The Best Louisiana Homeowners Insurance Companies
Louisiana has seen some costly natural disasters. The state is still recovering from 2005’s Hurricane Katrina, and last year it took additional damage from Hurricane Harvey. Bordered by both the Gulf of Mexico and Mississippi River, Louisiana is also prone to heavy flooding. All of this can add up to some hefty insurance claims: In 2016, for example, the state ranked third in the country for insured catastrophe losses.
In terms of homeowners insurance, high-risk means high premiums. The National Association of Insurance Commissioners reports that Louisianans will pay, on average, up to $700 more in annual costs than most Americans. This means that you’ll want to carefully compare rates and coverage when choosing a homeowners policy in Louisiana. You don’t want to fork over hefty premiums only to find that you don’t have enough coverage when disaster strikes. On top of that, it’s important to find an insurer that’s easy to work with and financially stable enough to make good on claims.
How We Found the Best Homeowners Insurance in Louisiana
We evaluated Louisiana’s five largest homeowners insurance providers using the same metrics we developed for our nationwide review of the Best Homeowners Insurance. First, we checked A.M. Best financial strength ratings to make sure each company had reliable backing. We then looked at customer surveys from Consumer Reports to gauge their quality of service and claims processes. Lastly, we sized up coverage, compared rates, and tallied discounts to see which providers offer the best policies at the most affordable prices.
The 5 Best Homeowners Insurance Companies in Louisiana
- State Farm
- Allstate
- Liberty Mutual
- Louisiana Farm Bureau
- USAA
Louisiana Homeowners Insurance Reviews
State Farm
State Farm is Louisiana’s largest homeowners insurance provider — and one of the highest-rated companies on the market. It holds a solid financial rating (“A” from A.M. Best), as well as top marks from both J.D. Power and Consumer Reports. These scores are proof of a smooth claims process, timely payments, and overall happy customers.We can see why customers are so happy. When we compared premiums for a variety of scenarios, State Farm consistently quoted some of the lowest rates. If you’re insuring a new $400K home, for example, this company might save you up to $1,000 per year compared to other top companies in Louisiana.
Of course, actual premiums will vary. Your price depends on the amount of coverage you purchase, how many discounts you qualify for, and personal factors like home value and credit score. There is some room for tailoring here: State Farm has a decent selection of additional coverage options (sometimes called “endorsements”), including choices like identity theft protection. It also offers a number of discounts for multi-line policies, burglar and fire alarms, an construction upgrades, among other things — though Allstate and Liberty Mutual both had more discount opportunities in total.
Allstate
Allstate surpassed State Farm with an A+ rating from A.M. Best, though its overall satisfaction scores from J.D. Power and Consumer Reports were a bit lower. Still, there are some things we love about Allstate. First and foremost is its long list of discounts; including savings for multi-line policies, home renovation, burglar and fire alarms, even for setting up auto pay. Allstate also carries some unique additional coverage options, like sewer backup protection, that we didn’t see anywhere else.On top of all this, Allstate has some truly convenient tools for managing your policy. For example, its Digital Locker app lets you create a home inventory that can be used to back up personal property claims. It’s also the only insurer with a tool for comparing common and costly claims by area. Search Baton Rouge, for example, to see that the most common insurance claim is wind, while the most costly claim is liability. This resource will help you understand potential risks to your home and select the right coverage to protect against them.
On the downside, Allstate’s sample rates in Louisiana came back consistently higher than other providers’ — sometimes by $1,000 or more. If you’re considering Allstate, make sure to get additional quotes from one or two other companies and then carefully compare your offers. But remember: Rates alone aren’t make-or-break. Consider your deductibles and coverage with each provider as well.
Liberty Mutual
Liberty Mutual’s ratings fall in the middle of the pack: an A from A.M. Best, three out of five customer satisfaction points from J.D. Power, and a “very good” from Consumer Reports. This company stands out, though, for its industry-leading resources.We’re really impressed with Liberty Mutual’s MasterThis online training modules, which teach you how to maximize — and protect — the value of your home. It also offers a HomeGallery app for cataloging the value of your belongings. In the event that you need your insurer to replace personal property, this app makes the claims process easy.
Like Allstate, Liberty Mutual offers a long list of discounts; for installing sprinklers and fire alarms, opening a multi-line policy, insuring your home for of its total replacement value, and more. The company has a wide selection of coverage options, too — including the unique option to adjust your coverage every year for inflation (while simultaneously getting a discount for having Inflation Protection).
