The average yearly cost of New Orleans home insurance is $6,739 for a $300,000 policy with a $500 deductible, which is much higher than Louisiana’s average of $4,384. Encompass, State Farm, and Foremost have the cheapest average home insurance premiums in New Orleans.

New Orleans is one of the top five U.S. metropolitan areas at risk for storm surge and hurricane winds, which explains the higher rates.1 You’ll likely need to purchase homeowners insurance and separate flood insurance.

Here’s what you need to know about finding cheap home insurance in New Orleans, including how to compare quotes and what coverage offerings to look for.

Best home insurance companies in New Orleans

You have dozens of options for New Orleans homeowners insurance, whether you’re looking for a basic plan that covers roof damage or a policy with greater personal property coverage and personal liability coverage. The best home insurance company for you will offer the amount and type of coverage you need for a price that aligns with your budget.

Start your search with four of the best home insurance options in New Orleans: Encompass, State Farm, Foremost, and Centauri Insurance.

Cheapest rates: Encompass

Best insurer for bundling insurance products: State Farm

Best insurer for rebuilds and replacements: Foremost

Best insurer for storm experience: Centauri Insurance

Cheapest home insurance in New Orleans

Encompass is the cheapest home insurance company in New Orleans, with an average annual home insurance premium of $2,624. Keep in mind that the cheapest price doesn’t always mean it’s the best coverage for your needs. Always compare prices and coverage options when choosing a home insurance company.

Here are some of the cheapest New Orleans home insurance options.

Cost of homeowners insurance in New Orleans

The average cost of home insurance in New Orleans for a $300,000 residential dwelling coverage policy is $6,739. Homeowners in the area face high rates due to a high risk of damage from storm surges and hurricane winds. But insurance quotes for your property ultimately depend on a number of factors.

Insurance companies consider a number of unique factors when determining home insurance premiums, including:

• Location

• Home’s age

• Construction of the home

• Proximity to fire stations

• Discounts

• Deductible limit

• Scope of insurance coverage

• Coverage level

• Crime rates in the area

• Credit history

Cost of homeowners insurance by dwelling coverage amount

Dwelling coverage is insurance for the physical structure of your home. It can cover the cost of rebuilding or repairing it. The dwelling coverage amount you select for your policy will influence how much you pay for the coverage. Less coverage comes with a lower premium, and vice versa. The greater the covered amount, the greater your premiums will be.

Compare the annual cost of homeowners insurance in the U.S. by dwelling coverage limits below.

Cost of homeowners insurance by deductible

A home insurance deductible is how you and an insurance company share claims risk. When you file a claim, the insurance company will have you pay a deductible before it’ll cover the rest of the expense.

Most insurance companies will let you choose your deductible amount. A lower deductible increases premium rates, but a higher deductible can decrease monthly premiums because you’re electing to contribute more when you file a claim.

The following table shows how deductible amounts influence average annual premium rates for a $300,000 dwelling coverage policy in New Orleans.

How to get cheap homeowners insurance in New Orleans

Louisiana homeowners insurance costs can add up, especially when you consider that the state has a named storm deductible and a hurricane deductible that may increase your overall repair or replacement costs after a peril like tropical storms.5

Here are a few ways you can save on home insurance in New Orleans:

• Understand what you’re paying for. The best way to ensure you’re paying for the right amount of coverage is to understand what your policy does and doesn’t cover. Review your policy with your agent and make adjustments if necessary.

• Qualify for discounts. Discounts are a popular way to save on home insurance costs. Insurance companies may offer discounts for newer homes, certain construction materials, home security systems, bundling, and more.

• Ask about storm-mitigation incentives. Proactively trying to protect your home from sudden and unexpected damages like storm surges can help you lower your overall costs. Storm-mitigation incentives are available to Louisiana homeowners. These incentives include insurance premium discounts through an insurance company, as well as state tax deductions extended through the government.

• Review your policy limits and shop around. It’s always a good idea to review your policy and see if you have any potential savings available. If your personal possessions have decreased in value, you might not need the extent of coverage that you have. If you don’t believe you need to make any changes to your existing policy, you can shop around and compare rates to find the cheapest homeowners insurance policy available for that coverage level.

Louisiana homeowners insurance rates by city

Home insurance rates vary by state, city, and ZIP code, which is why your home in New Orleans and a home in Baton Rouge may have significantly different rates for the same size or value of property.

Louisiana homeowners face a risk of floods and wind damage from hurricanes, but severity can vary by location. New Orleans’ position of only a few feet above sea level adds to the threat of flooding. Crime rates can also influence rates, and New Orleans has high rates of property crime compared to other cities in the state.6

The table below highlights how average annual premiums for a $300,000 dwelling coverage policy with a $500 deductible vary by city in the Crescent State.

How much homeowners insurance do you need in New Orleans?

Louisiana state law doesn’t require property owners to purchase a homeowners insurance policy. But most homeowners with a mortgage in New Orleans have a homeowners insurance policy to meet the requirements of their lender.

Unless you purchase your home in cash, your mortgage lender will almost always require that you maintain a minimum amount of homeowners insurance on your home for the length of the mortgage term. Since most homes in New Orleans are under flood risk, you’ll likely need to take out a separate flood insurance plan on your mortgaged home as well.

Experts recommend that homeowners should purchase between $300,000 and $500,000 in liability coverage at least, but most homeowners policies start with a minimum of $100,000 in liability insurance.7

What are some of the biggest risks when owning a home in New Orleans?

Louisiana is under threat of multiple natural disasters, some of which have a higher predicted rate of affecting New Orleans. Tornadoes and winter weather, for example, have a lower instance of happening, whereas coastal erosion, tropical cyclones, and subsidence have an almost certain recurrence probability.

The following perils continue to affect homes in New Orleans on a regular basis: