Home insurance costs in Louisiana 2021

Home insurance costs in Louisiana

 

Making Louisiana your home is a pretty good choice for a variety of reasons. You live in one of the happiest States of America, according to a 2014 report of Harvard and Vancouver School of Economics researchers. Instruction is superb, and lots of job opportunities available; combine that with a low cost of living, and the presence of astonishing nature, then one thing still remains. It’s homeowners insurance, that will take care of making you safe against the perils of this State, the well-known hurricanes, as well as floods and other commoner but less severe issues that can occur. You must have knowledge of what your policy cover and what doesn’t, and ensuring that you buy the right amount of coverages. Then, if you can tolerate the summer climate, you are going to get the most out of life here.

The geography of Louisiana, facing the Gulf of Mexico and with many rivers crossing the State, makes it considerably exposed to the wind and water elements, in all their forms: windstorms (tornadoes and hurricanes), hail, and floods. On top of these, even wildfires are possible. Phenomenons that have created damages and losses in the last two decades, forcing residents to file expensive claims: this has contributed to a constant rise of premiums, especially over recent years, also due to climate change.

The annual home insurance cost for Louisiana is higher than several other States: our analysis found an average premium of $1,696*. This number is greatly variable upon a mix of factors, among which the city where your home is located, proximity to the coast, size and age of the house, amount of coverage selected.

Besides, the company you will choose will take each of those factors into different consideration, that’s why you will find an ample range of prices. We obtained quotes from established and top rated companies: Allstate, Chubb, Liberty Mutual, Farm Bureau Insurance, Progressive, Statefarm, Travelers, UPC, and USAA. They receive the assessments of dedicated institutions: J.D. Power, AM Best, Better Business Bureau, and NAIC which finds a low complaint ratio for the number of policies written.

Here you find premiums for the ten main cities of Louisiana, resulting from averaged quotes. They are intended for a $2,500 deductible.

 

City County Median home value Square ft Premium
New Orleans
Orleans
$100,000
1,150
$2,560
Baton Rouge
East Baton Rouge
$185,000
1,820
$2,100
Shreveport
Caddo
$125,000
1,330
$1,490
Metairie
Jefferson
$90,000
1,280
$2,150
Lafayette
Lafayette
$170,000
1,500
$2,200
Lake Charles
Calcasieu
$170,000
1,600
$1,950
Bossier City
Bossier
$165,000
1,420
$1,775
Kenner
Jefferson
$180,000
1,560
$2,950
Monroe
Ouachita
$120,000
1,600
$1,610
Alexandria
Rapides
$120,000
1680
$1,565

As you can see, there is a significant difference in premiums among cities (and great divergence from the average for this State). Not every house in the list has the same coverage (based on the home value), that depends on the building materials and labor costs for their area; premiums are calculated on home replacement cost, which is to fully cover the cost of repairing or rebuilding in the event of a loss. These sample houses are all furnished with a minimum of three bedrooms and two baths. Their worth is the median value in the reference city; clearly, the Kenner-Metairie-New Orleans metro area is much more costly than elsewhere, despite the coverage being not much diverging from the one needed for homes in the other cities: the capital cities are generally more expensive. Also residing in a different district of the same city will influence the premium.

Which coverages do you need in Louisiana?

 
Your standard homeowner’s insurance covers most of the perils that may arise in Louisiana, but the weather is particularly insidious and some events are extreme, requiring special attention.

Encouraged by a sub-tropical climate, hurricanes are quite likely to manifest, and they can be of the highest category, like Rita, and Katrina. Every kind of windstorm is regularly covered under the ‘wind’ wording in your paperwork, but hurricanes and windstorms require also specific deductibles in Louisiana, which will only apply if reported by the National Hurricane Center, and causing damages to houses. Three kinds of deductibles can be applied depending on the intensity of storms: one for those above 74 mph, another for above 39 mph, and a different one for other windstorms with hail. Those will be all calculated as percentages of the insured value of your home.

Inhabitants of coastal areas may be unable to get insurance even from major companies, who don’t want to undertake the high risk associated with such properties. If that’s your case, you can rely on private specialized companies, or as a last resort option, turning to Louisiana Citizens Property Insurance Corporation, which offers two distinct plans that consist of wind and hail only coverage, for the building and its contents. More information is available on their website, and on the Louisiana Department of Insurance.

Isolated thunders and copious rains that verify through the year are covered as named perils with your basic policy. The roof can be severely damaged, and the consequences would cost you hundreds, if not thousand of dollars.

