Insurance analyst projects another significant rise in Louisiana property coverage premiums

NEW ORLEANS (WVUE) – As the start of the 2025 hurricane season approaches, an organization that monitors and compares insurance rates is forecasting a sharp increase in property coverage premiums in Louisiana by the end of the year.

“That’s going to be up 27 percent from the about-$11,000 range that they were at the end of last year,” said Chase Gardner, data insights manager at Insurify. “And the reason for this is that Louisiana, along with Florida, is almost the riskiest state when it comes to large tropical storms.”

Insurify projects that Louisiana will see the largest insurance cost increase of any state this year.

“They are trying to price their home insurance rates to account for that. And that leads to Louisianans paying much more for home insurance than the average American — almost five or even six times more than the average homeowner,” Gardner said.

In the US, the average premium for 2024 was $3,259 and the projected amount for this year is $3,520.

The average premium in California last year was $2,424 and it is projected to be $2,930 by year’s end. Florida’s average annual premium was $14,140 last year and is projected to be $15,460 this year.

And Insurify says Louisiana’s average premium in 2024 was $10,964 and is projected to be $13,937 by the end of 2025.

“For this analysis, we looked at a policy that has the same amount of dwelling coverage across every state. So, we tried to make it an apples-to-apples comparison. Let’s say you have the exact same house, but you just moved it from New Orleans to San Francisco or to Miami, how much would you be paying?” Gardner said.

Insurify also warns that sustained tariffs could raise insurance costs higher than those current projections, because the cost of building materials could soar.

John Ford, a deputy commissioner in the Louisiana Department of Insurance, said in a statement, “While we still have more to do to ensure all Louisiana citizens benefit from the recent improvements in our property insurance market, the data shows clear signs of improvement since the legislature passed Commissioner (Tim) Temple’s package of property reform last year.

“The LDI has licensed 10 homeowners insurers since the 2024 session began, and insurers are filing fewer, less-costly rate increases. Through the first three months of 2025, insurers have filed for more rate decreases than were filed for in the entire 2023 or 2024 calendar year. Commissioner Temple will support additional property insurance legislation this session aimed at continuing the positive trends we’ve seen in recent months.”

To read Insurify’s new report, click here.

Louisiana Gov. Jeff Landry is scheduled to outline his insurance reform plan Wednesday.

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