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Landlord Insurance Louisiana
Last updated: May 26, 2025
"The first rule in investment is don't lose and the second rule in investment is don't forget the first rule." - Warren Buffett
Landlord insurance in Louisiana is a specialized insurance package designed for property owners who rent out residential or commercial real estate throughout the Pelican State. Whether you own a single rental home in New Orleans, a multi-unit building in Baton Rouge, or commercial property along the Gulf Coast, landlord insurance Louisiana is essential to protect your investment from risks unique to this region.
Unlike standard homeowners insurance, landlord insurance policies in Louisiana address the specific challenges rental property owners face, including tenant liabilities and weather events typical to Louisiana, such as hurricanes, flooding, and heavy rainfall.
Insurance premiums in Louisiana have been rising steadily, impacting landlords’ profitability and cash flow. Our review of thousands of landlord insurance Louisiana policies shows that many property owners pay up to 25% more than necessary, often because they lack access to specialized agents familiar with Louisiana’s landlord insurance market.
To help solve this, we created the OfferMarket Insurance platform, dedicated to assisting Louisiana landlords by comparing quotes from over 40 insurance providers. Our Louisiana-focused insurance specialists analyze each quote to ensure you receive comprehensive coverage at competitive rates—helping landlords across Louisiana save thousands each year.
What Risks Does Landlord Insurance in Louisiana Cover?
A thorough landlord insurance policy in Louisiana typically protects against:
🏠 Property damage from hurricanes, flooding, fire, windstorms, vandalism, and other common Louisiana risks
⚖️ Liability claims arising from injuries on your Louisiana rental property
💸 Loss of rental income if your property becomes uninhabitable due to covered events
🌊 Flood insurance (required separately for Louisiana rentals in designated flood zones)
Property Insurance
In Louisiana, landlords must prepare for weather-related perils such as hurricanes during hurricane season, flooding from heavy rains, and wind damage, in addition to fire and vandalism risks. The property insurance portion of your landlord insurance Louisiana policy covers these threats and may also include temporary housing costs if tenants need to relocate during repairs.
Louisiana property insurance is generally structured in three main forms—Basic, Broad, and Special—each covering different perils:
Basic Form Perils
The most affordable option for Louisiana landlords covers fundamental risks including:
🔥 Fire
🌩️ Lightning
💥 Internal explosion
Extended Coverage (EC) Perils
Louisiana landlords can add extended coverage, often remembered by the mnemonic WHARVES, covering:
🌬️ Windstorm (including hurricanes and tropical storms common in Louisiana)
🦹♂️ Civil commotion
🔥 Smoke damage (not caused directly by fire)
🌨️ Hail (less frequent but possible during severe storms)
✈️ Aircraft
🚗 Vehicle impact
💥 Explosion
❗ Riot
For vandalism-related damage, the acronym V&MM stands for:
🏚️ Vandalism
🦹♂️ Malicious mischief
Broad Form Perils
Insurance agents in Louisiana use the acronym BIG AFFECT to remember additional broad form perils that include basic and extended coverage plus:
🥷 Burglary damage
🧊 Ice, sleet, snow (rare but possible in northern Louisiana winters)
🪟 Glass breakage
🚰 Accidental discharge of water or steam
🧊 Freezing objects (important during cold snaps)
✈️ Falling objects
⚡ Electrical current damage
🏚️ Collapse
💥 Tearing asunder
Special Form Peril
The most comprehensive coverage for Louisiana landlords is the “Special Form” or “DP-3” policy (commonly used for single-family rentals). This covers all direct physical loss unless excluded. Typical exclusions in Louisiana policies include:
🌊 Flooding (requires separate flood insurance due to Louisiana’s flood-prone geography)
🌎 Earthquake (uncommon but possible, usually added by endorsement)
🤡 Intentional damage
⚠️ Building code enforcement costs
🔌 Power interruptions off-premises
🇺🇸 Government seizure
General Liability Insurance
General liability insurance in Louisiana protects landlords from claims related to injury or property damage suffered by tenants, visitors, or contractors on your rental property. Coverage limits typically range between $100,000 and $1,000,000 per incident.
For example, if a tenant is injured on a slippery porch in your New Orleans rental and sues, your landlord insurance Louisiana policy’s liability coverage helps cover medical bills and legal costs.
Business Interruption Insurance (Loss of Rent)
Louisiana landlords risk losing rental income if tenants must vacate due to property damage, especially after hurricanes or floods. Business interruption insurance included in your landlord insurance Louisiana policy helps cover lost rent to keep your cash flow stable during repairs.
This coverage tends to be affordable in Louisiana, generally costing about $1 per $1,000 of annual rental income.
Flood Insurance
Flood insurance is critical in Louisiana due to the state’s vulnerability to flooding—especially in low-lying areas like New Orleans, Baton Rouge, and Lake Charles. If your property is located in a FEMA-designated flood zone, flood insurance is often mandatory.
Louisiana lenders typically require flood coverage up to $250,000. Flood insurance is purchased separately from your landlord insurance Louisiana policy and is commonly available through the National Flood Insurance Program (NFIP). You can check flood risk using FEMA’s Flood Map Service Center.
Landlord Insurance for DSCR Loans in Louisiana
If you finance your Louisiana rental property with a Debt Service Coverage Ratio (DSCR) loan, it’s important to understand your lender’s insurance requirements. Louisiana landlords must secure landlord insurance policies meeting lender standards to qualify and maintain loan approval.
Because insurance premiums affect your DSCR ratio, choosing affordable yet thorough landlord insurance Louisiana policies is key to maintaining healthy cash flow and eligibility. Typical DSCR lender requirements include:
| DSCR Loan Insurance Requirement | Required? |
|---|---|
| Property Insurance | Yes |
| General Liability Insurance | Yes |
| Business Interruption Insurance | Yes |
| Mortgagee Clause | Yes |
| Lender as Additional Insured | Sometimes |
Our OfferMarket Insurance platform can guide Louisiana landlords through DSCR insurance demands, providing quotes that align with lender criteria while minimizing costs.
How Much Does Landlord Insurance Cost in Louisiana?
Landlord insurance costs in Louisiana vary based on several key factors:
Location in Louisiana
Insurance companies use regional data when pricing policies. Properties near flood-prone coastal areas such as New Orleans, Houma, or Lake Charles may face higher premiums than rentals in northern cities like Shreveport or Monroe. Local repair costs and labor availability also influence rates.
Property Insurance Type
Louisiana landlords choose from Basic, Broad, or Special Form coverage. Special Form provides the most comprehensive protection and is usually recommended, although it comes at a higher price.
| Property Insurance Type | Cost |
|---|---|
| Basic Form | $ |
| Basic + Extended Coverage | $$ |
| Broad Form | $$ |
| Special Form | $$$$ |
Dwelling Coverage Amount
The most significant factor affecting your Louisiana landlord insurance premium is the dwelling coverage limit. Insuring your property at full replacement cost value (RCV) is advised to avoid penalties like coinsurance.
With rising construction costs across Louisiana due to hurricane rebuilding and inflation, it’s critical to update your coverage regularly.
| Dwelling Coverage Type | Cost |
|---|---|
| Actual Cash Value | $ |
| Functional Replacement Cost | $$ |
| Replacement Cost Value | $$$ |
Deductible
Higher deductibles reduce your annual premium in Louisiana. Many landlords opt for deductibles of $5,000 or more to balance out-of-pocket expenses with savings.
| Deductible | Premium Cost |
|---|---|
| $1,000 | $$$$ |
| $2,500 | $$$$ |
| $5,000 | $$$ |
| $7,500 | $$ |
| $10,000 | $ |
Claim Frequency and Severity in Louisiana
Insurance carriers in Louisiana consider your claims history and the history of your rental property when setting rates. Frequent or severe claims—such as those from water damage due to Louisiana’s humid climate or hurricane destruction—may raise premiums or lead to restrictions.