Floods can easily generate in Lousiana, and they do it frequently. All the winds and heavy rains cause Ocean and the many inland rivers to overcome their natural limits and a lot of disarming damages. Flood insurance is a necessity for the vast majority of houses in this State, although there can be room for exceptions, to be discussed with your insurer: that is a standalone policy that can be bought through a major insurance company or independent agent participating in the NFIP (National Flood Insurance Program). You can know the risk of flood for your home by consulting the Flood Map Service Center available on the FEMA (Flood Emergency Management Agency) website. 

If you live in a moderate-to-low-risk area you may still benefit from their Preferred Risk Policy, which costs an average of $440 a year, depending on location and amount of coverage needed. You can also purchase flood insurance from private local specialized companies: usually, the advantage is more overall flexibility as for coverages and prices, and an average waiting period of two weeks, which is half the one generally (with exceptions) takes with the NFIP.

How much is flood insurance in Louisiana?

 
You can expect to pay anywhere from below $200 to over $1800, with an average of roughly $675, depending mainly on the risk factor associated with your house.

Source: inferred from FEMA’s publicly available data

Hot and humid summers can also be a concern for homeowners. Mold is the consequence of strong dampness infiltrating the walls of your house: does home insurance cover mold? Yes, it is a named peril in a standard policy, but you should demonstrate that it was a relatively rapid process, rather than something that required several weeks or months to appear. In other words, a sudden ad incidental phenomenon, rather than negligence.

Although the wet climate throughout the year, there are drier months when wildfires can develop. According to the Department of Agriculture and Forestry of Louisiana, wildfires occurrence is high by national standards. On its website, you can easily check on the map what is the fire risk in your county: http://www.ldaf.state.la.us/daily-fire-weather/. Rural homeowners and North-Western regions are at higher risk. Fortunately, fire is one of the covered perils in any homeowners policy; you should carefully choose an adequate amount of coverage.

How can you save on home insurance in Louisiana?

 
 Premiums in Louisiana are high for a reason. If you want to pay less for your policy, let your insurer know that you will not file a claim so easily. Take some steps to make your home safer and stronger against natural hazards.
 
  • A very good investment would be to prepare your house against hurricanes: having doors and windows with pressure mechanism, or installing shutters that activate prior to the event; check the continuity of caulking around doors and windows; make sure the attached structures are firmly anchored, and the same applies to the roof (this might require a contractor appraisal).
  • Retrofitting home over time, to mitigate the possible flood damage; if you have the resources, you can opt for elevating the foundation. Both of these have a remarkable effect on the premiums of flood insurance.
  • You can make the building more fireproof as a whole, for instance following the advice on ibhs.org
  • Upgrading some components, or refurbishing your house if it’s older than forty years: a renovated home meets the safety criteria required by insurance companies when they calculate their premiums.
  • Special attention is addressed to the roof: it must be resistant to the strongest windstorms, thunders, and hail. Thus, during its lifetime remember to check it for possible cracks, and take note of its expiration date. A roof in good shape or upgraded will make the difference in your policy cost.
  • Stay safe against property crime: while that is in a decreasing trend in Louisiana, you will be awarded for having all kinds of anti-theft systems.

If possible, it is also advisable to get rid of any potentially dangerous pets: that means a likelihood of a liability claim, which insurers want you to avoid.

Be in the best financial position to tell insurers you will be a good, on-time payer of the installments, and that you will rely on your money for paying damages to your house (instead of asking for their compensation). How is this done? By exhibiting a good credit score, that is to say, anywhere between 670 and 739. If you are below that range, you should try to improve it for aligning to the standard policy rates. On the other hand, having a score over 740 means discounts, or another kind of benefits, depending on the company you chose.

If you are new homeowners, all these moves may be discouraging or not feasible in the first place. But, you can still do these things: comparing quotes from at least three companies, to find the one which best adapts to your demands. You surely want to save, but it is fundamental that you have the bang for your bucks: you may want to find excellent customer service, transparency, and the guarantee to be enough sustained for eventual hard times. 

Increasing your deductible can be a good move to lower the premium, but only if you are disposed to risk a greater sum out of your pocket, in case of damage claims.

Bundling home with car insurance is a great way to save: most insurance companies allow substantial discounts for this option. And if you can stay with the same company over time, you will get benefits.

Now, you have knowledge. Try our calculator to have a quick glance at your annual insurance premium and the amount of coverages suggested for your specific situation. In this way, you can already plan a budget, then you will be ready for getting quotes from the best insurance companies on the market.

*Methodology: we aggregated and averaged multiple quotes for every city of the State, assuming a 35 years old individual, married, with a good credit score. Our effort is to keep data always updated and the most accurate possible, so as to satisfy at best the consumer’s expectations.