
Farmers$3,815
State Farm$3,874
Allstate$4,420

Cost of Louisiana homeowners insurance by city

Though you can see how much coverage costs for your neighborhood by using our average rates tool above, you may want to know the cost of a policy in your city, and how it compares to others. Below we provide rates for Cincinnati homeowners insurance, as well as Columbus and eight others in Louisiana.

CityAverage Rate$ Difference from state average
New Orleans$3,473$203 More
Baton Rouge$3,593$323 More
Shreveport$2,935$335 Less
Metairie$4,297$1,027 More
Lafayette$3,493$223 More
Lake Charles$3,631$361 More
Bossier City$2,818$452 Less
Kenner$4,181$911 More
Monroe$2,863$407 Less
Alexandria$3,058$212 Less

Louisiana home insurance discounts

There are several ways to reduce your Louisiana home insurance costs. Many insurers will lower your bill if you purchase more than one type of insurance policy from them. This process – known as "bundling" – can cut your costs by up to 19%, on average, according to Insurance.com’s discount data analysis.

You can also cut your costs by making your home more disaster-resistant. Installing hurricane glass or accordion shutters might net you a discount.

Other possible home insurance discounts include:

  • Installing smoke detectors, a burglar alarm or dead-bolt locks -- 5% each
  • Installing a sprinkler system, and a fire and burglar alarm -- 15% to 20% percent
  • Loyalty discounts – about 4%  on average, after three to five years, and  6% for six years or more

Louisiana homeowners insurance laws and FAQ

How do I find the right insurance company?

To get the right policy, it's important to compare quotes from several homeowners insurance companies in Louisiana. The Insurance Information Institute (III) recommends you get quotes from at least three insurers before settling on a policy.

The Louisiana Department of Insurance (LDI) recommends you look for an insurer that:

  • Is financially sound
  • Has a history of good service
  • Charges a fair rate

The price you pay for home insurance coverage will vary based on a number of factors, including the size and value of your home and its possessions. You also can trim costs by taking steps on your own that range from simply raising your deductible to renovating your home so it is better able to withstand hurricane-force winds.

The LDI website lets you search for insurance companies providing coverage in Louisiana. You can search by company name, insurance type or other criteria.

The LDI website also features a compilation of complaint data by both insurance company and type of insurance. You can access this list when shopping for a homeowners insurance policy. The LDI's complaint index allows you to see how many complaints the LDI has received about a company relative to the number of premiums the company has written.

Companies with a complaint index of 1 have an average number of complaints. Numbers above 1 indicate a greater-than-average number of complaints.

Why do I need flood insurance?

Flood damage is always a risk in Louisiana. In 2016, the Bayou State experienced devastating flooding that ranked as the fourth-most severe flooding event in U.S. history. However, homeowners insurance does not protect you if your home is flooded. Instead, you need to purchase a separate flood insurance policy.

You can purchase flood coverage through the National Flood Insurance Program. A policy will give you $250,000 in coverage for your house, and an additional $100,000 for personal property. If you need more coverage, private insurers might sell you extra protection above those limits.

Such a policy can be a lifeline in the wake of a flooding disaster. After the 2016 floods, more than $1.7 million was paid out in flood insurance claims, and the average claim topped $80,000, according to the Insurance Information Institute.

What is windstorm insurance?

In 2005, Hurricane Katrina reminded residents of Louisiana of the devastating power of storms that arrive from the sea. The storm caused $25 billion in damage tied to 725,000 insurance claims in the state, according to the Louisiana Department of Insurance.

Hurricanes are a potential threat every year in the state, with the Atlantic storm season running from June 1 to Nov. 30.

Louisiana is one of 19 states (plus the District of Columbia) that has what is known as a "hurricane deductible." Also called a "percentage deductible," it differs from traditional types of deductibles and is potentially much costlier for the policyholder.

For instance, if your home is insured for $300,000 and you have a percentage deductible of 2 percent, you will need to cover the first $6,000 in repair costs before your insurer steps in. Louisiana percentage deductibles tied to hurricane coverage typically range from 2 percent to 5 percent, according to the LDI.

