Here's what most people don't realize about buying home insurance in Houma: you're not just insuring against the occasional storm. You're insuring a property in one of America's most vulnerable coastal cities, where the Gulf has crept 10 miles closer since the 1930s and where Hurricane Ida left 60% of bayou homes uninhabitable in 2021. That reality shows up in your premium—and in 2025, those premiums are hitting record highs.
If you live in Terrebonne Parish, you know water isn't just nearby—it's everywhere. About 85% of the parish is water or wetlands, with bayous, lakes, and canals woven throughout the landscape. That makes Houma special, but it also makes it expensive to insure. Let's break down what you need to know about protecting your home in the Bayou City.
Why Houma Home Insurance Costs Are So High
Louisiana's average home insurance premium was $10,964 in 2024, and analysts project it will reach $13,937 by the end of 2025—a 27% increase in one year. Compare that to the national average of $3,259, and you'll see Louisiana homeowners are paying nearly five times more than the typical American. Coastal cities like Houma bear the brunt of these increases.
The reason? Terrebonne Parish sits directly exposed to the Gulf of Mexico with minimal barrier island protection. Hurricanes routinely slam into the area, bringing devastating storm surge and winds. When Hurricane Ida hit in 2021, it caused $55 billion in Louisiana damages and killed 26 people in the state. Insurance companies remember those claims, and they price their policies accordingly.
Add to that the ongoing coastal erosion—the Louisiana barrier island shoreline is disappearing at over 20 meters per year in some spots—and you've got a perfect storm of risk factors. Insurers know the Gulf is getting closer to your front door every year, and they're pricing for that reality.
Understanding Flood Zones in Houma
If you own property in Houma, you need to understand this: your standard homeowners insurance policy doesn't cover flood damage. None of them do. And in a place where locals joke that "you can throw a rock and hit water in Terrebonne," that's a massive gap in coverage.
New FEMA flood maps took effect in Terrebonne Parish on September 7, 2023, and they're not good news for many homeowners. The maps designate various high-hazard zones, including coastal V zones (where wave action is expected during flooding) and coastal A zones. Properties in these zones face the strictest building requirements—and the highest flood insurance premiums.
Here's what that means in dollars: coastal Zone V homes pay an average of $3,558 per year for flood insurance, compared to just $569 in lower-risk areas. One Houma homeowner reported getting a flood insurance quote around $3,800 annually after FEMA's Risk Rating 2.0 pricing took effect—compared to about $575 at his previous house. That's nearly seven times more.
The National Flood Insurance Program's Risk Rating 2.0 system now calculates premiums based on your individual property's flood risk rather than just the zone designation. That means your elevation, distance from water, and flood history all factor into your rate. For many Houma homeowners, especially those in bayou communities, this has resulted in dramatic premium increases.
What Your Home Insurance Actually Covers (And What It Doesn't)
Your standard homeowners policy in Houma will cover wind damage from hurricanes—that's the good news. If a tree falls on your roof or hurricane-force winds rip off your shingles, your policy should pay for repairs (minus your deductible, which might be 2-5% of your home's value for wind damage).
But here's where it gets tricky: hurricane damage often involves both wind and water. If your roof is torn off by wind and then rain pours into your home, that's covered. If storm surge floods your house from the ground up, that's not covered by your homeowners policy—you need flood insurance for that. And proving whether damage came from wind or flood can turn into a nightmare when you're filing claims.
Your homeowners policy typically includes dwelling coverage (to rebuild your house), personal property coverage (for your belongings), liability coverage (if someone gets hurt on your property), and additional living expenses (if you need to live elsewhere during repairs). But given Houma's location, the real question isn't what's covered—it's whether you can afford the combined cost of homeowners and flood insurance.
Finding Coverage When Traditional Insurers Say No
The hard truth is that many national insurance carriers are pulling back from Louisiana's coastal parishes or refusing to write new policies. They're looking at the same climate models and coastal erosion data you are, and they don't like what they see. Between 2022 and 2024, about 70,000 flood insurance policies were dropped in Louisiana as costs became unsustainable for homeowners.
If you've been denied coverage—maybe because of your coastal location, an older roof, or past claims—you might end up with Citizens Property Insurance, Louisiana's insurer of last resort. Citizens implemented a 63% rate increase in January 2023, though the state paused additional premium surcharges through 2027. It's expensive, but it might be your only option if you need insurance to satisfy mortgage requirements.
Some homeowners are choosing to go uninsured once their mortgage is paid off—a risky gamble that leaves them financially exposed if the next big hurricane hits. The term "uninsurable" has started appearing more frequently in conversations about Terrebonne and Lafourche parishes, and that's not hyperbole. Some properties are genuinely becoming too risky for insurance companies to cover at rates homeowners can afford.
How to Protect Your Home (And Your Wallet)
Start by getting your property properly evaluated. Contact Terrebonne Parish's Floodplain Manager to understand exactly which flood zone you're in and what mitigation measures might lower your premiums. Sometimes elevating utilities, installing flood vents, or elevating the entire structure can result in lower flood insurance rates—though these improvements require significant upfront investment.
For your homeowners policy, shop around aggressively. Get quotes from multiple carriers and consider working with an independent insurance agent who knows Louisiana's market. Ask about discounts for hurricane shutters, roof improvements, security systems, and bundling policies. Every discount helps when premiums are this high.
Consider higher deductibles if you can afford to pay more out-of-pocket in a claim. A higher deductible can significantly lower your premium—just make sure you have enough savings to cover that deductible if you need to file a claim. And maintain your home meticulously. Keep your roof in good condition, address any drainage issues, and document everything. A well-maintained home is easier to insure.
Living in Houma means accepting a certain level of risk. The bayous, the fishing, the culture—it's worth it for many people. But you need to go into homeownership with your eyes open about insurance costs. Budget for both homeowners and flood insurance, plan for premiums to increase, and have a financial cushion for those high deductibles. The reality is that insuring a home in Terrebonne Parish isn't cheap, and it's not getting cheaper. But with the right coverage and preparation, you can protect your investment and weather whatever storms come your way.
