Homeowners Insurance Quotes in Houma, LA

What You Should Know About Home Insurance in Houma

Houma is in the heart of bayou country, with waterways that connect all the way to the Gulf Coast, meandering throughout the town. Boat tours and fishing vessels commonly flow through local canals, passing marshlands and swamps. Just an hour’s drive from New Orleans — or about 1.5 hours by boat — the town has a festive Louisiana spirit of its own.

Until the early 1900s, Houma remained in a secluded area of Louisiana that was devoid of the influences of the outside world. Although times have changed, everything from the dance halls to the Mardi Gras festivities to the eateries celebrates the town’s Cajun Heritage. You can visit the early 1800s Southdown Plantation & Museum to learn all about the sugar cane industry in the region, or stroll downtown to check out its many historic structures. While you are there, do not be surprised if you catch a glimpse of an alligator or crocodile casually floating down a canal.

Whether you own one of the older Houma homes or a fairly new one, talk to an expert agent to ensure you have the best homeowners insurance at the most affordable prices in Louisiana.

How Much Does a Homeowners Insurance Policy Typically Cost in Houma?

Although Houma has an overall low cost of living, insurance prices are well above the national average. Crime rates, natural disasters, and several other factors contribute to these higher premiums. The following table shows how rates in Houma compare to the U.S. average.

Dwelling Insurance Total	Average Annual Cost in Houma	Average Annual Cost Nationwide
$300K	$4,164	$2,582
$600K	$7,961	$4,140
$1 million	$12,450	$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 Houma?

In the insurance industry, profitability is dependent on pricing premiums to reflect the probability of having to pay out claims and determining how much a company might have to pay. A deductible — an amount of money your insurer deducts from the total damages they are obligated to cover when you file a claim — directly affects the insurer’s bottom line.

For example, if you have a $2,500 deductible and file a $2,000 claim, your insurer only pays $500. Had you only agreed to a $1,000 deductible, your insurer would have been liable for $1,500. That is why you pay higher premiums when you have a lower deductible and lower rates when you have a higher deductible.

Is Home Insurance Tax Deductible in Houma?

It would be amazing if your homeowners insurance would land you a tax deduction, but, unfortunately, unless you can claim that it is a business expense, your premiums are not tax deductible. So, if you rent your house to a tenant, use part of it for storage for work, or designate a room as a home office, you could likely get a full or partial deduction. But if you live in and use your house for your own purposes, you would not be able to claim your premiums on your tax return.

Although this is generally how it works, you can run your situation by your accountant to ensure you are not losing out on potential savings on your tax return.

Does Houma Have the 80% Homeowners Insurance Rule?

It may seem interesting to you when your agent discusses how much it would cost to replace your home if it were destroyed by a covered event. The reason this comes up is because most insurers follow the 80% rule, which is not a law but an industry standard that requires you to insure your home for 80% of its replacement cost.

A house that costs $200,000 to replace would need $160,000 in coverage. This is not something you need to concern yourself with, though, because your agent will guide you to ensure you comply with the 80% rule so you do not get penalized when you file a claim.

Bundling Home and Auto Insurance in Houma

Although homeowners policy rates are above average in Houma, if you own a vehicle and also need car insurance, you can be proactive and save up to 25% off both policies by bundling. Similar to other sectors where you might get a better price for buying in bulk, the insurance industry rewards you for bundling your home and auto coverage, which simply means getting both policies from the same insurer.

The process is simple for you because, although there is a lot of effort involved in maximizing your savings through bundling, your InsureOne expert does all the work so you do not have to. Your agent will compare prices with several carriers. Then, they will check what these various top-tier insurers will charge you after factoring in a bundling discount. Finally, they will deliver a customized package of policies with the best coverage based on your requirements at the best prices available.

How Does Home Composition Impact Insurance Rates?

When you file a claim for damage to your home, your insurer will estimate the damages and pay for you to repair or replace them. That is why, when you sign up for a policy, your home composition makes a huge difference — if your house was constructed with expensive building materials, your insurer would have to pay more when you suffer a loss. Another factor is how easily the material will get damaged by covered events — the better protection it provides, the less they will charge you.

From your roofing to the foundation, frame, and even the siding, insurers base pricing on how well it will withstand fires, hurricanes, and similar events, as well as the cost of replacement. In some cases, a more expensive composition may provide better protection, but not necessarily. This is why your InsureOne agent may ask you about the various materials that make up your home.

What Are the Different Types of Homeowners Coverage Offered in Houma?

Ever hear terms like HO-1, HO-2, HO-3, etc.? While you do not have to concern yourself with them much, they are the names of the eight different types of homeowners policies insurers offer. Some vary by the coverage level they offer, and some provide protection based on the type of dwelling unit or ownership arrangement you have. Here are examples of how unique each policy type can be:

• HO-3 policy: If you own a house in its entirety, whether that is a single-family, multi-family, attached, or detached, this policy protects the home and its contents.
• HO-4 policy: If you rent any type of apartment or home, this policy protects only your belongings — your landlord would have to get their own policy to protect the unit itself.
• HO-6 policy: If you have a condo or co-op, this policy protects the walls and everything in the unit. Your HOA would have to get a policy to cover the structure and common areas.
• HO-7 policy: If you own a mobile home or something similar, this policy covers the structure and your possessions, much like the HO-3 does for other types of homes.

What Is the Most Common Type of Home Purchased in Houma?

In Houma, a staggering 83% of the more than 13,500 dwelling units are single-family detached homes. Many of the houses in the city are very old. In fact, more than 8.5% of the homes in town were built before 1939, and an additional almost 37% were built before 1970. In many cases, replacing your Houma home due to damage may cost more than you paid for the house. You can ask your agent to discuss how your home’s location and age affect your homeowners insurance coverage rates.

Which Common Natural Disasters Are Covered by Home Insurance in Houma?

Natural disasters are pretty well covered in most standard policies. Homeowners have to adjust their policies based on the types of incidents that may occur in their area. Here are some of the natural disasters that may happen in Houma:

• Tornadoes: Though not located along the Gulf, Houma is in close enough proximity to get hit by several tornadoes a year.
• Wildfires: Although not all that common in Houma, dry conditions and hot weather make the town vulnerable to the occasional wildfire.
• Floods: Storm surges, rising sea levels, and low-lying terrain all contribute to flooding in Houma. Ask your agent how to ensure you are covered for floods.