Homeowners Insurance Quotes in New Orleans, LA

What You Should Know About Home Insurance in New Orleans

The Big Easy, Crescent City, NOLA, the City That Care Forgot. New Orleans has no shortage of nicknames, each with its own fan base. The Birthplace of Jazz has so many appealing facets to residents and passersby that it is hard to pinpoint a single attribute most responsible for making this city so special.

The soulful live music performances on the streets and at various venues are a delight to the ears. The fun, games, and festivities during carnival season, with the world-famous Mardi Gras as its climax, bring over a month of entertainment and positive vibes throughout the city. The NFL’s Saints and the NBA’s Pelicans give sports fans a release from their everyday life.

The excitement in New Orleans has drawn over 20 million tourists in some years. Unfortunately, though, natural disasters have taken their toll on the city, causing a decrease in homes and residents. Protect your parcel of N’Awlins by reaching out to an expert agent for help with obtaining the best homeowners insurance in Louisiana, so that if anything happens to your home, your insurer will help you recover your losses and get right back into action.

How Much Does a Homeowners Insurance Policy Typically Cost in New Orleans?

Every area is unique to an insurer, and they charge their rates based on the specific local conditions in your neighborhood. This does not bode well for New Orleans, where several natural disasters have caused significant damage to homes and buildings. Therefore, as you can see in the table below, insurance costs for city residents are well above the national average.

Dwelling Insurance Total	Average Annual Cost in New Orleans	Average Annual Cost Nationwide
$300K	$8,946	$2,582
$600K	$17,113	$4,140
$1 million	$26,090	$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 New Orleans?

Although when you have a policy, your insurer will pay for covered damages to your home and belongings, they do not pay for the full loss. This is because you always have a “deductible,” which is an amount you agree to allow the insurer to deduct from the total bill when they pay a claim.

When you sign up for coverage, your agent will ask you how much of a deductible you would like. The amount could be $500, or you could decide to accept a higher amount, like $3,000. Say you go with the higher number, and you have $2,500 in damages from a fire. Your insurer will not be required to give you any money since the total loss is less than your deductible. Had you chosen a $500 deductible, you would have received a $2,000 check from your provider.

Before deciding how much to charge you for your policy, insurance companies consider how much they will have to pay if you file a claim. Since your insurer’s responsibility depends on the deductible amount you choose, a high deductible will score you lower rates, and a low deductible will mean higher premiums.

Is Home Insurance Tax Deductible in New Orleans?

It would be really nice if you could use your homeowners coverage as a tax write-off, but unfortunately, it is not tax deductible. However, if you use your house for work or as a business, you should be able to get a deduction for your home coverage, though you should confirm this with your tax preparer.

So if you have a home office, rent all or part of your house to tenants, or in similar situations, some or all of your premiums may be tax deductible.

Does New Orleans Have the 80% Homeowners Insurance Rule?

Based on this rule, which is an industry standard and not a law, you would have to obtain replacement coverage totaling 80% of how much it would cost you to rebuild your house if it is destroyed by an event that your insurer covers. Therefore, a $400,000 home must have $320,000 in replacement cost coverage since insurers in New Orleans do require you to follow the 80% rule.

Your expert InsureOne agent will ensure that you have adequate coverage to meet your unique needs and the 80% rule mandated by your insurer.

Bundling Home and Auto Insurance in New Orleans

If you get your home and car insurance from the same provider, that is called bundling policies. Given the significantly higher-than-average prices for coverage in New Orleans, residents look to their insurers for discounts to lower their premiums, and bundling your home and auto coverage is one of the first things they may recommend because it can help you shave a significant amount off your policy cost, possibly even 25% at times. In addition to savings, it is also more convenient to deal with and pay one company for all your insurance needs.

Capitalizing on bundling discounts involves pricing out policies with individual providers and then comparing rates while considering all factors. For example, one carrier may offer a steeper bundling discount than the next, but their coverage may be more costly to begin with or may not include everything you need in a policy. However, bundling is not as hard as it seems since InsureOne agents do all of this research for you. Just let your agent know you want to bundle policies, and they will deliver a personalized package of policies at the best prices, accounting for your and your family’s unique needs.

What Weather Affects Home Insurance Costs in Louisiana?

Louisiana gets significantly more hurricanes than most other U.S. states. In recent years and decades, New Orleans, in particular, has suffered an inordinate amount of property damage from some of these and similar events. In addition to wind tearing apart homes, storm surges and coastal flooding have devastated entire neighborhoods. Hail and thunderstorms are also fairly common during various parts of the year.

Some of these conditions have caused homeowners insurance to skyrocket in New Orleans. However, flooding is a more concerning issue because it is not always covered in a standard policy, which means someone could lose their home and belongings to a flood, thinking that they have coverage, only to find out that this particular peril is not covered.

If you live in a flood zone, you must discuss your unique situation with an expert InsureOne agent who will help you get a separate flood policy if necessary.

What Are the Different Types of Homeowners Coverage Offered in New Orleans?

You can customize homeowners insurance to your housing type and preferred level of coverage. There are a variety of homeowners policies you can start with as your base and then adjust them to your needs. Here are some examples of policies that fill a specific need or preference:

• HO-1 policy: If you own an ordinary home and just want the most basic policy available, this policy is the most affordable but provides the least amount of coverage for the structure and possessions.
• HO-5 policy: On the other end of the spectrum, this policy is the most costly and provides the highest level of protection for people who own an ordinary home.
• HO-6 policy: This policy is totally different from the others mentioned. It is specifically for owners of condos or co-ops and covers everything from the walls inward but not the exterior of the unit.
• HO-8 policy: This one is for situations like older homes where the purchase price of the house is well below the cost of replacing it. Such circumstances are not addressed adequately in the other policies and require an HO-8.

What Is the Most Common Type of Home Purchased in New Orleans?

Though single-family detached houses are the most popular type of homes in New Orleans, they only make up about 45% of the city’s dwelling units. Nearly 44% of its high-density population lives in apartment buildings and complexes of various sizes. Both people who live in their own homes and those who rent houses or apartments to others need homeowners insurance coverage, but not the same type. Learn the difference between landlord vs. home insurance to ensure you get the precise coverage you need.

Which Common Natural Disasters Are Covered by Home Insurance in New Orleans?

It is important for New Orleans residents to familiarize themselves with natural disasters and how to protect their homes and belongings financially through a policy, since not all events are covered. Discuss these natural disasters with your InsureOne agent:

• Hurricanes: As mentioned, these are common in the area and are covered by your policy, at least to an extent.
• Flooding: There are different types of flood damage, some of which may not be covered under your standard policy.
• Hail: New Orleans is susceptible to hail between March and June. Damages from hailstorms are typically covered.