Louisiana Homeowners Insurance

Last Updated on September 29, 2020 by Andrew Lee

You may have a lot of investments under your belt, but none as big and expensive as your home. Not only is it most likely the property you spent the most money on; it is also where you and your loved ones live, so you want to ensure you keep it safeguarded from possible damages and losses.

In the event that a disaster strikes, you can count on your Louisiana homeowners insurance policy to help you cover a great portion of the costs incurred after such an unfortunate occurrence.

Average premiums for homeowners and renters insurance in Louisiana

A report from the National Association of Insurance Commissioners (NAIC) concluded that the average of homeowners insurance premiums in the United States is $1,096.

Homeowners paid an average of $1,822 putting Louisiana in the 3rd place with the highest insurance premiums

Renters, on the other hand, had a median expenditure of $246 making the state the 3rd state in the same ranking

What this insurance is for

Homeowners insurance in Louisiana combines property and liability coverage, which is why it’s also referred to as a “package policy.” When insured homeowners sustain property damage/loss caused by any of the covered disasters, they can file a claim and wait for their insurer to settle with them.

Liability coverage, on the other hand, takes effect when someone else outside of your family gets injured or has his/her property damaged/lost because of something you accidentally and unintentionally did. This insurance protects you from lawsuits and other legal liabilities.

The types of homeowners insurance LA residents can choose from

Before you make a decision on which type of insurance to get, make sure you perform a comparison to have higher chances of securing the most appropriate policy for you.

According to the Louisiana Commissioner of Insurance, residents of the State of Louisiana have six choices when it comes to homeowners/renters insurance. Below is each type as well as a brief description.

  • Basic Form – The most commonly purchased type of homeowners insurance in LA, this provides coverage for both the dwelling and its contents (personal belongings, furniture, clothing, carpeting, etc.).
  • Broad Form – It provides the same coverage as the Basic Form, but with the additional protection from building collapse, malfunctioning plumbing and HVAC systems, as well as faulty water heating systems and household appliances among several other causes of damage. You’ll also receive comprehensive personal liability coverage with this.
  • Special Form – One of the most robust of forms, your insurer will cover you for almost all types of risks with just a few exclusions, such as earthquakes, wars, and flooding. It also provides the same coverages as the Broad Form.
  • Tenants Broad Form – Reserved for renters, it provides coverage only for personal property.
  • Comprehensive Form – The most expensive type of homeowners insurance, according to the Louisiana Department of Insurance, it provides coverage for so many potential perils and losses. It protects the dwelling and its contents from all types of risks with the exception of earthquakes and floods.
  • Special Condominium Form – As the term already suggests, this type of insurance is for condominium owners/renters. Like the Tenants Form, it only insures the contents of the dwelling.

Property damage or loss can create a huge gap in your finances, when you don’t carry sufficient Louisiana homeowners insurance coverage. So rather than put yourself in such a tight situation, it pays to just purchase and maintain the proper coverage amounts, even if you should invest in the minimums available. Read Homeowners Insurance Essentials for more details.