Home Insurance in Louisiana

Are you protecting one of your biggest investment? Getting a comprehensive home insurance policy can give you peace of mind that your home is secure. Obrella makes the home insurance policy shopping experience easier than ever before. Get in touch with insurance experts who can walk you through your options from several providers and answer any questions you might have in one simple call. Experienced in the complexities of Louisiana home insurance policies, experts can even bind your policy over the phone.

Cost of Home Insurance in Louisiana

Only Florida has higher annual home insurance premiums than Louisiana’s $1,742. On average, Louisiana residents pay $708 more per year on home insurance than residents of most states.

• Median Home Value: 158,300
• Household Income: 42,406
• Percent of Income on Home Ownership: 27.20%

As a whole, Louisiana residents earn about 15% less than most Americans, but they benefit from housing prices that are 22% more affordable than the U.S. norm. The median household income in Louisiana is$44,164, whereas nationally it’s $52,250. The state’s median home value is $138,900, compared to the U.S. median of $176,700. And homeowners in Louisiana spend 27.2% of their income on housing related expenses, which is slightly less than what most homeowners in American spend. At 66.0%, Louisiana ranks 23rd in the nation when it comes to the percent of owner occupied housing. That’s marginally more than the country’s average of 63.5%.

As a Louisiana homeowner, you know how important having a comprehensive home insurance policy is. Contact an insurance expert today and ask them to start comparing your policy to others to see how yours measures up. Doing so could save you money on your Louisiana homeowners insurance policy.

Keep in mind that where you live in the state will affect your homeowners insurance rates. Residents of Lake Charles will have higher insurance costs than residents of Bossier City, for instance.

How are premiums calculated for home insurance in Louisiana?

Insurance companies look at a range of factors when determining the cost of homeowners insurance policy. These factors include everything from the size and age of your home to crime rates and housing prices in the surrounding community. Premiums can also be affected by environmental factors, such as the likelihood of floods, tornadoes, or earthquakes in your region. Even things like your credit score and whether or not you have a swimming pool or a guest house on your property may affect the cost of your insurance premiums.

What do all of these details have in common? Each of these factors contributes to the amount of risk the insurance company will take on when issuing you a homeowners insurance policy. The higher the risk, the higher the homeowners insurance rates. Thankfully, you can take action to lower these risks. For instance, installing extra security measures like motion-sensor lights, security systems, or surveillance cameras makes it less likely that your insurance company will have to reimburse you for stolen property, which in turn results in lower premiums for you.

Most of the largest homeowners insurance companies offer a multi-policy discount, which will save you money on insurance costs if you choose to bundle homeowners coverage with an auto insurance policy or life insurance policy. There may be other insurance discounts available to bring down the cost of your homeowners insurance premium, so make sure to ask about this when you’re comparison shopping.

What kind of homeowners insurance policies are available in Louisiana?

Most Louisiana home insurance companies offer a range of coverage options; some of which are defined below:

• HO-1: Limited Coverage
  • An HO-1 policy covers damage to your home that occurs as the result of any of the first 10 classified disasters fire or lightning, windstorms or hail, explosions, riots, damage caused by aircrafts, damage caused by vehicles, smoke, vandalism, theft, and volcanic eruption. However, this type of policy is no longer available for purchase in most states.
• HO-2: Basic Policy
  • HO-2 is a basic policy that provides protection against all 16 classified disasters.
• HO-3: Standard, most popular
  • This policy is the most popular due to its comprehensive coverage and relatively few exceptions.
• HO-8: Older Home
  • As homes age, the cost of repairs to the house may exceed the actual market value of the house. With an HO-8 policy, you’ll receive reimbursements for damage on an actual cash value basis, rather than the full cost of the repairs. Moreover, older houses may not be eligible for plans that cover the full replacement cost of the home in the event of a total loss.

Make sure to look closely and what is and isn’t covered by the type of homeowners insurance policy you buy. Additional coverages — such as flood coverage, earthquake insurance, and windstorm insurance — are usually available in the form of add-ons or riders if you need extra protection. (For more information, read our “Securing Your Home: Understanding Florida Flood Insurance“).

What is standard Louisiana homeowners insurance coverage?

Many people think insurance is a one-size-fits-all safety net. The truth is that you will only be reimbursed if the damages to your home are the result of a situation specifically stated in your insurance policy. So, if you neglect to purchase a flood insurance policy, the insurance company has no responsibility to offer funds for flood damage to your property. Read on to learn frequently used home insurance coverage terms to help you navigate the specifics of your policy:

• Coverage A – Dwelling
  • Covers damages to a home and any structures attached to the home. This includes damages to any of the home’s heating system, permanent air conditioning, wiring, or plumbing.
• Coverage B – Other Structures
  • Structures not physically connected to the house are protected under Other Structures coverage. This includes free-standing sheds, fences, guest homes, and detached garages.
• Coverage C – Personal Property
  • Personal Property coverage reimburses homeowners for the value of damaged, lost, or stolen belongings, including furniture, clothing, computers, and TVs. This coverage even extends to items that were not lost, stolen, or damaged on the homeowner’s property such as items in a storage unit.
• Coverage D – Loss of Use
  • While a home is being repaired, Loss of Use coverage will pay for living expenses.
• Coverage E – Personal Liability
  • If anyone sustains injuries on your property and files a suit alleging that you’re at fault, Personal Liability coverage takes care of any financial losses you may sustain.
• Coverage F – Medical Payments to Others
  • Takes care of the medical payments for anyone injured by the homeowner’s pets or anyone injured on the homeowner’s property.

How can you find out more about Louisiana homeowners insurance?

Louisiana Department of Insurance: From addressing insurance coverage questions and concerns in the wake of a severe storm, to providing an online home insurance rate comparison guide, the Louisiana Department of Insurance is a fantastic resource. The Department can also help you determine if you’re eligible for the Louisiana Citizens Assessment state rebate.

Finding the right home insurance policy can be simple. With Obrella, getting the home insurance coverage you need is quick and easy. In one simple call, you can talk about your insurance needs with an agent who has the expertise and tools to help you find your ideal home insurance plan.