Property Insurance in Louisiana

[Nick Ysidron]

Does anyone have a good recommendation for getting a property insurance policy in Louisiana? I have a long-term rental property in Baton Rouge and need to find new coverage since my current insurer isn't writing in the state anymore.

[Taylor Stow]

@Nick Ysidron  Property insurance in Louisiana is way up for everyone, and we are just now starting to see its impact for real estate investors.  And its not just small rental property owners, there are big multifamily deals that are falling apart at the last minute because the insurance costs are too high and the deal doesn't pencil.  

That said, as you shop for insurance for your property, make sure your insurance broker is up to date with all of the available options.  

Insurance Companies Writing Policies in Louisiana 

The state legislature recently passed incentive money for insurers to come write policies in Louisiana, and the insurance companies responded.  Here's a list of the insurers that received incentive money that should be writing new policies: 

• Allied Trust Insurance Company 
• Applied Underwriters
• Cajun Underwriters Reciprocal Exchange (CURE)
• Constitution Insurance Company
• Elevate Reciprocal Exchange 
• Gulf States Insurance Company 
• SafePoint Insurance Company 
• SafePort Insurance Company 
• SureChoice Underwriters Reciprocal Exchange (SURE)

You can check out more info about the incentive program at the Department of Insurance's website: https://www.ldi.la.gov/news/pr...

Risky Insurance Companies

@Ryan Letzeiser makes a good point about watching out for the solvency of insurance companies.  As your shopping for insurance, you'll want to determine if the insurer you're considering is "admitted" in Louisiana such that it is covered by the Louisiana Insurance Guaranty Association ("LIGA").  If an admitted insurer becomes insolvent, LIGA should cover all or most of a claim amount.  On the other hand, if you go with an unauthorized insurer, you won't get that LIGA protection.  For more, see: https://www.laiga.org/history/...