Louisiana Homeowners Pay Some of the Highest Insurance Costs In The Country

Louisiana homeowners face some of the steepest insurance premiums in the United States, reflecting the state’s exposure to hurricanes, flooding, and other severe weather.

Data from the U.S. Census Bureau and the Realtor.com® 2025 Climate Risk Report confirm that affordability pressures in Louisiana far exceed those in most nearby states.

Louisiana’s Insurance Costs in Context

According to newly released American Community Survey (ACS) data from the U.S. Census Bureau, Louisiana homeowners with a mortgage typically pay $2,000–$2,499 annually for homeowners insurance, while those without a mortgage average $1,000–$1,499. Overall statewide costs fall into the $1,500–$1,999 range.

Louisiana has 1,258,598 insured homeowner households in total—651,366 with a mortgage and 607,232 without. Among mortgaged owners, 64,177 pay less than $100 annually and 168,576 pay $4,000 or more. Among those without a mortgage, 203,093 pay less than $100 and 92,060 pay $4,000 or more.

Compared with nearby states, Louisiana stands out for its high costs. Texas homeowners with a mortgage also pay $2,000–$2,499, with many reporting premiums over $4,000. Florida falls into the same category, with costs far above the national average.

By contrast, Mississippi homeowners with a mortgage typically pay $1,500–$1,999, while Arkansas averages even lower at $1,500–$1,999 for mortgage holders. Alabama falls into the same range as Mississippi. These comparisons place Louisiana at the high end of the Gulf Coast, second only to Florida in terms of premium pressure.

Climate Risks Driving Higher Premiums

The Realtor.com 2025 Climate Risk Report highlights Louisiana as one of the most climate-vulnerable states in the country. New Orleans homeowners face among the nation’s steepest burdens, with premiums consuming 3.6% of the median home value under a typical HO-3 policy. Baton Rouge also ranks near the top, with insurance costs equal to 2% of home value.

Flood exposure is another major driver. New Orleans leads the country in terms of flood value share gap, with 66% of its housing market at severe or extreme flood risk outside of FEMA flood zones. This underlines why premiums are so high and why homeowners face steep deductibles and additional costs for separate flood coverage.

These risks make Louisiana unique compared with other inland Southern states, where severe weather is frequent but less catastrophic. For Louisiana households, premiums reflect not just higher probability of claims but also the magnitude of potential losses.

Insurance Affordability a National Issue

Louisiana’s struggles mirror broader national concerns about affordability. The Realtor.com 2025 Insurance Affordability Report found that 75% of Americans believe homeowners insurance could soon become unaffordable, while nearly half said they had already faced difficulties obtaining or renewing coverage.

Rising premiums are reshaping buyer decisions. Nearly 30% of homebuyers said they had completely changed their search areas because of insurance concerns, while another quarter reported overhauling their strategies entirely. Even more concerning, 58% of homeowners said they would consider dropping coverage altogether if costs became too expensive, with younger generations especially likely to do so.

For Louisiana homeowners, these concerns are already reality. With insurance costs among the highest in the country, many households face difficult trade-offs between affordability and adequate coverage. As climate risks continue to mount, the state’s insurance market is likely to remain one of the most challenging in the U.S.

This article was produced with editorial input from Dina Sartore-Bodo, Gabriella Iannetta, and Allaire Conte.