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Louisiana is a culture-rich and vibrant state with many rental properties and a booming market for landlords and tenants.
It also has its fair share of extreme weather, so property investors need to have the right insurance. This guide to landlord insurance in Louisiana has the must-know details.
The National Average Cost of Landlord Insurance Compared to Average Rent Costs
Before we look at the national averages for rental costs and landlord insurance, it is important to remember that these figures do not accurately represent what you are likely to pay or be able to charge.
They are purely a guide- and a very rough one at that.
Across the US, the national rental property price per month is $1,972 (including listed rentals). In comparison, the current average monthly premium for landlord insurance is $175- or $2,100 per year.
What Is Louisiana Landlord Insurance?
Landlord insurance is a type of home insurance policy that provides coverage to those who own rental property in the state. It is not a legal requirement, but it is vitally important.
A landlord insurance policy covers several things, but its main purpose is to provide financial protection after sudden and accidental damage. In a state with the weather risks of Louisiana, this is a must-have.
Landlord Insurance VS Homeowners Insurance
There are a few differences between landlord insurance and homeowners insurance in terms of coverage, but the sum of it is this:
You need landlord insurance if you own a property but rent it out to someone else.
You need homeowners insurance if you own and live on your property.
What Does Landlord Insurance Cover in Louisiana?
A standard policy for landlord insurance includes;
- Dwelling coverage
- Personal property insurance
- Landlord liability insurance
- Additional structures
How much coverage you have for each and what counts as a covered event depends on your policy.
Important Additions
The biggest risk Louisiana landlords face is severe weather damage- hurricanes especially. Because of this, it is important to add the following coverage options to your policy.
- Flood insurance: Most insurance policies do not cover flood damage, but you can add it or take out a separate policy.
- Rental income protection: If your property is destroyed or becomes unstable, you will have to relocate your tenants. This means you could lose rental income. You can add protection that covers lost rental income in these circumstances.
What Is Not Covered in a Louisiana Landlord Insurance Policy?
Some things cannot be added to your coverage and are simply not covered by landlord insurance.
- Tenants possessions (they should purchase renters insurance for their personal belongings)
- Malicious or intentional damage caused by tenants
- General wear and tear and replacement of old appliances
Why Do Louisiana Rental Property Owners Need Landlord Insurance?
If your rental property is hit by a severe weather event, landlord insurance can pay to rebuild.
Your policy pays legal costs and medical bills if you are liable for an injury sustained on your rental property.
Rely on insurance to cover the costs of temporarily relocating tenants if your property is uninhabitable.
These are just some examples- the list of reasons goes on.
How Much Does Landlord Insurance Cost in Louisiana?
The average cost of landlord insurance in Louisiana is close to $2,500- higher than the national average by a few hundred dollars.
How Are Louisiana Landlord Insurance Coverage Costs Calculated?
Landlord insurance costs are calculated based on the following factors.
- Size, value, and condition of the property
- Location and the specific risks for that area
- How much coverage is needed
- The deductible amount
- Client's claims history
In short, it depends on how much it would likely cost to rebuild your property and how high the risk is to the insurance provider.
Ways to Save Money on Landlord Insurance in Louisiana
Here are a few tips for lowering your landlord insurance quote.
- Mitigate storm risks with reinforced doors, windows, and roofing- and consider anti-flooding measures if possible.
- Increase your deductibles.
- Screen tenants with DoorLoop.
- Be ready for the inspection.
- Replace any old or worn appliances and invest in upgraded HVAC systems.
Most insurance companies offer a range of discounts, so compare offers to see how much you could save before you choose your landlord policy.
Landlord Insurance Companies in Louisiana: Five Providers to Consider
Many insurance agents offer cover for Louisiana landlords. Here are five of the best landlord insurance companies to consider.
What Is DoorLoop?
DoorLoop is a comprehensive property management solution that makes owning and operating rental properties easier. The convenient, user-friendly platform lets landlords manage their properties and tenant interactions in one place.
Some of the standout features include:
- Online maintenance management to reduce calls and emails and increase efficiency
- Tenant portals so your renters can easily access information and make rent payments digitally
- Accounting tools
- Customizable applications website
- Marketing with Zillow and Trulia
- Tenant screening
- Document storage
- Lease management tools
You can try it for yourself by scheduling a free demo!
Final Thoughts
Rental property insurance is incredibly important for Louisiana landlords.
Between severe weather risks in many parts of the state and the general risks that come with renting property, nobody who owns a property in Louisiana wants to be left without coverage if the worst should happen.
Speak to multiple insurance companies to find the best deal, and remember to include flood insurance!
Insurance coverage is one part of bettering your business, and using DoorLoop is another.
Take the Louisiana rental property market in your stride with a comprehensive management tool and high-quality landlord insurance cover.
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