By Dan Burghardt, Owner of Dan Burghardt Insurance Agency
For a quick quote, you can contact our quote department directly at (504) 441-RATE (7283) or complete the Online Quote Request form and you will be contacted ASAP.
Homeowners across Louisiana are feeling the pinch. Insurance premiums have surged in recent years, and many policyholders are finding themselves paying two or three times what they were just a few years ago—sometimes for less coverage than before. It’s a tough spot, especially for families who’ve never filed a claim but still see their rates climbing.
After 40 years in this business, it’s safe to say I’ve seen just about everything the Gulf Coast can throw at us—from hurricanes and floods to industry-wide shakeups in the insurance market. The Dan Burghardt Insurance Agency is licensed in both Louisiana and Mississippi, with strong roots in cities like New Orleans, Metairie, Kenner, Gretna, St. Bernard, Slidell, Mandeville, Covington, Baton Rouge, Hammond, Houma, Thibodeaux, LaPlace, Lake Charles, Bossier City, Central, Lafayette, Monroe, and Shreveport. That means we understand firsthand the challenges local homeowners face.
So what’s causing the skyrocketing cost of homeowners insurance in Louisiana?
1. Hurricane Risk and Climate Exposure
It’s no secret—Louisiana is hurricane country. Between the Gulf’s warm waters and unpredictable storm patterns, insurers calculate risk on a much steeper curve here. Every named storm that makes landfall, even if it doesn’t directly hit, still raises future rates. After events like Katrina, Laura, and Ida, insurance companies began reassessing their exposure and many reduced their presence in coastal states altogether. Fewer companies in the pool means less competition—and higher premiums.
2. Reinsurance Costs
Most insurance companies purchase reinsurance to protect themselves in the event of catastrophic losses. Reinsurance companies, often based overseas, have also raised their rates due to the increased frequency and severity of storms. These higher costs are passed directly down to the policyholder. It’s like a domino effect—when reinsurers get nervous, your premiums go up.
3. Inflation and Rising Construction Costs
Rebuilding a damaged home costs more now than it did a decade ago. Lumber, labor, and materials have all increased in price, meaning the insurance company’s potential payout is higher. As the replacement value of homes goes up, so does the coverage amount—and, in turn, the premium. This is especially true in cities seeing growth and development like Baton Rouge, Lafayette, and the Northshore areas.
4. Insurance Market Contraction
Several companies have exited the Louisiana market altogether in the past few years, while others have gone under. This has left fewer choices for consumers and caused a surge in policyholders turning to Louisiana Citizens, the state’s insurer of last resort. While Citizens plays a crucial role, its policies often come with higher premiums and limited options.
For a quick quote, you can contact our quote department directly at (504) 441-RATE (7283) or complete the Online Quote Request form and you will be contacted ASAP.
Solutions: What Can Be Done?
The good news is, even in a tough market, there are steps homeowners can take to manage costs and improve coverage.
1. Let us Shop Around for You
Don’t assume your current provider is offering the best rate. Markets shift. New carriers enter the field. Policy structures change. Our agency works with a wide network of providers, and often finds policies with better value, even when rates are rising across the board.
2. Raise Your Deductibles
Adjusting your hurricane or all-peril deductible can make a noticeable difference in your premium. Just be sure you have enough in emergency savings to cover that deductible in the event of a claim.
3. Bundle Policies
Combining your home and auto insurance (or even including recreational vehicles, boats, or flood insurance) often leads to multi-policy discounts. It’s not guaranteed, but it’s worth exploring.
4. Invest in Storm-Resistant Features
Things like impact-resistant windows, fortified roofing systems, and wind-rated garage doors can not only help protect your home but may also earn discounts with certain carriers. Some insurance companies offer inspections and Wind Mitigation Survey or incentives to verify these upgrades and offer up to 20% discounts, especially Citizens Property Insurance
5. Understand Replacement Cost vs. Actual Cash Value
Be clear on how your home is covered. Replacement cost coverage is typically more expensive, but it means the insurer pays what it costs to rebuild—not the depreciated value of what was damaged. While actual cash value policies cost less upfront, they can lead to disappointing payouts after a loss.
6. Review Your Policy Annually
Life changes, and so does the value of your home. Any recent remodeling, home improvements, enclosures, add-on’s will increase your homes value. Any recent updates on heating, electrical, plumbing or any type of new roof and/ or shutters can all lower your rates Reviewing your policy each year ensures you’re not overpaying for coverage you don’t need—or underinsured if disaster strikes.
As Louisiana continues to face the challenges of climate, economics, and market contraction, smart homeowners are staying proactive. It’s not just about having insurance—it’s about having the right insurance, structured for your home and your situation.
After four decades of working across southern Louisiana and Mississippi, we’ve built a reputation for navigating tough insurance markets and helping property owners find the best balance between cost and protection.
For a quick quote, you can contact our quote department directly at (504) 441-RATE (7283) or complete the Online Quote Request form and you will be contacted ASAP.
No one can control the weather, the global market, or insurance company decisions—but with the right guidance, the impact on a homeowner’s wallet can be minimized.
