Landlord Insurance in Louisiana
Experts break down landlord insurance in Louisiana by cost, coverage, company, and more.
Over 4.6 million people live in Louisiana, with over 30 percent living in rental homes. If you own a rental property in Louisiana, you need to ensure that it has protection against disasters, severe weather, fire, or theft that could leave you in a financial bind. You also need to protect your assets if you are sued for some type of negligence.
If you’re a landlord in Louisiana, it’s important to find the right landlord insurance to protect your investment. A local independent insurance agent can help you get quotes from multiple insurance companies in Louisiana, so you can find the policy that best meets your needs and budget.
What Is Landlord Insurance?
Landlord insurance is similar to homeowners insurance in that it protects your property in the event of a fire, storm damage, or other covered perils. The difference is that landlord insurance is written to specifically protect landlords in their unique situation, such as protecting the building but not the personal property of the tenants, as well as covering loss of rental income and the increased liability risks that landlords face.
How Much Does Landlord Insurance Cost in Louisiana?
Owning a rental property can sometimes be riskier than owning a private dwelling. For that reason, landlord insurance generally costs about 25 percent more than a standard homeowners policy.
But the cost of landlord insurance can vary considerably based on your unique property and set of risk factors. Some of the factors that influence the cost of landlord insurance in Louisiana are:
- Your geographic location and the crime and weather risks for your location
- The age, size, condition, and construction of the building
- The number of rental units
- Whether you allow smokers to rent from you
- Whether your complex has a swimming pool
- The type and amount of coverage you are purchasing
You may be able to save on your landlord insurance premiums if your buildings have fire sprinklers, burglar alarms, gated access, or other security systems installed in the complex and the rental units.
Your best bet is to work with an independent insurance agent who can get quotes from multiple insurance companies. You can compare costs and coverage and choose the landlord insurance policy that best fits your budget.
What Does Landlord Insurance Cover in Louisiana?
A landlord insurance policy in Louisiana provides several types of coverage:
- Property insurance: Covers the building itself (dwelling coverage) and any other structures (other structures coverage) such as a garage or shed for any physical damage caused by fire, lightning, wind, hail, ice, snow, or other covered perils. It also offers coverage for any personal property you may have on the property (e.g., maintenance equipment, appliances, etc.), but it will not cover your tenants’ possessions.
- Landlord liability coverage: Protects you if someone is injured on your property or if you are responsible for damaging someone else’s property (e.g., a tenant’s or a visitor’s property). Landlord liability insurance covers the costs of any medical treatment or property repairs required. If you're sued, it also covers legal costs (e.g., attorney fees, court costs, and financial settlements or judgments).
- Loss of rental income or fair rental value coverage: Coverage for your lost rental income for a specified period if a fire damages your rental property, a storm, or some other covered peril, forcing your tenants to move out while you make repairs.
Depending on your unique needs, you'll likely need to add certain types of optional coverage to your Louisiana landlord insurance policy.
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Can a Landlord Require Renters Insurance in Louisiana?
Your tenants are not required by Louisiana state law to purchase renters insurance. Even you, as a landlord, are not legally required to purchase landlord insurance, although if you have a mortgage on your property, your lender will require it.
Many landlords, however, require tenants to purchase renters insurance in order to avoid disputes arising from damage to the renter’s belongings, as well as any disputes over liability claims or lawsuits.
If you want to require your tenants to have renters insurance, it must be spelled out as part of the lease agreement, with specific tenant responsibilities and the consequences of not providing proof of insurance made clear.
Does Landlord Insurance Cover Tenant Damage in Louisiana?
Landlord insurance does not cover your tenants’ personal property. What’s more, damage to your building that is caused by tenants is not always covered by your landlord insurance in Louisiana.
Typically, landlord insurance in Louisiana will cover sudden and accidental damage caused by a tenant. If, for example, the tenant accidentally causes a kitchen fire, any damage to walls, countertops, cabinets, and other covered parts of the building should be covered by your landlord insurance. Damage to your tenants’ furniture, cookware, and so on, will be covered by their renters insurance, if they have it.
If something like an appliance were to be damaged in the fire, it would likely be covered under the landlord insurance policy. If an appliance breaks due to normal wear and tear, coverage would not be available under a typical landlord insurance policy in Louisiana.
Keep in mind the intentional damage by a tenant will not be covered by landlord insurance in Louisiana. Standard landlord insurance policies can’t protect you if your tenant punches in a wall, kicks in a door, or otherwise intentionally damages some part of a unit. You may, however, be able to purchase additional vandalism coverage that covers some kinds of intentional damage to your building.
What Are the Best Landlord Insurance Companies in Louisiana?
Local independent insurance agents make comparison shopping for landlord insurance easy. They can obtain quotes from the best landlord insurance companies in Louisiana, and ensure that you’re getting your policy at a competitive price.
Why Shop Landlord Insurance with a Louisiana Independent Insurance Agent?
Instead of getting an online quote, find an independent insurance agent now, and get a one-on-one consultation and affordable options for the best coverage for your unique needs. Your agent will work with you free of charge, offering you a variety of options so you can make the best choice.
What’s more, your agent will be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately.
Contact an agent today for a free, no-obligation consultation.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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