Crime Score Impact in Louisiana
Neighborhood crime rates, especially in urban areas like New Orleans, Baton Rouge, or Shreveport, affect landlord insurance premiums. Higher crime rates often increase risks for vandalism, theft, and liability claims, which can drive up insurance costs or result in policy limitations.
Security improvements and property management can help lower these premiums despite a high crime score.
Property Condition and Maintenance in Louisiana
Well-maintained properties in Louisiana’s humid and hurricane-prone environment typically benefit from lower premiums. Regularly updating plumbing, roofing, and HVAC systems prevents costly damage such as flooding or mold.
Older homes with deferred maintenance or outdated materials may face higher premiums. Maintaining detailed records of upkeep can improve insurer evaluations.
How to Protect Your Rental Property in Louisiana
While landlord insurance Louisiana is crucial for mitigating risks, taking proactive steps enhances protection:
Tenant Screening
In Louisiana’s competitive rental markets—whether in New Orleans, Baton Rouge, or Lafayette—thorough tenant screening is vital. Run credit and background checks on all adult applicants, establish clear credit and background standards, and require higher deposits or guarantors for exceptions.
Regular Maintenance
Louisiana’s variable weather calls for consistent maintenance. Conduct inspections quarterly to spot issues early, such as roof leaks, flood damage, or mold growth. Keep detailed records to share with insurers for possible discounts.
Tenant Maintenance Education
Educate tenants on simple upkeep, such as HVAC filter changes, shutting off water during emergencies, and preventing mold in Louisiana’s humid climate.
DP-3 Insurance in Louisiana
DP-3 policies, known as Special Form coverage, are standard for Louisiana rental properties. This coverage reimburses losses based on replacement cost and protects against most physical damage except for specified exclusions.
What is Coinsurance?
Coinsurance clauses penalize Louisiana landlords who insure below a set percentage (usually 80%) of replacement cost. Underinsuring means you pay part of the loss yourself.
Coinsurance formula
(Insurance Carried ÷ Insurance Required) × Loss = Claim Payment – Deductible
Example:
If your Louisiana rental’s replacement cost is $300,000 but insured for only $150,000 with a $5,000 deductible, a $60,000 loss pays as:
($150,000 ÷ $300,000) × $60,000 = $30,000 - $5,000 = $25,000 from insurer. You cover $35,000, highlighting the importance of full replacement coverage.
Landlord Insurance Markets in Louisiana
Wherever your rental is located in Louisiana—from historic New Orleans neighborhoods to growing suburbs of Baton Rouge or coastal areas—we connect you to specialized landlord insurance options tailored for Louisiana risks.
Best Landlord Insurance in Louisiana
Louisiana landlords should look for policies that include:
- Comprehensive property insurance addressing hurricane and flood risks
- General liability coverage for tenant and visitor protection
- Business interruption insurance to protect rental income
- Flood insurance for properties in flood zones
Working with agencies experienced in Louisiana landlord insurance and offering multiple carriers ensures you get the best coverage at the best price. Start your landlord insurance quote with OfferMarket Insurance today!
Landlord Insurance Guidelines for Louisiana DSCR Loans
The following reflect best practices for landlord insurance in Louisiana to meet DSCR lender requirements:
Property Coverage
| Coverage Type | Requirement |
|---|---|
| Property Insurance | Mandatory, AM Best Rating A- VIII or higher, 1-year term |
| Limits | 80% of replacement cost or loan amount, whichever is higher |
| Deductible | $5,000 |
| Policy Type | Special Form (Dwelling Fire or Commercial Property) |
| Cancellation Notice | 30 days |
| Lender’s Designation | Mortgagee |
General Liability Insurance
| General Liability Insurance | Requirement |
|---|---|
| Mandatory | Yes |
| AM Best Rating | A- VIII or higher |
| Limits | $500,000 per occurrence, $1,000,000 aggregate |
| Deductible | $1,000 |
| Coverage | Occurrence basis |
| Cancellation Notice | 30 days |
| Lender’s Designation | Additional Insured |
Business Interruption Insurance
| Business Interruption Insurance | Requirement |
|---|---|
| Mandatory | Yes |
| AM Best Rating | A- VIII or higher |
| Limits | One year of gross rental revenue |
| Cancellation Notice | 30 days |
| Lender’s Designation | Mortgagee |
Flood Insurance
| Flood Insurance | Requirement |
|---|---|
| Mandatory if in flood zone | Yes |
| AM Best Rating | A- VIII or higher |
| Limits | $250,000 or loan balance, whichever is greater |
| Cancellation Notice | 30 days |
| Lender’s Designation | Mortgagee |
Additional Details for Louisiana Landlord Insurance
| Detail | Information |
|---|---|
| Mortgagee Clause | OfferMarket Capital LLC ISAOA/ATIMA 627 S Hanover St Baltimore, MD 21230 |
| Condos and PUDs in Louisiana | Blanket policies allowed if individual units covered; associations must maintain all-risk coverage at 100% replacement cost for common areas. |
| Instructions | Use ACORD forms for compliance. Submit insurance certificates, invoices, or paid receipts 24 hours before closing. Final policy documents due within 60 days of closing. Notify carriers if property becomes vacant and secure vacancy permit if needed. |
Frequently Asked Questions About Landlord Insurance in Louisiana
How does OfferMarket Insurance work for Louisiana landlords?
OfferMarket Insurance is a platform specializing in landlord insurance Louisiana property owners require. We compare quotes from multiple carriers to ensure policies fit your needs and lender standards in Louisiana. Our experts review every quote so you get optimal coverage at the best price.
Do I need a Builders Risk Policy in Louisiana?
Builders Risk insurance is not part of standard landlord insurance Louisiana policies. It’s needed only if you are renovating, rehabbing, or constructing a rental property. It covers property and materials during the building process.
Can I use Functional Replacement Cost instead of Replacement Cost Value for my Louisiana rental?
It depends on your lender’s requirements in Louisiana. Many accept Functional Replacement Cost, but some demand Replacement Cost Value depending on your property’s age and condition as noted in your appraisal.
Why does my Louisiana lender need to be an Additional Insured?
Some DSCR lenders require this. Being an Additional Insured extends liability coverage to the lender, while the Mortgagee Clause covers property rights. Understanding both ensures your policy complies with lender expectations.
Can I use my preferred insurance agent for landlord insurance in Louisiana?
Yes, if your agent offers competitive landlord insurance Louisiana policies and understands state-specific requirements. Agents focused solely on personal insurance may lack landlord insurance expertise, potentially causing delays.
Can I pay for landlord insurance on the HUD-1 or ALTA settlement statement in Louisiana?
DSCR loans in Louisiana generally require full payment of landlord insurance premiums at closing, either on the HUD-1/ALTA statement or directly through your insurance agent before settlement.
Can I escrow my landlord insurance premium in Louisiana?
Many institutional lenders in Louisiana require premiums to be escrowed as part of monthly mortgage payments to ensure continuous coverage.
Can I get a refund if I cancel my Louisiana landlord insurance policy?
Yes, insurers must refund unearned premiums on a pro-rated basis. Ensure you have replacement coverage before canceling to avoid gaps.
What is an AM Best Rating?
AM Best rates insurance companies’ financial strength. In Louisiana, choose carriers rated A- VIII or higher to guarantee dependable landlord insurance coverage.
What is Builders Risk Insurance in Louisiana?
Builders Risk covers Louisiana properties and materials during construction or renovation. It protects against fire, wind, theft, and vandalism during building and typically ends once construction finishes or the property is occupied.
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