Louisiana’s troubled homeowner insurance market begins special session

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“It’s critical that we fund this program, which will save Louisiana’s homeowners money on their insurance,” said Louisiana Insurance Commissioner Jim Donnellan. Report Released last week. “I’ve spoken to many residents and business owners in our state who are struggling to make ends meet and are now seeing rising insurance costs. Some face price gouging from their homes. My top priority is to prevent that from happening and keep people in their homes.”

Donnellan was instrumental in calling the special session, inviting legislators to a Written report Published on January 19, 2023. In the report, the commissioner explained that Louisiana was experiencing a “poor homeowner’s insurance market” after Hurricanes Katrina and Rita. After recent hurricanes such as Laura, Delta, Zeta and Ida, eight insurers failed financially, while many more insurers temporarily stopped writing new policies, Donnellan added.

The insurance commissioner also pointed out that seven insurance companies have expressed interest in the proposed incentive fund — five already licensed in the state, while the other two are awaiting licenses to operate, which the official said would be resolved shortly.

NOLA.com It announced that $45 million would come from the $925 million in additional revenue Louisiana is expected to collect this fiscal year.

There is some pushback for funding; The Louisiana Realtors Association said that while the funding is a “good start,” it does not address the underlying issues that have led to affordability problems in Louisiana’s property insurance market.

“We’re at a crisis point when it comes to getting good, affordable coverage for all real estate customers,” said Norman Morris, CEO of the Louisiana Association of Realtors, NOLA.com reported.


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