Skip to content

Best Affordable Homeowners Insurance in Louisiana 2022 – Forbes Advisor

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect the opinions or evaluations of our editors.

Getting a reasonable rate on your home insurance is a priority for most homeowners. Shopping around is the best way to find a low-cost policy for the coverage you need. We evaluated the average rate quotes from the large home insurance companies in Louisiana to help you find an affordable home insurance policy.

Comparison of costs of cheap home insurance in Louisiana

Related: The best home insurance companies

Homeowners Insurance Cost Factors

Getting affordable home insurance in Louisiana will depend on many factors, such as:

  • How much will it cost to rebuild your house
  • The types of materials your house is made of
  • The fire classification of your location
  • the age of your house
  • your location
  • Your personal claims history
  • Your home’s claim history (even before you owned it)
  • The amount and limits of your policy coverage
  • Your chosen deductible amount
  • your credit

Related: 10 Ways to Get Cheap Home Insurance

What does homeowners insurance cover?

The average HO-3 home insurance policy covers your home for any issues not explicitly excluded in the policy. Standard exclusions include power outages, negligence, war, nuclear hazard, earthquakes, sinkholes, vermin and insect infestations, and wear and tear.

Your belongings (personal property) are protected against specific “perils” in your standard homeowners insurance policy. Fire or lightning, explosion, riot, tornadoes, theft and vandalism are some of the issues covered by home insurance.

A standard home insurance policy includes these main types of coverage:

  • Living place: This type of home insurance pays to repair or rebuild your home if it is damaged. It also covers attached structures, such as a garage, porch, or deck.
  • Other structures: This pays to repair or replace structures not attached to your home, such as a fence, in-ground pool, or shed.
  • Personal property: This pays to repair or replace your personal belongings after a problem like theft or fire or smoke damage. Your personal property includes your clothing, furniture, apparel, jewelry, appliances, electronics, and other similar items.
  • Responsibility: This pays for property damage and injuries you may accidentally cause to others. For example, if your dog scratches and bites someone, your liability insurance may pay a settlement. Or if he is sued, his liability insurance can help pay a court judgment against him along with the costs of his legal defense.
  • Medical payments to others: This covers minor medical claims made by people who do not live in your home, such as guests in your home, regardless of who is at fault for the injury. For example, if a visitor trips on a loose rug, medical payments coverage may cover any minor injuries they sustain. Coverage amounts are small, like $1,000.
  • Additional living expenses: If you can’t stay in your home after an event covered by your policy (like a fire or tornado), additional living expenses coverage pays for the additional costs. Covered expenses may include a hotel stay, meals out, and other necessary services, such as storage.

Related: How much home insurance do you need?

What does homeowners insurance not cover?

Common exclusions found in your standard home insurance policy include events and issues such as floods, earthquakes, sinkholes, landslides, mudslides, power outages, war, intentional loss, wear and tear, and insect and vermin infestations.

It’s smart to read your policy carefully to make sure you understand what is excluded from coverage.

Most Common Disasters in Louisiana

Louisianans don’t see much variety in the disasters they face. The most common catastrophes homeowners face are hurricanes, floods, and severe storms. Gulf Coast residents have it worse, often bearing the brunt of hurricanes and storm surges.

In 2020, multiple hurricanes hit Louisiana, hitting much of the same area of ​​the state. Hurricane Laura hit Cameron in August and was the 10th strongest hurricane in terms of wind speed to make landfall in the US. Then, six weeks later, Hurricane Delta made landfall just 12 miles from where Laura made it. Due to flooding and overturned vehicles, I-10 and US 90 were closed.

Hurricane Zeta then slammed into Louisiana three weeks later, following much the same path. Once again, homes were damaged, power was out for many, and rain and storm surge inundated neighborhoods along Louisiana’s Gulf Coast. If it was in the path of storms, winds or rain would harass it for weeks.

Louisiana home insurance policies have special deductibles for wind and hail storms, called storms or hurricanes. These deductibles are a percentage of your homeowners coverage and typically range from 2% to 5%. So if your home is insured for $300,000 and you have a 5% deductible, that would be $15,000.

Fortunately for Louisiana homeowners, state law says your insurance company can’t impose more than one special deductible per calendar year. That means if you endured all three hurricanes in 2020, you would only have a hurricane deductible to pay for the damage.

