New Study Ranks Louisiana Among the Most Expensive States for Homeowners Insurance

LOUISIANA - The cost of insurance has been weighing heavily on Louisiana residents for quite some time now. The rising cost of all types - health, auto, home, and others - has been really hard on us all these last couple of years.

The state government has discussed getting involved to bring costs down, though meaningful relief has been slow to materialize. While there have been some small strides made lately, clearly, it has not been nearly enough for most of us to feel a real difference.

In particular, home insurance seems to be the type that has seen significant premium increases recently.

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The proof that it is rough for Louisianians along this front is in the proverbial pudding. According to a new study from ProGuard, a residential plan provider, the data they used show that Louisiana residents pay significantly above the national average for home insurance.

This new data finds that Nebraska residents are paying the most above average for home insurance, with annual premiums $4,163 above the national average. The average annual premium in the Cornhusker State is a whopping $6,587.

How Much Does Louisiana Pay for Home Insurance Compared to the National Average?

You probably can guess that Louisiana is right up there. In the Bayou State, we pay an average annual premium of $6,274, or $3,850 above the national average.

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What exactly is the average cost of homeowners insurance in the US? It's a much more manageable $2,424 per year for $300,000 dwelling coverage.

Why Is Home Insurance So Expensive in Louisiana?

The catalyst for high insurance costs in Louisiana is commonly known. It is driven by the state's risk of hurricanes and flooding. Additionally, the homeowners insurance crisis didn't help, causing multiple insurers to leave the market or go bankrupt, leaving fewer options for residents.

Grand Isle: The Most Expensive City for Home Insurance in Louisiana

By the way, want to guess the most expensive city for home insurance in the state? Not surprisingly, it's Grand Isle. Premiums on that Gulf Coast fishing community are at 218% higher than the state average.

“The frequency and severity of events like hurricanes, wildfires, and floods have significantly impacted insurers' risk assessments, leading to higher premiums for homeowners. And for those who are rebuilding homes, the cost has surged due to supply chain disruptions and labor shortages," said Michael Feeney, CEO of ProGuard.

How Louisiana Compares to the Least Expensive State

One final note. In case you're wondering which state has the cheapest homeowners insurance, it's Vermont, at a relatively modest $827 premium per year.