Homeowners Insurance Quotes in Lafayette, LA

What You Should Know About Home Insurance in Lafayette

Lafayette lies just 55 miles west of Baton Rouge and about 70 miles north of the Gulf. The city boasts an economy based on the oil industry, in addition to a host of flourishing businesses in various sectors, though — keeping with its roots — it still has a strong agricultural presence. Lafayette is the home of the University of Louisiana at Lafayette and its nearly 20,000 students and takes pride in its NCAA Division I Ragin’ Cajuns teams.

Originally a French-style town founded primarily by Arcadians in the late 1700s, Lafayette is now a multicultural city that maintains a somewhat Cajun feel with a dash of Creole vibe. Many natural streams and canals throughout Lafayette flow to the Vermilion River, which snakes through the southern part of town as it makes its way to the Gulf. The city is a vibrant spot that knows how to throw a party, with events like its annual Mardi Gras clearly showcasing its energy.

Your home in Lafayette is well worth protecting with a home policy, so 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 Lafayette?

Lafayette does not have the lowest rates when it comes to a homeowners policy. Because of many local factors insurers have to account for, premiums are higher than the national average, as you can see in the following chart:

Dwelling Insurance Total	Average Annual Cost in Lafayette	Average Annual Cost Nationwide
$300K	$3,242	$2,582
$600K	$6,300	$4,140
$1 million	$9,971	$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 Lafayette?

Deductibles certainly affect premiums in Lafayette, and for good reason. When you file a claim, your insurer does not pay for all your damages. They deduct an amount called a deductible that you choose when you sign up for your policy. You can decide to set your deductible at $500 or $5,000 — it is entirely up to you.

But if you think about it, choosing a low deductible, like $500, for example, is very much to your advantage because if you have a $4,000 claim, your insurer would cover $3,500 of that, and you would only have to use $500 of your own funds. In contrast, with the same claim amount and a $5,000 deductible, your insurance company would not have to pay anything since the amount of damage is less than your deductible.

Because high deductibles mean less responsibility for your insurer, they reward you with lower premiums for agreeing to a high deductible. The opposite is true as well — choose a low deductible, and your policy will be more costly.

Is Home Insurance Tax Deductible in Lafayette?

Do you have tenants in a second unit in your house? Do you have a dedicated space you use for work, such as a home office or a storage area? If so, you might be able to deduct a portion of your premiums on your taxes.

If the whole house is used for income, for example, to rent to tenants or a business, your entire policy cost may be tax deductible. But if you do not use the house for a business purpose, in all likelihood, your homeowners policy will not land you a break on your taxes.

Does Lafayette Have the 80% Homeowners Insurance Rule?

Many people have no idea if it would cost $200,000, $300,000, or $400,000 to replace their home after a fire or a similar event. But because of an industry standard known as the 80% rule, your agent has to estimate that number when they sign you up for a policy. Although it is not the law, insurers in Lafayette and most other parts of the country want to ensure that you have coverage for 80% of the replacement cost of your home.

So if your agent concludes it would take $250,000 to rebuild your house, they would tell you that you need $200,000 in replacement cost coverage.

Bundling Home and Auto Insurance in Lafayette

Just because insurance rates are relatively high in Lafayette does not mean you will automatically pay more than the national average for coverage. There are many ways to reduce your premiums, including by bundling your home and auto coverage. Bundling means getting more than one policy from the same insurance provider. In addition to making your life easy by only dealing with a single insurer when you sign up for a policy and when you pay your bills, the company will show its gratitude for giving them the extra business by reducing your premiums by as much as 25%.

Bundling entails pricing out your homeowners and car insurance with multiple top-tier providers and checking which company will offer the lowest cost and the highest bundling discount. That might sound like a lot of legwork, but it is actually included in the concierge services InsureOne provides. Your expert agent will do all that work, so you do not have to, and will deliver a customized package of policies that serve your unique needs at affordable prices.

What Factors Do Insurance Companies Consider When Setting Rates?

It would be difficult to find two policies with rates that are exactly the same. The reason for this is that every home, location, and homeowner is unique.

Below are some examples of what insurers look at when setting your rate, which should explain why rates vary so much:

• Coverage levels: You may have the $250,000 same house as your neighbor, but if they only want $200,000 in coverage and you obtain $250,000, your rates will be higher because of the increased liability for your insurer.
• Construction materials: If you live in a hurricane area and your home is framed with steel beams, you might pay less than your neighbor whose house has wood construction and is more susceptible to damage from natural disasters.
• Crime rates: Your neighborhood may have lower crime rates than your friend’s area, just one zip code away. Since your policy covers vandalism, your insurer is taking on less risk with your coverage, so they will give you a better rate.
• Surveillance equipment: Even if your zip code has a high crime rate, that does not mean you will be subject to the highest premiums. Installing a surveillance system will deter criminals and lower your insurer’s risk, which can land you a better rate.

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

There are lots of decisions to be made when you obtain a policy, one of them being which of the eight different types of homeowners policies to get. The decision will depend heavily on the level of coverage you desire, the kind of residence you live in, and whether you own or rent.

These are some examples of options available to you:

• HO-1 policy: If you have a mortgage, many banks will not accept an HO-1 because it only covers your home for a few types of natural disasters and does not provide liability coverage if someone gets hurt on your property and sues you.
• HO-3 policy: This policy covers you for more types of perils. It also adds coverage for the contents of your home and liability. The HO-3 is very popular because of its affordability and coverage level.
• HO-5 policy: The HO-5 is comprehensive in the types of damages it covers and also generous in how it reimburses homeowners for their losses. Many insurers do not offer this policy because it is above their risk threshold.
• HO-6 policy: The above policies are all for people who own homes in their entirety. Condo and co-op owners would get the HO-6, which covers the interior of their unit and provides a similar coverage level to the HO-3.

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

Of Lafayette’s 52,480 dwelling units, 64.32% are single-family detached houses. Lots of these — a staggering 10.91% — are vacant, which is not good because vagrants can steal cabinets, piping, and other valuable contents of unoccupied homes. Over 75% of the houses were built before 2000. If you buy a vacant home that is in disrepair or an older home that needs updating, make sure to read up on how to protect your home renovations with homeowners insurance coverage.

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

As a homeowner, you should get to know which natural disasters are common in your area to ensure your policy covers them. If not, you may be able to get separate coverage or an addition to your policy to protect your finances from disasters that are not covered.

The following are some perils to look out for in Lafayette:

• Flooding: Lafayette is in a low-lying, wet area with underground accumulation and several bodies of water that can overflow. Ask your agent to help you get flood coverage because it may not be included in a standard policy.
• Hurricanes: Like many other cities in Louisiana, Lafayette is subject to the wrath of heavy wind events like hurricanes, some of which can cause damage to homes. Just about any standard policy should cover these.
• Rain: The city gets over 62 inches of rain yearly, which is well above the national average. If your roof leaks or moisture gets through your siding, your homeowners policy will typically cover the damage.