Best homeowners insurance in Louisiana | 2024 (2024)

3 Best Homeowners Insurance Companies in Louisiana

After conducting in-depth research, these are Louisiana’s best homeowners insurance providers:

• Allstate: Our pick for extended coverage
• State Farm: Our pick for new homeowners
• USAA: Our pick for military members

According to 2023 homeowners insurance data from Quadrant Information Services, the average cost of homeowners insurance in Louisiana is $2,633, which is higher than the national average of $2,511.25.

Insurance companies consider factors like your area’s risk of natural disasters, property condition and personal characteristics to determine how much you will pay for home insurance. We explained these factors below to help you estimate monthly insurance costs in Louisiana.

• Risk of natural disasters: Louisiana faces a significant risk of natural disasters such as flooding and hurricanes due to its location along the Gulf Coast. If your home is located in a city that has experienced hurricane damage in the past, such as New Orleans, Baton Rouge and Lafayette, insurers may consider it risky to provide you with a policy and charge higher rates.

• Proximity to fire services: Insurers will likely charge higher premiums if your home is farther away from fire stations or hydrants, which can increase the risk of fire damage due to house fires or wildfires. For example, you may pay higher rates if your home is in a rural area such as Acadiana.

• Local crime rates: Urban areas like New Orleans or Baton Rouge generally have higher crime rates than rural locations, which increases the risk of theft and vandalism. Insurance providers may offer more expensive policies to homeowners in such areas.

• Age and condition of your home: Properties in historical areas like the French Quarter in New Orleans or those built with outdated construction materials are generally more susceptible to damage. If you own an older home, you may pay higher insurance premiums.

• Credit score: Insurers use your credit score to assess your likelihood of filing a claim, meaning your credit score can influence your premium. If you do not have a strong credit history, you may face higher home insurance rates.

• Claims history: Insurance providers also look at the severity and frequency of your past claims to determine your monthly premiums. Those who have filed multiple claims in the past may see higher home insurance costs.

While the rich culture, good food and temperate weather make Louisiana hard to resist, the risk of tropical storm damage makes home insurance a must-have in the coastal state. But it’s not the only reason Louisianians file home insurance claims. Here are some potential issues residents face:

• Flooding and storm damage: Costly flash flooding, wind and other home damage often result from the coastal storms and hurricanes that frequently pass through Louisiana.
• Water damage: Extensive water damage, mold and other problems can arise from the tropical storms listed above. The Louisiana Department of Insurance (LDI) offers tips to help you clean up after the storm and avoid further loss.
• Fire and lightning: Listed as the third most common cause of loss in the country by the III, Louisiana property owners are not exempt from fire and lightning damage.
• Crime and vandalism: The property crime rate in Louisiana is higher than the national average, according to the Federal Bureau of Investigation. This exposes Louisiana residents to filing claims for vandalism and lost or stolen property.

Although a common cause of property damage in Louisiana, standard insurance policies in the state do not cover flooding. And while it is a trend for insurers to include a separate deductible for hurricanes and named storms at 2% to 5% of your dwelling coverage, this is not required either. It’s wise to read your policy carefully and include any endorsem*nts you think you need.

Although the average cost of home insurance in Louisiana is higher than the national average, you can lower your monthly premiums by comparing rates before you buy coverage, qualifying for discounts, making home improvements and modifying your deductible. We discussed how you can save on home insurance with a few methods below.

See if You Qualify for Discounts

Most insurance providers create opportunities to save on your policy costs by qualifying for discounts, such as:

• Policy bundling:In many cases, you can lower your insurance expenses if you purchase more than one type of policy from the same insurance provider.

• Claims-free: You can lower your premiums if you remain claims-free for a certain period, which is generally three years.

• Home safety: Many insurers provide a discount if you install safety devices like burglar alarms in your home, as it lowers the risk of theft.

• New home: You can qualify for a discount if your home was constructed recently since new builds are generally less likely to require repairs.

• Good credit: Insurers consider it less risky to provide a policy to customers with a strong credit history and in some cases, offer a discount.

Storm-Proof Your Home

There’s a significant risk of hurricanes and storms in Louisiana, resulting in higher insurance costs for many homeowners. If you want to save on your policy, you can reduce the risk of storm damage by including reinforcing roofs, installing storm shutters and using impact-resistant windows. You might also qualify for a wind mitigation discount, depending on your chosen insurer.

Increase Your Deductible

You can also lower your premium by choosing a policy with a higher deductible. However, it will mean taking more financial responsibility in case of a claim, potentially resulting in higher out-of-pocket costs. Before you decide to increase your deductible, you should speak to your insurance agent to understand your policy terms and how much you could save.

Shop Around

We recommend you compare home insurance rates from multiple providers before making a final decision. Every insurer will evaluate your application differently and shopping around can help you find the best deal.

A standard homeowners policy generally does not cover damage due to floods and hurricanes, which are common in Louisiana. You can instead purchase a separate flood insurance policy through a private insurer or the National Flood Insurance Program (NFIP). A flood insurance policy will cover your property structure and contents against water damage due to flooding.

Wildfires are another risk to homes in rural and forested areas. Although most policies cover fire damage, review your policy terms and limits to ensure sufficient coverage to rebuild your property in case of damage.

Our team surveyed dozens of home insurance providers and created a scoring system to assess and compare each company’s quality and service. Here are the factors that account for our provider scores according to our home insurance rating methodology:

• Coverage (28%): We analyze the comprehensiveness of each provider’s standard home insurance policy and compare optional policy endorsem*nts to determine the quality of coverage.
• Cost (27%): We compare cost data for homes nationwide to assess how competitively priced each provider is. We also consider each company’s available discounts when determining its overall cost of coverage.
• Availability and ease of use (25%): We evaluate each company’s customer service options, such as live chat, a customer support phone line, and multiple channels for filing claims and generating quotes. Similarly, we score providers based on their digital resources, such as a mobile app or online customer portal.
• Brand trust (20%): We gauge reputation by evaluating consumer reviews and third-party financial strength and customer experience ratings, including from J.D. Power, AM Best and customer review aggregators.

Companies with the best customer service exhibit 24/7 availability, useful digital tools and a quick claims-filing process. Providers that offer extensive discount options, endorsem*nts, customizable coverage options and unique features score significantly higher than those that don’t, putting them toward the top of our recommendations to readers.

AM Best Disclaimer