Home Insurance Basics in Louisiana

Why Homeowners Insurance Is Critical in Louisiana

Louisiana homeowners face a unique combination of risks: hurricanes, tropical storms, severe thunderstorms, hail, tornadoes, and flooding. The Shreveport-Bossier City area may be inland, but it's not immune — the Red River and area bayous create real flood exposure, and the region sees its share of severe weather every year.

A well-structured homeowners policy is your financial safety net. But not all policies are created equal, and many homeowners discover their coverage gaps only after a claim.

What a Standard Homeowners Policy Covers

Dwelling Coverage (Coverage A)

Covers the physical structure of your home — walls, roof, floors, built-in appliances — against covered perils like fire, wind, hail, lightning, and vandalism. Your dwelling limit should reflect what it would cost to rebuild your home from scratch, not its market value.

Other Structures (Coverage B)

Covers detached structures on your property — fences, sheds, garages, carports. Typically set at 10% of your dwelling coverage automatically.

Personal Property (Coverage C)

Covers your belongings — furniture, electronics, clothing, appliances — if damaged or stolen. Be aware of sublimits on high-value items like jewelry, firearms, and art. You may need a scheduled endorsement for full coverage on valuables.

Loss of Use (Coverage D)

If your home becomes uninhabitable due to a covered loss, this pays for temporary housing and additional living expenses while repairs are made.

Personal Liability (Coverage E)

Protects you if someone is injured on your property or you accidentally damage someone else's property. Covers legal defense costs and judgments up to your policy limit.

Medical Payments (Coverage F)

Pays minor medical expenses for guests injured on your property, regardless of fault. Helps avoid small claims from turning into lawsuits.

What a Standard Policy Does NOT Cover

• Flooding — requires a separate flood insurance policy
• Earthquake damage — requires a separate endorsement or policy
• Normal wear and tear — maintenance issues are not covered
• Mold — often excluded unless caused by a covered peril
• Sewer backup — usually requires an endorsement
• Business equipment at home — home-based business property may be excluded

Replacement Cost vs. Actual Cash Value

	Replacement Cost	Actual Cash Value
How it pays	Full cost to replace/rebuild	Replacement cost minus depreciation
Example: 10-year-old roof	Pays for full new roof	Pays fraction of new roof cost
Premium	Higher	Lower
Recommendation	✓ Strongly preferred	Only if budget is very tight

How Much Coverage Do You Need?

Your dwelling coverage should be based on the replacement cost of your home — the cost to rebuild it with similar materials at today's labor and material prices. This is different from your home's market value or what you paid for it.

Construction costs in Louisiana have risen significantly since 2020. If your policy hasn't been reviewed recently, your dwelling limit may be outdated.

Louisiana-Specific Considerations

• Wind and hail deductibles — many Louisiana policies have a separate, higher deductible for wind and hail claims
• Flood zones — even in Shreveport, some properties are in designated flood zones requiring flood insurance for a mortgage
• Older homes — homes with older roofs, knob-and-tube wiring, or cast iron plumbing may face coverage restrictions or surcharges
• Trampoline and pool liability — these are "attractive nuisances" that can affect your liability coverage and premium

Tips for Getting the Best Rate

• Bundle with your auto policy — typically saves 10–20%
• Install security systems, smoke detectors, and deadbolt locks
• Update your roof, electrical, or plumbing — newer systems mean lower rates
• Increase your deductible if you have the savings to cover it
• Review your policy annually — coverage needs change as your home's value changes