House Insurance in New Orleans and Metairie, Louisiana – Why Is It So Expensive?

Why is house insurance in New Orleans and Metairie, Louisiana, so expensive? There are several factors that impact house insurance premiums such as real estate values, construction costs, and natural disasters.

The last 10 to 15 years have not been kind to New Orleans and Metairie, Louisiana. Hurricane Katrina and Hurricane Rita ravaged the area during this time, which consequently pushed up the cost of house insurance. Finding affordable house insurance is a real challenge since many private insurers have left the region. Many homeowners get insurance from the expensive state-run pool, called the Louisiana Citizens Property Insurance Corp., which charges more than private insurers. It’s important to know the facts about  home insurance so you can make the best decision in protecting your property.


Facts about Insurance in Louisiana

Louisiana has the second most expensive rates for homeowners insurance in the United States, according to the National Association of Insurance Commissioners. Residents of Louisiana pay premiums worth an average of $3,742 a year for their home insurance. The premiums in Louisiana are 70% higher than the national average, mainly because there are a limited number of insurers operating here. The lack of competition among the insurance companies has effectively pushed up the rates.

Many experts have suggested that the Louisiana state insurance department has to take another look at the computer hurricane models used by insurance companies to justify higher rates. Even so, there is a lot you can do to bring down the cost of your house insurance.

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How can you get better house insurance rates in New Orleans and Metairie, Louisiana?

Tip #1: Shop around and look for the best quotes. You can save hundreds of dollars by hiring an insurance agent to find the best quotes for you. However, remember a lower quote may mean a lower coverage. Pick insurers that offer great customer service and have a solid reputation in the area.

Tip #2: Raise your deductible from, say, a $1000 deductible to a $2500. This can help you save money when you need it most.

Tip #3: The more claims you file, the higher your premiums will be. So file claims only when necessary. Do not file claims for a trivial reason.

Tip #4: Have a great credit score. Insurance companies judge customers on the basis of their credit score and offer lower premiums to those with solid credit ratings.

Tip #5: It helps to have a longstanding relationship with an insurer.  Many insurers reduce the premium by around 5% if you remain a policy holder with them for at least 3 to 5 years and by 10% if you stick with them for 6 years or more.

 Tip #8:  Ask for discounts. For example, it’s possible that you will get lower rates if you have a home business. If you work in your home, your insurer would probably be willing to give you a favorable discount on your home insurance.

Tip #9: You can do things such as weatherproofing your home better or installing storm windows, deadbolt locks, and more sophisticated security systems. Talk to your insurer and find out what would get you the best discounts on the house insurance. Insurers like it when customers install top-rated security systems or automated sprinkler systems in their homes that can keep a fire under control.

For the affordable house insurance in New Orleans and Metairie, Louisiana, trust only the TWFG Landeche Insurance. I’m an independent insurance agent based in Metairie, Louisiana, so I can shop around and get you the best rates and house

Visit my Homeowners page for more information.