Homeowners Insurance in Louisiana

Finding the best homeowners insurance in Louisiana can be a daunting task, especially when looking for affordability, reliability, and friendly customer service.

Homeowners insurance refers to an insurance cover that protects you from losses or damages in your house or home. Getting a homeowners insurance policy means that you will get cover from interior, exterior, and personal assets damage.

There are many homeowners insurance companies in Louisiana, and their rates differ depending on the packages they offer. But from the analysis of different homeowners insurance companies, rates start at around $682 to about $1,350 per year.

That said, let’s look at a few factors that affect the amount of premiums you’ll pay for your homeowner’s insurance.

Unique Laws

Homeowners insurance is not required by law in Louisiana, both by the local and state governments. However, it is essential to note that your mortgage lender might need you to have homeowners insurance to secure funding or get a loan on their homes.

There are instances when some homeowners purchase homeowners insurance but fail to pay their premiums afterward. In this case, your insurance provider will contact your mortgage lender and inform them that you haven’t been paying your premiums. Your mortgage company will advise that you either pay or get a new insurance company, and failure to do so could lead to your home being foreclosed.

Mortgage lenders have so many reasons why they need you to get homeowners insurance before lending you some money. The most important reason is that they want to get assurance that you will repay your mortgage without any difficulties whenever a disaster strikes.

That means you will have to rebuild your home out of pocket if a disaster strikes and you didn’t have an active homeowner insurance policy. So the best advice is to purchase homeowners insurance if you want your losses to be covered when calamities strike.

Climate

Louisiana is prone to a humid subtropical climate with short, mild winters and long, hot summers. If you live in the continent’s southern region, you will likely experience storms in summer and spring. Precipitation is also adequate, with wet and dry seasons throughout the year.

More often, the summers are long, hot, and harsh. In contrast, the winters are short, cold, and wet. And yes, the weather is relatively cloudy throughout the year. The temperature varies from 41 degrees F to 93 degrees F. Temperatures below 28 degrees F or above 99 degrees F are rare during the year.

Thunderstorms, cyclones, and hurricanes are adverse during the early summer and late spring. Often, storms will cause water damage to lowland regions, which are below sea level. April and May experience heavy rains in significant parts of the state.

Louisiana experiences thunderstorms not less than 60 days in the year, with an average of 27 tornadoes. The whole of Louisiana state is at risk of tornadoes, especially the southern location. Tornadoes are chronic from January to March and can severely damage property and communication lines. In 2005, Hurricanes caused more destruction in southeast Louisiana, while New Orleans experienced severe water damage in most of the state.

In 2016, Louisiana faced severe damages as a result of the flood. This was the worst natural peril to hit the US after Superstorm Sandy. According to the National Weather Service, unprecedented levels of rainfall were the cause of these floods. Nearly 140,00 homes, schools, and businesses were damaged in the event. Homeowners insurance will therefore be necessary if you reside in Louisiana and its outskirts.

If you live in one of the Louisiana state cities that experiences some of the natural perils, such as hurricanes, cyclones, thunderstorms, and floods, it might be best to go for homeowners insurance that covers most of these natural perils. However, you will either pay higher premiums or purchase a separate policy covering each of these disasters.

Crime

The overall crime rate is higher in Louisiana (5.4) while the national rate (3.7) for every 1,000 people. Property crime is also higher in Louisiana (32.8) while the national rate (22.0) for every 1,000 people, according to Safewise.

Most people living in Pelican state report that break-ins are their biggest nightmare, with eleven points higher than what’s recorded in the national average. 73 percent of respondents say that break-ins usually occur when they are away from home. 50 percent of respondents feel that break-ins were more likely when they were not at home.

Hammond, with a population of 20,550, is the most dangerous city in Louisiana and falls fourth among the most hazardous violent crime cities nationally with 1,454 per 100k people. Additionally, Hammond is the most hazardous property crime city with 10,335 cases reported per 100k people.

Opelousas is one of the oldest cities in Louisiana and the second most dangerous nationally after Hammond. Opelousas ranks #1 for the town with the most violent crimes, with 2,139 cases per 100k. It is also the sixth most dangerous property crime city with 7,256 cases per 100k.

