Louisiana property insurance keeps climbing, and landlords are feeling the pressure. Whether it’s skyrocketing premiums, limited options for flood insurance, or properties becoming unprofitable altogether, this insurance crisis is hitting real estate investors hard. Louisiana already ranks as one of the most expensive states for property insurance, with rates coming in nearly 60-70% higher than the national average. For landlords trying to maintain cash flow and protect their investments, these rising costs can be overwhelming. In this article, we’ll break down why property insurance is so expensive in Louisiana, how it affects landlords, and what you can do to protect yourself — or how to walk away from a rental that just doesn’t make sense anymore.
Table of Contents
- Why Property Insurance Costs Are Rising in Louisiana
- How Rising Insurance Impacts Landlords
- How Landlords Can Protect Their Properties
- Invest in Storm Proofing to Lower Insurance Costs
- When It’s Time for a Landlord to Sell a Rental Property
Why Property Insurance Costs Are Rising in Louisiana
Being a landlord in Louisiana comes with risks, and those risks are reflected in your property insurance premiums. Thanks to our location along the Gulf of Mexico, Louisiana is constantly in the path of hurricanes, tropical storms, and heavy flooding. Combine that with the state’s low elevation, shifting soil, and erosion, and you’ve got one of the highest-risk areas for property damage in the U.S.
Insurance companies know all the risks that come with insuring in Louisiana, and many have decided to raise premiums or leave Louisiana entirely. That leaves fewer options for landlords, less competition between insurers, and higher rates for everyone—especially when it comes to flood insurance. For landlords with properties in places like New Orleans, Metairie, or along the coast, these high costs can feel impossible to avoid.
How Rising Insurance Impacts Landlords
1. Shrinking Profit Margins
For landlords, rising property insurance premiums eat into profits fast. You can try to raise rents, but depending on lease terms and market demand, it’s not always enough. Many landlords across Louisiana are stuck with rental properties that barely break even—or worse, cost more to keep than they bring in.
2. Strain on Property Maintenance
When a landlord’s budget gets squeezed by higher insurance costs, property maintenance often takes the hit. Repairs and upgrades get delayed, which lowers the value of your rental property and can cause bigger issues down the line. It only takes one major repair to wipe out your rental income for the year.
3. Skipping Flood Insurance — A Risky Gamble
Some landlords, trying to save money, skip flood insurance altogether. But after a major storm or flood, the damage can easily add up to tens of thousands of dollars—way more than any premium. Without flood insurance, landlords are completely exposed to those costs, and rebuilding becomes an expensive nightmare.
How Landlords Can Protect Their Properties
If you’re a landlord trying to keep your rental profitable, you still have options to control your insurance costs and protect your investment.
1. Shop Around for Better Policies
Never take the first quote you get. Experienced landlords know to compare different property insurance and flood insurance policies. An independent broker can help you find the right coverage that protects your rental property without overpaying.
2. Understand Your Coverage
Low premiums can look attractive, but make sure you know what’s included—and what’s not. A good landlord understands every part of their property insurance policy, especially when it comes to flood damage exclusions, coverage limits, and deductibles.
Invest in Storm Proofing to Lower Insurance Costs
Landlords can lower their risk—and sometimes their insurance premiums—by storm-proofing their rentals. Many insurers offer discounts for properties in Louisiana that are better protected against hurricanes, flooding, and severe weather. Even simple upgrades can make a difference in your insurance rates and long-term maintenance costs.
1. Elevate Where You Can
If your rental is in a flood-prone zone, elevating the structure or essential systems like electrical panels and HVAC units can help avoid major damage. A small elevation project can significantly lower your flood insurance premiums, making your Louisiana rental property more affordable to maintain as a landlord.
2. Upgrade the Roof
Your roof is the first thing a storm will test. Stronger roofing materials—like impact-resistant shingles, metal roofs, or hurricane straps—protect your rental and can lead to lower property insurance premiums. Smart landlords know this upfront investment pays off in fewer repairs and lower claims.
3. Hurricane Shutters & Impact Windows
Sandbags are temporary, but real drainage improvements—like French drains, sump pumps, or proper landscaping—can keep water away from your rental long-term. Good drainage not only protects your tenants but may also lower your flood insurance premiums.
4. Flood Barriers & Better Drainage
Sandbags are temporary, but real drainage improvements—like French drains, sump pumps, or proper landscaping—can keep water away from your rental long-term. Good drainage not only protects your tenants but may also lower your flood insurance premiums.
5. Backflow Valves for Plumbing
In places like New Orleans, flooding often causes sewer backups, leading to expensive repairs. Installing backflow prevention valves protects your rental from nasty, costly damage. As a landlord, this is one of the easiest upgrades that insurance companies like to see on your property.
When It’s Time for a Landlord to Sell a Rental Property
Sometimes, even with storm-proofing and smart upgrades, the numbers just don’t add up. When property insurance and flood insurance keep rising, some landlords realize it’s time to let go of a property that’s no longer profitable.
That’s where Bertucci Investment Group comes in. We help landlords across Louisiana sell their rental properties fast—no repairs, no inspections, no endless waiting for the right buyer. Whether your Louisiana rental is stuck in a high-risk flood zone, or the rising costs of insurance are killing your profits, we make the process simple.
Ready to Move On?
Stop losing money on a rental that’s draining your bank account. As a landlord in Louisiana, you have enough to deal with—don’t let rising property insurance and flood insurance costs hold you back. Contact Bertucci Investment Group today, and let us help you sell your rental fast, so you can move on to your next investment.