Louisiana is one state that has seen some of the biggest natural disasters in the past few years. For instance, Hurricane Katrina swept the state leaving behind a lot of devastation in 2005.
And last year was no better; Hurricane Harvey damaged many properties. Moreover, since Louisiana is bordered by the Mississippi River, and the Gulf of Mexico, it’s prone to heavy flooding too. All these factors lead to massive homeowners insurance claims in the state.
A report by the National Association of Insurance Commissioners revealed that homeowners in Louisiana pay almost $700 more in homeowners insurance premiums annually than many other Americans. You’ll be surprised to know that the average premium rate in Louisiana is $1945. As a homeowner, you don’t want to be burdened with heavy premiums and fewer coverage options, right? Don’t worry; we’ll help you find the best homeowners insurance provider in Louisiana.
Top 5 Homeowners' Insurance Providers in Louisiana
Here’s the list of the top 5 homeowners insurance companies in Louisiana:
State Farm is the best and largest homeowners' insurance company in Louisiana. They’ve received excellent ratings for financial backing, customer happiness, and fast claim processing from A.M. Best, J.D. Power, and Consumer Reports.
On comparing the premium rates being offered by State Farm with the premium rates being offered by other home insurance companies in the state, we were surprised to see the difference. Premium rates offered by State Farm are much lower. For instance, if you’re insuring your new $380K-$400K home, State Farm might help you save up to $1000 annually. They also provide you with customization options.
When it comes to financial stability, Allstate has higher ratings than State Farm. They received an “A+” rating from A.M. Best. However, their customer satisfaction ratings from Consumer Reports and J.D. Power are lower. Nevertheless, many homeowners still prefer Allstate over other homeowners insurance providers in Louisiana.
The best thing about Allstate is the variety and extent of discounts offered. They also provide customers with additional sewage backup coverage that you won’t find anywhere else. On Allstate’s site, you’ll find all the tools you need to find a home insurance policy that suits your requirement. However, their premium rates are somewhat higher than the other homeowners' insurance providers in Louisiana.
Liberty Mutual’s ratings are neither too great nor too awful. They’ve got a rating of an “A” by A.M. Best, received a 3 out of 5 score from J.D. Power, and a “very good” rating from Consumer Report.
Based on these results, they have sound financial backing, and their customers are happy.
However, if there is something that draws them apart from other homeowners insurance providers in Louisiana—it’s their MasterThis online training tool. Using the modules, you can learn how to protect your home and extract maximum value. Liberty Mutual offers a long list of coverage options and discounts on alarm systems, home security system, bundled policy packages, etc.
The premium rates are higher for homeowners who live in hazard-prone areas. So, if you’re one of them, choosing State Farm could save your farm.
Louisiana Farm Bureau
Louisiana Farm Bureau is a relatively small homeowners insurance company that has received an “A” rating from A.M. Best. They’ve also received a special endorsement from the NFL legend, Brett Favre.
They’re one of the most highly reputable local providers in Louisiana and provide excellent customer service. So, if you’re only looking for a local provider, we recommend you choose Louisiana Farm Bureau. However, they do not offer some coverage options that national players do.
USAA can be an ideal pick for homeowners in the military or those associated with the military. It may stun you when you learn that they’ve received an “A++” rating from A.M. Best, and a 5 out of 5 score from J.D. Power for outstanding customer service; the highest ever score in the homeowners' insurance space.
Not only this, but they also provide easily affordable premium rates. The only drawback here is that it is only applicable to homeowners in the military, and they offer limited coverage options.
Additional Considerations Before You Commit to a Homeowners Insurance Carrier
So, you’ve gone through the list of the top 5 homeowners insurance companies in Louisiana, and by now, you know what each of them has to offer. However, there are still a few other factors that you need to keep in mind while picking one for your home. Let’s look at them!
Make sure you’re covered with flood insurance. Since Louisiana is highly prone to heavy flooding and hurricanes, it would be a good idea to add it to your policy. However, flood insurance is not covered by most of the home insurance policies. Therefore, we recommend you contact an insurance agent to help you get the flood coverage from the National Flood Insurance Program.
Covered by the LIGA
Check if the insurance company is covered by the Louisiana Insurance Guaranty Association (LIGA). They’re a non-profit, private organization, and come to your rescue if your homeowners insurance provider isn’t paying you enough on the claim. You can use the Louisiana Department of Insurance’s search tool to see if your home insurance provider is covered by LIGA.
Need more coverage?
If a private homeowners insurance provider is not helping, you can apply for coverage through the Louisiana Citizens Property Insurance Corporation. They provide basic coverage options for your home.
Check Satisfaction Ratings
Check the home insurance company’s financial and customer satisfaction ratings from A.M Best, Consumer Reports, and J.D. Power.
Look at Reviews
Talk to other homeowners in Louisiana and ask about their homeowners insurance provider. You can also check third-party review sites to check the reviews and ratings of the home insurance provider you would like to finalize.
Additionally, when evaluating homeowners insurance options, connecting with an experienced local real estate agent is always a good first step.
Agents can provide valuable guidance and advice on what kind of coverage you should be looking for, how much you’ll need given your property type and region within the state, and make recommendations that can help you save on your monthly premium. They can also point you in the direction of quality insurance carriers and trustworthy local agencies or independent agents.
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