Landlord insurance in Louisiana is a different animal than in most states. Carriers are pickier, deductibles are higher, and the difference between "covered" and "excluded" can be five figures on a single hurricane claim. This is what the policy types actually mean and what to ask your agent before you bind.
The four policy types you'll see quoted
- DP-3 (Dwelling Fire 3) — The standard rental-property policy. Open-perils on the dwelling, named-perils on the contents. This is what most Louisiana landlords end up with for single-family and 1-4 unit rentals.
- DP-1 (Dwelling Fire 1) — Bare-bones; named-perils only. Cheaper but covers less. Skip unless the property is so old/risky no DP-3 carrier will write it.
- HO-6 — For owner-occupied condos. Not relevant unless you're house-hacking a condo.
- Commercial property + GL — For 5+ unit buildings, mixed-use, or anything with commercial tenants. Different beast entirely.
For most of this post we're talking about DP-3, which is the default for a Louisiana rental.
Hurricane wind / named-storm deductibles
This is the part that hurts new landlords. A standard DP-3 policy in Louisiana will have two deductibles:
- All-other-perils (AOP) deductible — usually $1,000–$2,500. Applies to fire, theft, vandalism, etc.
- Named-storm deductible — typically 2–5% of dwelling coverage. Applies whenever a tropical storm or hurricane is named by the National Hurricane Center.
On a $300,000 dwelling coverage with a 5% named-storm deductible, you're paying the first $15,000 of any hurricane claim. That's not a typo. Carriers introduced these in the post-Katrina market and they've stayed.
What to ask:
- Is the named-storm deductible 2%, 3%, or 5%?
- Does it apply per occurrence, or annually? (Per-occurrence means each named storm in a season triggers a new deductible.)
- Are there options to buy down the deductible to a fixed dollar amount? Yes, usually — for an additional premium.
Flood is separate
Flood is not covered by your dwelling policy. Period. You buy it through:
- NFIP (National Flood Insurance Program) — capped at $250k dwelling / $100k contents. Premiums depend on flood zone (X = optional, AE = required + moderate, V = required + expensive).
- Private flood market — higher limits, sometimes lower premiums in low-risk zones, sometimes much higher in high-risk zones.
If you have a federally-backed mortgage (conventional, FHA, VA) and the property is in a SFHA (Special Flood Hazard Area), flood is required. Lender will not close without proof.
Coverage you actually want
- Dwelling (Coverage A): Replacement-cost value of the structure. Get a real estimate, not the tax-assessed value. Underinsuring saves $200/yr in premium and costs $50,000 on a total loss.
- Other Structures (Coverage B): Detached garages, sheds, fences. Usually 10% of Coverage A automatically.
- Personal Property (Coverage C): Limited on a DP-3 — it covers only items belonging to you that happen to be in the unit (appliances, lawn equipment). Tenants' belongings are their problem.
- Loss of Rental Income (Coverage D / Fair Rental Value): If a covered loss makes the unit uninhabitable, this pays your rent for the rebuild period. Get 12 months minimum; 24 if you can.
- Liability (Coverage E): $300k minimum, $500k–$1M better. Cheap to upgrade. A slip-and-fall claim against a landlord settles in the low six figures regularly.
- Medical Payments (Coverage F): $1k–$5k. Covers small injury claims without admitting liability. Cheap.
Umbrella policies
Once you own 2+ rentals, a $1M–$2M umbrella policy is standard. It sits on top of all your underlying liability policies (auto, home, landlord) and kicks in when a claim exceeds them. Premium is typically $300–$500/yr per million. Cheapest seven-figure protection you can buy.
Real numbers — 4-unit in Baton Rouge
For context, here's a sample annual premium structure on a $400,000 dwelling-value 4-unit, north Baton Rouge, no flood-zone risk:
| Coverage | Limit | Annual premium |
|---|---|---|
| Dwelling (DP-3, replacement cost) | $400,000 | $2,800 |
| Loss of rental income (12 mo) | $48,000 | included |
| Liability | $500,000 | $180 |
| Med pay | $5,000 | $25 |
| Total dwelling policy | $3,005 | |
| Umbrella ($1M, all properties) | $1,000,000 | $400 |
| Flood (if zone X) | $250,000 | $0 (optional) |
| Total | ~$3,400/yr |
In a flood zone (AE) add $1,200–$2,500/yr. In a coastal V zone add $4,000–$8,000/yr.
Three things that quietly kill your coverage
- Vacancy beyond 30–60 days. Most DP-3 policies have a vacancy clause that limits or excludes coverage if the unit is unoccupied past a threshold. If you're between tenants, tell your agent and add a vacancy endorsement.
- Renovations / construction. A standard DP-3 doesn't cover a property under major construction. If you're doing a substantial reno, you need a Builder's Risk policy for the duration.
- Short-term rentals. Listing your "rental" on Airbnb or VRBO without telling your carrier is an exclusion-fest. Hosting platforms' coverage is usually inadequate. If you STR, get a dedicated short-term rental policy.
Operating in RentFlow
Insurance premiums are an operating expense — they post to the GL and flow through Schedule E. RentFlow's bank feed catches the autopay debit; AI document intelligence reads the policy declaration page and links it to the journal entry as supporting documentation. Audit trail closed without you typing anything.
If you're tracking insurance across 5+ properties manually in a spreadsheet, that's where bookkeeping mistakes start.