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Landlords in Louisiana understand the benefits of having insurance. It protects their properties and belongings, but it won't cover everything. For example, what happens when a tenant's things are damaged because a pipe burst or there was a fire?
Your landlord's insurance won't cover the tenant's things, so it might be wise to require them to get renters insurance.
The Commissioner of Insurance in Louisiana recommends every tenant get renters insurance, even if they don't think they need it. You can tell your tenants about this helpful pamphlet so that they understand why you're mandating it.
Are you ready to learn about renters insurance in Louisiana? Understanding what it is, what it does, and how it works will be worthwhile because you can explain it to your tenants. Let's get started.
What Is Louisiana Renters Insurance?
In a sense, renters insurance is a security blanket for all of the tenant's things. It covers the items they own, such as laptops, bicycles, televisions, bedding, and everything else.
Though landlord's insurance covers any personal property you have on the premises and the structures on the land, it won't protect a tenant's items. They will need renters insurance to cover their things.
Average Cost of Renters Insurance in Louisiana Per Year
The average price tenants will pay for renters insurance in Louisiana is about $433 per year, which is roughly $36 per month.
However, the renters insurance rates they pay can change based on how many items they own, how much coverage they want, and more. Therefore, it's wise to suggest that they get multiple renters insurance quotes before deciding on one company.
How Much Does Louisiana Renters Insurance Cost (Based on Popular Cities)?
According to ValuePenguin, tenants in Shreveport will likely pay cheaper renters insurance rates than those in Marrero, Metairie, and Harvey. Let's check out the numbers:
- Shreveport - $347/year
- New Orleans - $497/year
- Metairie - $530/year
- Marrero - $530/year
- Lafayette - $425/year
- Harvey - $530/year
- Baton Rouge - $421/year
Does the State of Louisiana Require Renters Insurance?
Most people wonder if they're required to buy renters insurance. Though the state doesn't mandate it, landlords can in the lease agreement. It's wise to do so because if their items are damaged after a covered event, they will get reimbursed for their cookware, linens, clothing, and everything else.
Likewise, renters insurance will offer liability coverage for when tenants accidentally cause damage or injury to others.
What Does Renters Insurance Cover in Louisiana?
Louisiana is well-known for being close to the ocean. Therefore, it's possible to see hurricanes and tropical storms. A standard renters insurance policy covers most storm and water damage, but people might need a separate policy for strong winds, flooding, and earthquakes.
Personal Property Coverage
Personal property coverage will cover the loss of the tenant's belongings if they're damaged or stolen inside or outside the home. For example, a laptop was stolen from their favorite coffee shop while they got a refill on their beverage. Renters insurance will help to replace it.
Liability Protection
Liability coverage protects tenants from financial loss when they're legally obligated to pay for damage to other people's property or injuries caused by the tenant. For example, the tenant's at a friend's home and sits on their camera, breaking it. This coverage helps pay for the repairs.
Additional Living Expense Coverage
Additional living expenses will help to reimburse the tenant for the reasonable cost of staying elsewhere after their home becomes inhabitable after a covered loss. For example, a fire went through the place, and the tenant can't live there until you make repairs. The additional living expenses cover a hotel, food, and other costs.
Medical Payments Protection
This will help to cover the medical expenses if someone is hurt at the tenant's home. For example, a guest trips over the tenant's rug and falls. If they're found to be negligent and legally responsible, the renters insurance will pay for any lost wages and medical bills for the injured person.
What Does Renters Insurance in Louisiana NOT Cover?
While renters insurance policies can protect tenants in many situations, they won't cover everything.
Here's a peek at what isn't covered:
- Damage Over Coverage Limits - Coverage limits determine how much the renters insurance policy pays. If it's not enough, the tenant will be spending their own money.
- Non-covered Events - Sometimes, events aren't covered by renters insurance. Flood damage, strong wind damage (from hurricanes), and other situations may require a separate insurance policy.
- Expensive Belongings - Most policies won't cover high-cost items, including electronics, jewelry, and artwork. They should be scheduled separately, which costs more.
How to Choose the Right Policy
When choosing renters insurance companies, it's crucial to understand how to make the right choice.