Addis jumped four places to become the safest city in Louisiana state, and it is essential to note that most cities improved their ranks. For example, Tallulah and Harahan jumped five places to reach the top three safest cities in Louisiana. However, it is with regret that 40 percent of the towns had a drop in their rankings.

Out of the cities, only Tallulah recorded more than three violent crime cases (3.1) for every 1,000 people. Youngsville recorded the lowest violent crime rate, with 0.8 cases per 1,000 people. However, there were more property crime rates (15.4) per 1,000 people.

Cities with high crime rates call for homeowners insurance policies, especially those cities with high property crime. If you live in Hammond, the chances are that you will pay higher premiums because of the increased property crime rate in the area. On the contrary, living in safer areas like Addis will trim down your premiums.

Tips When Buying Homeowners Insurance

1. Should Cover Your Investment

More often, homeowners will shop in the market looking for the lowest premiums. While this is a daunting task, principled agents will clearly explain how the policy works and advise you on essential protections. Building insurance is a significant element of your policy and will go a long way to enhance your protection.

Typically, your policy should incorporate a renewal cost in the event of property damage by a covered incident, such as a storm. In such cases, this amount is higher than the initial purchase price because it approximated the costs to renew your home at present resources and labor costs. Budget cuts to save a few pennies may mean inadequate money to replace your property.  

2. Specifics

When purchasing homeowners insurance, you need to check out some of the specifics of homeowners insurance – the liability, building, and the contents of your policy.

Know what your policy covers and whether or not your policy will cover fire, water damage, natural disasters, and other perils.

Some insurance covers may take care of molds, earthquakes, but these may push your premiums up. So ask your insurer to provide you with details.

Getting homeowners insurance is worth it, especially when you live in areas prone to earthquakes, flooding, or any other natural calamity.

Before purchasing homeowners insurance, know the city you live in – the crime rate, the climate, or state laws to help you choose the best homeowners policy for your home.

3. Deductibles

Deductibles are also a significant factor to consider when you are looking forward to purchasing homeowners insurance, and the best of all is that they are negotiable. Most homeowners insurance companies provide per event deductible or yearly deductible amount. It is also essential to note that deductibles will mostly vary and could accumulate to thousands of dollars.

Maintaining deductibles of $1,000+ can help reduce your premiums. The idea behind this is that losses between $1,000 and $2,000 can be paid off out of pocket if you want to keep your premiums low. Therefore, go for lower deductibles if you need to lower out of pocket risks, but you will pay higher premiums.

4. Liability and Contents

Similarly, choosing the right level of protection for contents and liability is necessary. Again, you need to leverage between sufficient coverage and cost minimization. Usually, contents will cover valuables in your home. For this reason, agents will use a simple approximation and multiply each room in your home by $5000 to $10,000. If you store valuable antiques in your home, a separate coverage or a higher policy is essential. 

On the other hand, liability protects you from injuries or property damage initiated by a third party in your home. Standard policies often insure up to $100,000 per individual and $300,000 per event. If you have other risky components, higher coverage or a separate policy can protect you from high lawsuit costs. 

Our Favorite Homeowners Insurance

Our favorite homeowners insurance…..actually wouldn’t matter to you. Why so? Well, homes are personal. Even as template and plan-built homes become common, no two houses are the same. You, the occupant, will be a different age, have different needs and have a different risk profile from your neighbor.

Only you know best what you need and therefore we best we can do for you is to recommend a tool to help. Juggling all your priorities has been made easier with the launch of the SuperMoney search engine. To be clear, SuperMoney is one of our advertising partners, but we only advertise them as they produce a valuable service. 

You can simply put in your state, your priorities and the features you want from your insurer and you can browse through SuperMoney’s recommended insurers and take your pick regarding which one is best. 

Frequently Asked Questions

1. Does home insurance cover mold?

Most homeowners’ insurance policies do not usually cover mold. However, most insurance providers will only cover mold if it’s related to one of your covered perils. In the case where mold damage results from floods, you will need to get flood insurance cover.

2. Do I have to add a dog to my homeowners insurance?

Yes, you can add your furry friend to your homeowners insurance, but keep in mind that this will increase your premiums. Most insurance providers would deny you coverage if you did not inform them in advance. Buying homeowners insurance means that your insurance provider will cover any dog bite up to a certain amount – between $100k to $300k.

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