ST. CHARLES PARISH, La. – Once again, insurance renewals are on the rise in southern Louisiana with little relief in sight.
St. Charles Parish Justice of the Peace Zack Young experienced a huge increase back in February.
Young was stuck with a new insurance company after his company folded in the wake of Hurricane Ida. The new policy was a nearly 250 per cent increase, almost doubling his homeowner’s premium.
Now, like many people, Young is facing another spike on his latest renewal.
“Just last week I got a renewal on one of my properties where we went from about 1,800 to 4,400 a year,” Young said.
Young said these increases affect both homeowners and renters. Sometimes landlords pass the costs on to tenants.
“There seems to be a lot of fear about the affordability of staying in the area where we live,” Young said.
Young said he would never leave Louisiana, but many are facing that difficult decision.
“Look, I think our legislators need to come to the table and come up with some solutions. There’s some regulations and some things that we do that are not friendly to the insurance companies. We need to figure out a way to get them to come here and stay here,” Young said.
Earlier this year, the state legislature approved a $45 million incentive fund to attract more insurance companies to Louisiana.
It also created a grant programme, Louisiana Fortify Homes, to pay homeowners to install stronger roofs. But there are restrictions on who qualifies.
Young said he had already replaced his roof after Ida before the programme started.
Not to mention, Young said he’s noticed that insurance companies are requiring a minimum amount to issue a new policy.
“They want to over-insure us. Let’s say it’s $300,000. If I have a 5 per cent deductible, that’s a $15,000 deductible before they pay me a penny. So if my roof costs $8,000, I’m essentially self-insured for a small storm. That’s not insurance,” Young said.
Louisiana’s insurance commissioner-elect, Tim Temple, has called what’s happening with homeowners insurance a ‘crisis’.
Temple said he wants to create a “competitive environment” that makes insurers want to do business in Louisiana. Temple will take office in January.
