Homeowners Insurance in Louisiana

According to the Insurance Information Institute, the average annual cost of homeowners insurance in Louisiana is about $1,967 with the average monthly cost of homeowners insurance in Louisiana at about $165. This makes homeowners insurance rates in Louisiana one of the most expensive in the nation. The average cost of homeowners insurance in Louisiana is that high because of the state’s susceptibility to terrible weather conditions, especially hurricanes. The 2005’s hurricane Katrina left massive destructions in its wake; many properties and life were claimed by the hurricane. The state also receives a high amount of rainfall yearly because of its topography and closeness to the Mississippi River and the Gulf of Mexico. So, it is very susceptible to flooding. The high crime rate is also a contributing factor to the high average homeowners insurance rates in Louisiana. Louisiana is the third most dangerous state in the nation especially in cities like Hammond and Opelousas. Your building is prone to burglary and theft. Homeowners insurance rates vary from city to city and you may pay as much as 76% higher than the state's average in some places. New Orleans is the most expensive city for homeowners insurance in Louisiana, the annual premium is about 76% more than the state average at $2,762. On the other hand, the least expensive city for homeowners insurance in Louisiana is Alexandria with the annual premium cost at 29% lesser than the state’s average. About 47.5% of people living in Louisiana spends more than 30% of their income on utilities and rents. Adding an expensive homeowners insurance to it might seem absurd but you need that coverage for your building and possessions.

Before you settled for a homeowners insurance policy, you must understand what the policies covers and what it doesn’t. This will help you know if you should get additional coverage for some insurance for your home. For example, most homeowners insurance in Louisiana doesn’t cover damage due to flooding – natural or artificial flooding. But Louisiana is susceptible to flooding and your home should be covered against it. For most insurers, you need to get additional coverage for that option. Generally, homeowners insurance contains two sections. Section I provides property coverage and Section II offers liability coverage. Property coverage is divided into several sections that protect your building, other structures and your personal property in case of any destruction. The property coverage also provides a loss of use policy that helps with additional living expenses that are incurred during periods that you cannot live in your house after major damage. Section II is divided into personal liability and Medical payment to others. The personal liability provides coverage for you or any resident in your houses when you are responsible for injuries to others. The medical payments coverage pays for medical expenses of anybody accidentally injured on your property. However, before you settle for any homeowners insurance policy, you must read through and be sure of what it covers and what it doesn’t.

There are several companies offering homeowners insurance in Louisiana, some are cheap. However, cheapness is not the only factor to consider when picking homeowners insurance. The best homeowners insurance companies in Louisiana offer useful and great coverage options, friendly customers services, amazing discounts all mixed with affordability. The top-rated homeowners insurance companies in Louisiana on our Louisiana homeowners insurance companies list include State Farm, UPC Insurance, Louisiana Farm Bureau Insurance, and Allstate Farm. Insurance companies areas of strengths and weaknesses. For example, Allstate farm has the best online homeowners insurance policy but when it comes to customer ratings, they have a relatively high In-state compliant rate, with NAIC score of 1.14 and a J.D Power rating of just 3 out of 5. State Farm is the best rated by most people and is recommended as best for most people. They offer a balance of affordability, great coverage policy, and good customer policy. They have a high customer satisfaction score with NAIC score of just 0.40 and J.D Powers rating of 5 out of 5. However, they offer a lesser discount than some insurers. USP Insurance is known to offer the cheapest homeowners insurance in Louisiana; they charge almost 50% below the state’s average. Their coverage is fairly standard, and they offer additional coverage. Louisiana Farm Bureau has the highest customer satisfaction rate with NAIC rate of just 0.06. But they do not offer many discounts, and they have the highest average rate on the list.