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

 

Cheap Home Insurance in Louisiana Cost Comparison

If you’re searching for home insurance at a reasonable cost, you’ll want to compare home insurance quotes from multiple companies. Home insurance companies assess risk differently, so the price for the same policy can vary substantially among insurers.

Home insurance company Average annual home insurance cost in Louisiana
UPC Insurance
$661
$1,157
$1,460
Shelter
$3,050
$3,745
$4,345
$4,826
Source: Quadrant Information Services, based on dwelling coverage of $300,000

You won’t know which company offers the best price for your specific situation without comparison shopping. But don’t ignore what companies have to offer beyond price. The best home insurance companies will also offer coverages and home insurance discounts that match your needs.

Homeowners Insurance Cost Factors in Louisiana

Obtaining cheap home insurance in Louisiana will depend on many factors, such as:

  • What it’ll cost to rebuild your home
  • The types of material your home is made of
  • The fire rating of your location
  • Your home’s age
  • Your location
  • Your personal claims history
  • The claims history of your home (even before you owned it)
  • Your policy’s coverage amount and limits
  • Your chosen deductible amount
  • Your credit

What Does Louisiana Homeowners Insurance Cover?

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

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

A standard home insurance policy includes these main coverage types:

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

What’s Not Covered by Homeowners Insurance in Louisiana?

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

It’s smart to carefully read your policy to make certain you understand what is excluded from coverage. Understanding your policy will also help you determine how much home insurance you need.

Flood Insurance in Louisiana

A standard homeowners insurance policy doesn’t cover damage from floodwaters. And with flooding becoming more frequent, you may want to consider flood insurance if your property is at risk.

Financial help from the government after a flood may be insufficient. It’s best to have your own flood insurance to rely on. 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 monetary and direct assistance after a major disaster or emergency, if you qualify. This program helps people find housing after a problem directly caused by a disaster that insurance or other sources doesn’t cover.

Earthquake Insurance in Louisiana

Louisiana is an area with relatively low seismic risk, but it doesn’t mean earthquakes cannot occur. The state lies within the Gulf Coast Basin tectonic area, with the greatest threat of a tremor coming from the New Madrid Seismic Zone.

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

Earthquake insurance typically covers:

  • Dwelling
  • Personal property
  • Additional living expenses
  • Other Structures

Earthquake insurance may have a separate deductible from your home insurance, usually between 10% to 25% of the dwelling’s policy limit.

Tips for Buying Louisiana Homeowners Insurance

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

  • Assess your costs to rebuild. Ask a trusted contractor or your insurance agent what the cost would be to rebuild your home with similar materials, based on labor costs in your area. You want your dwelling coverage amount to be right around this estimate.
  • Consider add-on coverage for your personal property. If you have pricey possessions, like jewelry, antiques or musical equipment, you might want to consider scheduling personal property to have them adequately covered.
  • Learn the benefits of replacement cost compared to 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 fine with a depreciated value, then actual cash value is the option for you.
  • Evaluate how much liability coverage you need. You should buy 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 coverage gaps. Some home insurance companies offer add-on benefits that extend beyond what’s covered in a standard policy. For instance, a water or sewer backup add-on can help pay for damage from these issues.
  • Research financial ratings. Check financial strength ratings from companies such as A.M. 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 for discounts. Make sure you’re getting all the discounts that you qualify for. For example, you may get a discount for certain home security features, or for buying auto and home insurance from the same company.