Insurance companies in Louisiana determine what triggers a hurricane deductible and when they apply, according to the Insurance Information Institute. In general, triggers go into effect only when the National Weather Service issues a hurricane watch or warning

This period does not expire until a specific time after a storm has passed. A storm's intensity also may play a role in whether a hurricane deductible is triggered.

Although the term "hurricane deductible" is often used generically to refer to windstorm coverage, there are actually three types of deductibles tied to wind policies:

  • Named storm deductible. Triggered when the National Hurricane Center declares a storm to have reached tropical storm strength, with winds of 39 miles mph.
  • Hurricane deductible. Triggered when the NHC declares a storm to have reached hurricane strength, with winds of 74 mph. 
  • Windstorm and hail deductible. This can be triggered when homes sustain damage from any type of wind or storm.

In Louisiana, insurance companies typically cannot increase named storm or hurricane deductibles after a homeowners policy has been in effect for more than three years, according to III. In addition, insurers can only impose one named storm or hurricane deductible each hurricane season.

Hurricane deductibles can bruise your wallet if a storm damages your home. However, there are ways to cut costs. If your home is fortified in a way that protects it from high winds, it is less likely to be damaged. And you might also be rewarded with lower insurance premiums.

For example, you might be entitled to insurance premium discounts if you build or retrofit a home to standards set by the Louisiana State Uniform Construction Code. Improvements that have been shown to lessen windstorm or hurricane damage also might qualify for the price breaks.

Tax deductions also are available, and sales and use taxes might not apply when you buy storm shutter devices.

You can find more information at the LDI website.

What if I can't find wind insurance?

In most cases, wind coverage is part of a policyholder's homeowners insurance policy. However, some homeowners policies exclude wind and hail damage from their coverage. This is especially likely if you live near the coast.

If you can't get coverage through your private insurance company, you will be able to purchase a policy through Louisiana Citizens Property Insurance Corp. This organization provides coverage for homeowners and businesses that cannot get coverage from the voluntary market.

Two types of coverage -- offering both wind and hail policies -- are available, according to III:

  • Louisiana Citizens Coastal Plan. Offers coverage in Zone 5, which is south of the Intracoastal Waterway. This region is particularly vulnerable to hurricane damage.
  • Louisiana Citizens FAIR Plan. Offers coverage throughout the rest of the state.

Typically, policies purchased through Citizens are more expensive than coverage purchased with a private insurance company.

For more on this type of coverage, check out the Louisiana Citizens Property Insurance Corp. website.

What can I do if I can't get homeowners insurance in Louisiana?

As with windstorm insurance, some property owners in Louisiana might find it difficult to secure overall homeowners insurance coverage in the private market. The Louisiana Citizens Property Insurance Corp is the insurer of last resort in the state, and offers policies to those who cannot get coverage elsewhere. For more information, visit the organization's website.

Where do I get claims processing info or file a complaint?

In rare cases, you may end up in a dispute with your Louisiana homeowners insurance provider. If this occurs, you can turn to the LDI for help. The department can investigate your complaint against an insurer, agent or adjuster.

The LDI also can help provide you with consumer information and – if necessary –enforce Louisiana insurance laws. Among other things, the department says it can help with questions about:

  • Cancellation of a policy
  • Nonrenewal of a policy
  • Premiums you are being charged
  • Unsatisfactory settlement of a claim

To file a complaint, visit the LDI website and fill out a complaint form. Typically, you will hear back from the department within a week of filing a claim. You will be asked to send copies of documents relevant to the case.

You will receive status reports as your case progress. It takes an average of 45 days to fully investigate a claim, according to the LDI.

There are several things the department cannot do on your behalf. The LDI cannot:

  • Act as your attorney or providing legal advice
  • Interfere in a pending lawsuit
  • Decide disputes involving questions of fact, such as who is negligent or at fault

For more information, call 1-800-259-5300.

Methodology:

Insurance.com in 2016 commissioned Quadrant Information Systems to field home insurance rates from major insurers in each state for nearly all ZIP codes in the country for 75 coverage levels based on various dwelling and deductible limits. The homeowner profile is a 35-year-old married applicant with excellent insurance score; new business HO3 policy for house built in 2000 with frame construction and composition roof. Other Structures: 10%. Loss of Use defaulted: 10%. Personal Property defaulted: 50%. Guest Medical limit: $5,000. Personal property: 50% of dwelling coverage for actual cash value.