You have chosen a charming house in Louisiana that accommodates your budget and lifestyle. You have signed on the dotted line and can officially claim the title of “homeowner”. What next? If you are a new homeowner, you need to find quality homeowners insurance Louisiana that meets your unique needs.
Why do I need homeowners insurance?
If purchasing a home is a good investment, purchasing homeowners insurance is an an even better one. More than likely, your home is the most expensive asset you will ever own. You need homeowners insurance to protect your home (and your wallet) in case of damage or theft. Basically, it goes like this. You file a claim describing an occurrence of damage, someone comes out to assess the problem, and then the insurance company mails you a check to cover the cost of repairs.  Depending on what’s covered by your policy, you are protected from having to pay out-of-pocket to fix the damage or buy a replacement.
What is included in a homeowners insurance Louisiana policy?
In order to be reimbursed for a loss to your property, you must purchase a policy that covers a given type of loss. The most common types of homeowners coverage in Louisiana are as follows:
- The Basic Form provides coverage for your home and personal property against damage due to fire, smoke, windstorm, lightning, theft, damage from aircraft or vehicles, civil unrest, and comprehensive liability.
- The Broad Form covers the benefits of the Basic Form plus protection of your home and personal property against frozen or accidental water or steam discharge of plumbing, appliances, HVAC systems, building collapse, falling objects, weight of ice, snow, or sleet, and rupture or bursting of water heaters. Comprehensive personal liability is also included.
- The Special Form offers protection against “all risks” with the exception of specified causes like floods or earthquakes. Other structures, such as a garage or tool shed may be covered in this policy, in addition to all within the Broad Form. Damage to or total loss or personal property and comprehensive liability are also covered.
- The Tenants Broad Form does not cover the actual dwelling, only personal property within it.
- The Comprehensive Form covers the dwelling and personal property against all risks except certain perils like floods or earthquakes. This policy is often the most expensive.
- The Special Condominium Form provides the basic coverage of the Tenants Form plus special protection required for owners of condominiums. Only the interior of the dwelling is insured. This form of insurance is not offered at all insurers.
As you can see, there are several instances in which damage can occur that may not be covered by a basic homeowners insurance Louisiana policy.
Additional Coverage
Louisiana homeowners are obliged to ask about hurricane deductibles. Since the area is prone to incurring damage due to these storms, many insurers include a deductible in policies that determines a set percentage that homeowners are required to pay as a result of hurricane damage.
Homeowners insurance policies in Louisiana do not insure damage due to flooding. You must purchase a separate policy at least one month or prior to be covered for flood damage. Contact your local insurance company or the National Flood Insurance Program (NFIP) for a flood insurance policy.
How do I find the best deal on homeowners insurance Louisiana?
Because of Louisiana’s risk of hurricane and/or flood, the average cost of homeowners insurance in the state soars at $1,742 annually. This rate is the second highest in the United States. In South Louisiana rates can be significantly higher. Due to the exceeding cost of insurance in Louisiana, it’s important to shop for the best deals. Here’s how:
- Get the scoop on various (compare at least 3 or 4 at a time) insurance companies in your area by visiting a comparison website or asking for a quote from each insurer online.
- Look for companies with whom you can buy direct without dealing with independent agents, as these can offer greater savings by cutting out the middle man.
- Browse the Louisiana Department of Insurance for lesser-known or smaller companies with competitive rates. If you live in a vulnerable area, such as in the south near the Gulf of Mexico, the state insurance department may be able to help you get special coverage.
- Try to link up automobile and homeowners insurance Louisiana policies, if possible. Companies frequently offer incredible discounts on premiums when you get two policies from them.
- Ask around. No internet search can inform you as well as a neighbor who has been with a certain insurer for a decade or more. A first-hand testimonial can help you avoid a company with slow claims processing or horrible customer service.
- Look beyond the bottom line. Avoid going straight to the premium without carefully examining the components of each policy. The lowest cost policy may leave you underinsured and paying out-of-pocket for damages.
- Consider your unique situation. If you have personal property of high value, it may be wise to purchase a “personal articles floater” with your coverage to insure the current purchase price or appraised value of jewelry or art. Furthermore, if you have a safety hazard, such as lake access or a swimming pool, look into increasing liability protection in the event a visitor is harmed on your property.
It is possible to find quality homeowners insurance Louisiana that suits your needs. Getting the right policy for you requires adequate knowledge, patience, and careful consideration of your circumstances.
2 Point Highlight
If purchasing a home is a good investment, purchasing homeowners insurance is an an even better one.
Due to the exceeding cost of insurance in Louisiana, especially the southern region of the state, it’s important to shop for the best deals.
