State property insurer to hike charges by 68%

As Louisiana continues to expertise an insurer exodus, state property insurer Louisiana Residents Property Insurance coverage Company (Louisiana Residents or Residents) has requested a 63% price hike on all new and renewed residential insurance policies as of January 1, 2023.

With insurers fleeing the state after both turning into bancrupt or refusing to put in writing new insurance policies south of I-12, extra householders have flocked to Louisiana Residents. On September 12, Louisiana Insurance coverage Commissioner Jim Donelon revealed in a city corridor assembly in Jefferson Parish that the insurer has 114,000 insurance coverage insurance policies, a dramatic leap from 37,000 in 2021.

Donelon goals to persuade extra insurance coverage corporations to put in writing insurance policies within the state to stoke competitors and drive down premiums.

“Now we have plans in place to depopulate Residents and have vital curiosity being proven by corporations which are anxious to get these insurance policies out of Residents,” Donelon mentioned, as reported by Fox8Live. “[These are] solvent corporations which are wanting ahead to doing enterprise – aggressive enterprise – with one another within the property insurance coverage market, even beneath I-10 and I-12.”

Donelon’s plan additionally consists of implementing a program that has not been used following Hurricane Katrina – incentivizing non-public corporations to put in writing insurance policies within the state, additional revealing that the groundwork has already been laid, however funding from the state legislature can be wanted.

State Senator Cameron Henry added that he, Donelon, and State Senator Kirk Talbot have been working intently with different lawmakers on the state capital to implement this system once more.

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