The Atlantic hurricane season begins on June 1 and ends on Nov. 30, marking the time of year when Louisiana is susceptible and prone to tropical storms.
Hurricanes can cause severe damage throughout Louisiana, flooding and high winds as a result of tropical storms can drastically damage homes and other building structures.
For residents living near the coast, understanding what homeowners policies will, or won't, cover is important when finding the right insurance that covers hurricane damage.
Some Louisiana insurance companies deny claims, or close claims without payment, after Hurricanes
During the aftermath of previous hurricanes in Louisiana, a number of insurance companies have faced criticism for closing claims without payment or for dropping policies.
Oftentimes, when claims go unpaid or policies are dropped, Louisiana homeowners end up having to turn to the state-run insurer, Louisiana Citizens Property Insurance Corp.
Insurance companies deny claims for hurricane damage for various reasons, such as incorrectly filed claims, unpaid premiums, lack of evidence, gaps in coverage or failure to take steps to prevent further damage.
However, there are other issues within Louisiana's insurance industry that lead to customers experiencing problems when it comes to damage claims after natural disasters. These issues include insolvency and financial instability, claim denial and bad faith policies, as well as a lack of transparency.
The Louisiana Department of Insurance released a list in 2021 of 15 insurers in Louisiana that received the highest number of homeowner complaints after hurricanes Laura, Delta and Zeta.
The complaints are regarding various issues, including auto and commercial property insurance, as well as insurance adjusters and agents. The most common complaints were regarding claim progression, claim delay and inadequate payment of claims.
These are the 15 insurance companies on the Louisiana Department of Insurance's list:
- State Farm Group
- FedNatHolding Co Group
- GeoVera
- Allstate Insurance Group
- United Insurance Holdings Group
- Allied Trust Insurance Company
- TWIMG Group
- USAA Group
- Liberty Mutual Group
- Progressive Group
- Centauri Specialty Insurance Holdings Group
- American Bankers Ins. Co of Florida
- Gulf States
- IAT Reins Co Group
- Bankers Specialty Insurance Co.
Hurricane Coverage in Louisiana
Typically, standard homeowners insurance policies cover damage caused by wind, including hurricanes. However, even the best policies won't cover every kind of damage caused by hurricanes.
While there's no singular policy called "hurricane insurance," there are two main sources of hurricane damage, water and wind, that you can insure your home against.
Depending on where you live, homeowners may need to buy flood insurance and windstorm insurance in order to ensure adequate insurance coverage for hurricane damage.
Most homeowner insurance policies don't cover floods, including flooding from a storm surge, therefore, homeowners will need floor insurance.
Additionally, most homeowners insurance policies in coastal areas of some hurricane-prone states won't cover windstorm damage, so, if you in a coastal areas and want coverage, a windstorm insurance policy is a good idea.
Best homeowners insurance companies in Louisiana
NerdWallet analyzed data from 30 Louisiana insurance companies in order to find the insurers with the best homeowners policies. These are the top four insurance companies that received 4.5 stars or more by NerdWallet:
- Amica
- Chubb
- Farmers
- The Hanover
Presley Bo Tyler is a reporter for the Louisiana Deep South Connect Team for Gannett/USA Today. Find her on X @PresleyTyler02 and email at PTyler@Gannett.com