Louisiana landlord insurance

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Being a landlord can be an exciting way to make a little extra cash, but it’s not without risk. Find out how to protect your assets with a Louisiana landlord insurance policy.

What is Louisiana landlord insurance? 

Louisiana landlord insurance is a type of dwelling coverage that’s specifically designed for people who lease their properties to others for an extended time or for those who regularly rent out a vacation home or an investment property.

Sometimes called a DP3 policy, Louisiana landlord insurance is a type of property coverage that’s specifically designed for people who lease their properties to others. Policies typically cover damage to the home's structure, the personal property you may have at the home, and your liability if tenants or their guests get hurt on the property. 

Policies can also provide coverage for lost rental income if covered damage means you can’t rent out the property while it is being repaired or rebuilt.

How does landlord insurance work?

Landlord insurance in Louisiana is pretty straightforward if you understand the difference between problems that you, as the owner, are responsible for and problems that your tenants are responsible for. 

Let’s say, for example, your tenant accidentally causes a bathtub to overflow. This leads to extensive water damage in your rental property. Here's how an insurance company look at it: 

  • Sudden and accidental damage caused by a tenant is usually covered by the landlord’s insurance, including damage to the floor, baseboards, cabinets, and any parts of the building’s structure.

  • Water damage caused by a long-term leak that you didn’t address is usually not covered by your landlord policy. The key to coverage is the “sudden and accidental” nature of the damage, not a problem that was caused by neglect, poor maintenance, or normal wear and tear.

  • Damage to the tenant's possessions likely isn’t covered by your landlord insurance. (This is one reason landlords often require tenants to have renters insurance.) 

What if you're an Airbnb host offering short-term rentals? Do you need homeowners insurance, landlord insurance, or something else? Airbnb home insurance can be complicated, and you need the right coverage to protect yourself. Ask us about covering your Airbnb.

What's covered by landlord insurance?

In Louisiana, landlord insurance typically includes:

  • Property coverage for your dwelling, other structures, and any personal property used to service the rental that you leave onsite (e.g., a snowblower, lawn mower, etc.).

  • Fair rental value coverage, also called "loss of rental income" coverage, to reimburse some of your lost rental income if a covered peril forces your tenants to move out so you can repair your building.

  • Property damage to unoccupied space when it is caused by covered perils. 

  • Liability coverage to protect you if someone is injured on your property or if you’re responsible for damaging someone else's property. It can cover the costs of any medical treatment or property repairs required by the injured party and your legal expenses if you're sued. 

What's not covered by Louisiana landlord insurance?

You landlord insurance likely doesn’t cover:

  • Regular maintenance costs. 

  • Items damaged by normal wear and tear

  • Tenants' belongings

  • Owner-occupied properties (e.g., you still live on the property but rent out a room to a tenant)

How much does Louisiana landlord insurance cost? 

According to the Insurance Information Institute, landlord policies cost about 25% more than a standard homeowners policy. This is mainly because landlords face additional risks, and that can mean they’re more likely to file insurance claims. 

Your landlord insurance premiums are often based on the type of rental property you have and its unique risk factors, such as:  

  • The size and location of your property.

  • The age and construction of your building.

  • The weather and crime risks in your city.

  • The number of rental units.

  • The presence of a swimming pool or any other attractive nuisance.

  • The coverage amounts and deductibles you choose.

Policies purchased through Kin* may also offer discounts for fire sprinklers, burglar alarms, gated access, or other security systems. You can check out coverage options in Louisiana by entering your address.

Do I need landlord insurance in Louisiana?

Even though landlord insurance isn’t always required, owners of residential rental properties in Louisiana must protect themselves. Getting a policy can help protect your finances if you ever experience a natural disaster, like a hurricane, or face a liability lawsuit.

Coverage may even protect a portion of your rental income. If your property is damaged enough to require your tenants to move out while you repair it, some landlord policies can cover that loss.

Landlord insurance vs. homeowners insurance in Louisiana

New landlords often wonder why their Louisiana home insurance (HO3) isn’t enough to protect their investment property. At first glance, you may see similarities between DP3 and HO3, such as the ability to cover homes and other structures on an open-perils basis. 

However, some optional coverages with landlord insurance come standard with a homeowners policy. And landlord insurance can cover some risks that homeowners insurance can't.

DP3 vs HO3

DP3

HO3

Coverage A (Dwelling)

Open perils

Open Perils

Coverage B (Other structures)

Included

Included

Coverage C (Personal property)

Included

Included

Coverage D (Loss of use)

Loss of use and loss of rental income

Loss of use

Coverage E (Personal liability)

Optional

Included

Coverage F (Medical payments)

Optional 

Included

Roof Surfacing Payment Schedule

Included 

Optional

Louisiana landlord insurance FAQs

Is landlord insurance required in Louisiana? 

Landlord insurance is not required in Louisiana, but as a rental property owner it is in your best interest to have it. Getting a policy goes a long way towards making sure your investment is protected against several types of losses.

Why do I need landlord insurance in Louisiana? 

There are many reasons to protect your rental property in Louisiana with landlord insurance, including the following:

  • Landlord insurance provides financial protection against natural disasters and other types of unexpected property damage.

  • It covers expenses and legal fees if a tenant or a visitor gets injured on your property.

  • It provides protection for the most common types of property damage, including fire and water damage, as well as numerous other potential perils. 

Ready to protect your rental properties? Give us a call at 855.717.0022 or enter your address to get a quick, free quote. 

*Kin is Kin Insurance Network Distributor, LLC, a licensed surplus lines producer.

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