Homeowners Insurance Quotes in Baton Rouge, LA

What You Should Know About Home Insurance in Baton Rouge

Back in the late 1600s, explorers observed a reddish cypress pole established as a dividing point between two Native American tribes, and they called the area Baton Rouge, which means “red stick” in French. Hundreds of years later, though a commemorative monument stands at that same spot, there is nothing divisive about this welcoming city.

The population in Baton Rouge experienced significant growth in the 1940s, driven by the availability of wartime employment, and it continued to increase in the 1950s and 1960s thanks to the emergence of its petrochemical industry, which remains the largest industry in the city. Located on a bluff along the Mississippi River with the furthest inland ports capable of handling large ships, Baton Rouge continues to be an important shipping destination. Technology flourished in the city in the 1990s, and the medical field is also very prosperous in modern-day Baton Rouge.

Students make up a significant percentage of the population, with major institutions such as Louisiana State University, Baton Rouge Community College, and Southern University and A&M College located in town. The mixed architecture reflects the early days when the territory changed hands between the French, Spanish, British, and, finally, the United States of America. Talk to an expert agent for help with obtaining the best homeowners insurance in Louisiana to secure your precious piece of this great city.

How Much Does a Homeowners Insurance Policy Typically Cost in Baton Rouge?

Prices of homes vary widely by geographic location. But did you know that the same applies to home insurance costs? Every city and even zip code can have different rates. The table below shows how premiums in Baton Rouge compare to the national average.

Dwelling Insurance Total	Average Annual Cost in Baton Rouge	Average Annual Cost Nationwide
$300K	$2,883	$2,582
$600K	$5,481	$4,140
$1 million	$8,724	$7,380

We arrived at these numbers by using the cost of dwelling coverage, a $100,000 liability and a standard $1,000 deductible.

How Do Home Insurance Deductibles Change Insurance Rates in Baton Rouge?

The relationship between deductibles and insurance premiums is fairly straightforward. When you sign up for a policy, you agree to a dollar amount your insurer can deduct — your deductible — every time they have to pay a claim. That amount could be $500 or $5,000 — it is entirely up to you. If you choose a $1,000 deductible and a fire causes $2,700 in damages, your insurer would only cut you a check for $1,700. In this same scenario, had you chosen a $4,000 deductible, your insurer would not have had to shell out any money at all.

Higher deductibles essentially lower the number of claims you will file and the dollar amount of each claim, entitling you to lower premiums. Lower deductibles do the opposite — they increase your insurer’s risk, which is why your insurer will charge you more for your policy.

Is Home Insurance Tax Deductible in Baton Rouge?

This is a bit of a tricky question that you need to discuss with a tax professional. Generally, your homeowners policy for your primary residence will not land you a tax break unless your home produces income or you use it for work.

For example, if you rent a part of your house to a tenant, work from home, or use part of your house as storage for work, a portion of your premiums may be deductible. If you rent the entire home to tenants or use it all for business purposes, your whole policy may be tax deductible.

Does Baton Rouge Have the 80% Homeowners Insurance Rule?

Insurers have established an industry standard that requires clients to have 80% replacement cost coverage. If it would cost you $350,000 to replace your home due to a fire, then you must obtain $280,000 of replacement coverage. If you do not have this level of protection, you may be penalized when you file a claim.

While this is not a legal requirement, Baton Rouge insurers generally expect you to adhere to the 80% rule, which is something your InsureOne agent will be happy to assist you with when you sign up for a policy.

Bundling Home and Auto Insurance in Baton Rouge

Rates in Baton Rouge are higher than the national average, which leads many residents to price shop and look for discounts. Insurers offer local homeowners who also need car insurance a bundling discount if they get two or more policies with the same carrier.

Bundling your home and auto coverage can save you 5% and sometimes even 25%, depending on your situation. And that is on top of the convenience of being able to pay your bills to one insurer and only having to deal with one carrier for all your policies. When you bundle, you will enjoy a concierge experience as your expert InsureOne prices out your car and home premiums with various carriers to find the best prices and the steepest bundling discounts without compromising on the quality of your coverage.

How Does Home Composition Impact Insurance Rates?

Construction materials vary in cost and in how well they protect your home. Using steel beams in your basement is the best way to ensure your home remains structurally sound. However, they cost significantly more than wooden beams. The same applies to concrete walls versus wood construction.

When determining your premiums, your insurer assesses the protection provided by the materials in your home against elements such as wind, water, and fire to calculate their risk of having to pay a claim. They also estimate the cost of replacing those materials should your house be damaged by a covered event.

What Are the Different Types of Homeowners Coverage Offered in Baton Rouge?

Insurers offer several different types of homeowners policies. You can choose based on the type of unit you need to insure and the level of coverage you want. These are some policies that differ in that each covers a different kind of dwelling:

• HO-3 policy: This is the most common policy for homeowners. It protects the house and belongings from various hazards and provides the owner with liability coverage.
• HO-4 policy: This policy provides liability and similar coverage to the HO-3 but for the contents of a rental unit. The landlord would have to get a separate policy to protect the structure.
• HO-6 policy: The HO-6 covers liability and protection from the walls and inward for co-op and condo owners. The homeowners association needs a separate policy for the structure and common areas.
• HO-7 policy: This policy is tailored toward mobile home and trailer owners. Its coverage is very similar to the HO-3, protecting the structure and contents from similar hazards and providing liability coverage.

What Is the Most Common Type of Home Purchased in Baton Rouge?

Single-family detached homes make up nearly 56% of the housing units in Baton Rouge. Given the high number of college students, it should not come as a surprise that almost 55% of all units in town are rented, as opposed to being owner-occupied.

If you are a tenant, you may not need homeowners coverage, but you will need an HO-4 policy, so you should discuss with an InsureOne agent how much renters insurance you need before occupying your unit.

Which Common Natural Disasters Are Covered by Home Insurance in Baton Rouge?

Located along the Mississippi River and relatively close to the Gulf of America, Baton Rouge has had quite a few natural disasters over the years. These are some of the events that should be covered if one of them damages your home:

• Rain: Baton Rouge gets lots of heavy rain, which can seep through roofs and siding. Your policy should cover you for this type of hazard.
• Wind: Hurricanes and tropical storms are extreme risks in the city, and tornadoes rip through town at times as well. All of these are typically covered by a decent policy.
• Wildfires: Although not very common, Baton Rouge does experience occasional wildfires, which are typically covered under standard policies.