Rates-wise, Liberty Mutual tends to be competitive for low-risk homeowners (people with high credit scores, people in safe areas). But, in our experience, higher-risk homeowners will pay premiums far above average. If you have lower credit or live in a hazard-prone area you might be better off with a provider like Louisiana Farm Bureau or State Farm.
Louisiana Farm Bureau
The Louisiana Farm Bureau received a respectable A- financial score from A.M. Best. The company isn’t large enough to be rated by J.D. Power or Consumer reports, so we can’t draw comparisons there — although it does have one special endorsement from Brett Favre.
Despite its lack of official ratings, the Farm Bureau receives positive reviews online. It seems to live up to the “local provider reputation” for friendly, hands-on customer service. (Since companies like the Farm Bureau have fewer customers than nationwide providers, they can spend more time with each individual policyholder). If you’re interested in working with a local insurer, you should absolutely start your search with the Louisiana Farm Bureau.
That said, this company lacks a few coverage options that most nationwide providers do offer. For example, it doesn’t carry identity theft insurance, which is a fairly common option in the homeowners insurance game. What it does offer are affordable insurance rates, especially for higher-risk homeowners — so If your credit score is on the low end, we highly recommend getting a quote here.
USAA
If you’re associated with the military, you’ll want to look into getting your homeowner’s insurance with USAA. USAA earned an A++ ranking from A.M. Best, the highest score on this list. It even outshined State Farm in terms of customer satisfaction; earning five out of five possible points from JD Power and an “excellent” rating from Consumer Reports.
When we compared sample insurance rates, USAA also tended to be near the cheap end of the scale. In one scenario — a 10-year-old, $200K home in hurricane-prone New Orleans — USAA’s annual premium rates were several thousand dollars lower than some of our other providers’.
The only real drawback we notes was that USAA has fewer optional coverages than the other providers on our list (although some, including identity theft, are included in its basic package). Still, its prices are hard to beat. If you’re associated with the military and looking for a financially stable insurer with excellent customer service, we highly recommend USAA.
Guide to Homeowners Insurance in Louisiana
Start with Louisiana’s insurance comparison tool
Like we said: Your premium is personal. To find the best price, you’ll have to contact insurers directly and request personalized quotes. But before you start calling and filling out forms, check out the Louisiana Department of Insurance’s Homeowners Rate Comparison Guide.
This online tool lets you choose between 12 different “insurance scenarios” — new homes, old homes, wind mitigated homes, owners with low or high credit, etc. — and then select your city to get a list of estimated annual insurance rates. This will help you get a feel for which companies offer competitive premiums for your situation. That way, you’ll know where to start requesting quotes.
Make sure you’re fully covered with flood insurance
Louisiana is a high-risk state for hurricanes, putting homes at risk of flooding and water damage. As a homeowner, you’ll want to be sure that you’re fully covered in these scenarios. But here’s the catch: Homeowners policies typically don’t include flood insurance. If you’re not covered by your regular provider, we recommend looking into the National Flood Insurance Program (NFIP).
How do you figure out if NFIP is the right choice for your home? Ask the agent who’s setting up your homeowners’ insurance policy. You have to apply for NFIP insurance through an insurance agent — you can’t get it directly — so they’ll help you figure out what the best option is and guide you through the application process.
Check providers with the Louisiana Insurance Guaranty Association
The Louisiana Insurance Guaranty Association is a private, non-profit entity designed to function as a safety net in case your insurer becomes insolvent. In other words: If your insurer can’t make good on a claim, the LIGA will step in and provide financial backing.
All of our top picks are covered by the LIGA. If you’d like to check out additional insurers, use the Louisiana Department of Insurance’s search tool. When you search a company and the phrase “Admitted Insurer” appears by their name, they’re covered by the LIGA.
Louisiana Homeowners Insurance FAQ
How much is homeowners insurance in Louisiana?
Because of its proximity to the coast and history of natural disasters, Louisiana is among the most expensive states for homeowners insurance. Premiums in the state average $1,847 per year — well above the national mean of $1,132. That said, your own premium can vary a lot depending on your home’s size, your address, and your assets. This is why we recommend comparing multiple, personalized quotes before you buy. It’s the only way to guarantee you’re getting the best deal on your homeowners insurance.
What if I can’t get homeowners insurance in Louisiana?
Private insurers are sometimes hesitant to insure homes in catastrophe-prone areas of the state, like along the coastline. If private insurance isn’t available your area, you can apply for coverage through the Louisiana Citizens Property Insurance Corporation. This “insurer of last resort” offers basic dwelling and property coverage to people who can’t get it anywhere else — although you’ll have to show that you’ve made a good faith effort to find private coverage before applying for a policy here.
The Best Homeowners Insurance in Louisiana: Summed Up
You might also like