Here are a few tips to give your tenants:
- Compare Renters Insurance Quotes - The tenant should get quotes from at least three providers. The deductibles, limits, and coverage options should all be similar.
- Consider Add-Ons - The tenant might need extra coverage than what's included in a standard policy.
- Focus on Limits - When choosing a limit, each tenant should think of their personal requirements. This is the maximum amount an insurer will pay for the covered claim, so it's wise to go a little higher if possible.
Available Discounts in Louisiana
Though each company is different, they all typically offer discounts. Here are the most common options:
- Claims-free discount
- Automatic payments discount
- Bundling discount (renters and car insurance)
- Installing alarm systems
- Buying a policy online
- Purchasing a new policy before the other one expires
- Easy pay plans
- 55 and retired discount
How Does a Renters Insurance Policy Protect the Landlord or Property Manager?
As the landlord or property manager, you may wonder how renters insurance can help you. Here are the benefits:
- Your liability insurance probably won't cover the tenants and their guests. Therefore, you could see more lawsuits if people get injured. Renters insurance offers liability protection and protects tenants from paying out of pocket or suing you.
- Likewise, your landlord insurance will not cover the tenant's personal property. If their items are damaged, they might try to sue you if they don't have renters insurance.
- If you deal with multiple lawsuits from tenants and their guests, your insurance premiums will skyrocket. Likewise, the insurer might cancel the policy.
- Renters insurance might cover property damage and liability relating to having pets. Therefore, you can feel more confident allowing them in the lease.
Top 5 Best Renters Insurance Companies in Louisiana
Knowing the cheapest renters insurance companies will help you determine if a tenant is using an appropriate brand. Let's check them out now:
1. State Farm Renters Insurance
State Farm is likely the cheapest renters insurance company for those in Louisiana. It only costs $24 per month. Likewise, tenants will enjoy the excellent customer service, which makes it easy to make a claim.
Though the coverage is basic, renters can get enough personal property coverage to meet their needs. However, they won't find water backup and replacement cost coverage.
2. Liberty Mutual Renters Insurance
Though Liberty Mutual isn't one of the cheapest renters insurance companies, it is great for tenants who live near the coast. There are many ways to customize the policy, including replacement cost coverage, identity theft protection, and water backup coverage.
However, there's only $25,000 for personal property coverage here, which might not be enough for those with expensive belongings.
Still, there's plenty of liability coverage that comes standard, and tenants can get separate flood policies to protect against heavy rainfall and hurricanes.
3. USAA Renters Insurance
USAA is a great choice for military families (veterans, active members, retired members, and more). Though this isn't a cheap renters insurance company, it's not excessively expensive. Plus, standard policies include personal property coverage and flood coverage! Tenants won't have to pay more to protect themselves from flooding caused by storms, rising waters, and hurricanes.
4. Allstate Renters Insurance
Allstate is one of the best insurance companies out there because it's been around for many decades and has more financial stability. Getting an Allstate policy is easy, and tenants can find four optional coverages, including flood, personal injury, scheduled personal property, and identity theft.
5. SURE Renters Insurance
SURE is backed by Assurant, and it's a great provider that understands the tenant's needs. It offers coverage for loss of use, personal property, personal liability, sewage/drain backups, replacement costs, and much more.
What Is DoorLoop?
DoorLoop is an all-inclusive property management software. It helps landlords of all sizes, whether they have a mixed-use portfolio or prefer to solely manage commercial or residential properties.
With DoorLoop, you can:
- Get a free website. Tenants may apply online, and you can market your vacancies with ease.
- Provide a tenant portal to make everyone's life easier.
- Collect rent more easily.
- Manage your rental portfolios.
- Manage your maintenance requests online, which reduces calls and texts from tenants.
Overall, DoorLoop is an excellent software option with many benefits. Learn more and schedule a demo today!
Why Work with DoorLoop
Do you want to require your tenants to get a renters insurance policy? DoorLoop can help you. They can submit their own companies, but it's also easy to apply through the tenant portal or application. Everything is powered by SURE in Louisiana. Other states get Lemonade.
Learn more renters insurance through DoorLoop today!
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