Disasters by month in Louisiana

Historically, August and September have been the busiest months for declared disasters in Louisiana, with 14 each month. May is coming up with 13 events throughout the years.

Disasters in Louisiana by year

Louisiana homeowners face an average of two declared disasters a year. In 2020, one of the busiest years for disasters in The Pelican State, residents faced multiple hurricanes and tropical storms, resulting in six declared disasters.

Flood Insurance in Louisiana

A standard homeowners insurance policy does not cover flood damage. And with flooding becoming more frequent, you may want to consider flood insurance if your property is at risk.

Louisiana residents are no strangers to severe flooding. In May 2021, continuous rounds of storms hit Louisiana dumping up to 15 inches of rain in western Louisiana in a 12-hour period. More than 2,500 homes were flooded or reported some type of damage. Then in August, Hurricane Ida again caused storm surge and heavy rain, causing flooding in many parts of the state.

Many areas across the country experience flooding that is destructive and costly, but is not declared a federal disaster. Here is a summary of the amount of recent flooding in Louisiana.

Government financial assistance after a flood may be insufficient. It’s best to have your own flood insurance that you can trust. Many people who have flood insurance buy it through the National Flood Insurance Program (NFIP), a federal program. Private flood insurance is also available if you shop around.

FEMA’s Individuals and Households Program (IHP) can provide cash and direct assistance after a major disaster or emergency, if you qualify. This program helps people find housing after a problem caused directly by a disaster that is not covered by insurance or other sources.

Earthquake Insurance in Louisiana

Louisiana is an area with relatively low seismic risk, but that doesn’t mean earthquakes can’t happen. The state lies within the Gulf Coast Basin tectonic area, with the greatest threat from an earthquake coming from the New Madrid Seismic Zone.

In April 2021, a 3.1 magnitude earthquake hit Louisiana on the Texas border. Fortunately, the minor jolt didn’t cause much damage.

If you’re nervous about earthquakes and want coverage for earthquake damage, you’ll need to purchase a separate earthquake insurance policy. A standard home insurance policy does not cover earthquakes.

Earthquake insurance generally covers:

  • living place
  • personal property
  • additional living expenses
  • other structures

Earthquake insurance may have a separate deductible from your home insurance, typically between 10% and 25% of the homeowner’s policy limit.

Tips for buying home insurance

Whether you’re looking to switch insurance companies or closing on your first home, you want to shop for an affordable policy without sacrificing coverage. Here are some tips for both longtime homeowners and newcomers:

  • Evaluate your rebuilding costs. Ask a reputable contractor or your insurance agent what it would cost to rebuild your home with similar materials, based on labor costs in your area. You want the amount of your homeowners coverage to be close to this estimate.
  • Consider additional coverage for your personal property. If you have expensive possessions, such as jewelry, antiques, or musical equipment, you may want to consider scheduling personal property to adequately cover them.
  • Learn about the benefits of replacement cost versus actual cash value. Consider replacement cost coverage for your home and belongings to get the amount you need to replace your home and items with new versions. If you’re okay with a depreciated value, then actual cash value is the option for you.
  • Evaluate how much liability coverage you need. You must purchase an amount that matches the value of your assets that could be taken from you in a lawsuit, or at least $300,000.
  • Look for any gaps in coverage. Some home insurance companies offer additional benefits that extend beyond what a standard policy covers. For example, a water or sewer backup add-on can help pay for damage caused by these issues.
  • Research financial qualifications. Check financial strength ratings from companies like AM Best or Standard & Poor’s. Some banks may not finance your mortgage unless your insurance company has at least an “A” financial strength rating.
  • Compare quotes from multiple insurance companies. The cost of the same homeowners policy can vary significantly among insurance companies. If you don’t shop around, you won’t know how much you can potentially save.
  • Ask about discounts. Make sure you get all the discounts you qualify for. For example, you may be able to get a discount for certain home security features or to purchase auto and home insurance from the same company.

Methodology

Average home insurance rates were calculated using data from Quadrant Information Services. Rates are based on a policy with $300,000 homeowners coverage and $100,000 liability coverage.

Leave a Reply

Your email address will not be published.