BATON ROUGE, La. – Louisiana leaders held a press conference today to provide an update on the state’s efforts to address the ongoing home insurance crisis. The conference was led by Governor John Bel Edwards and Insurance Commissioner Jim Donelon, who were joined by representatives from the insurance industry and consumer advocacy groups.
Background on the Home Insurance Crisis
The cost of home insurance in Louisiana has been steadily rising for several years, with many homeowners seeing their premiums double or even triple. This increase is due in part to the state’s high risk of natural disasters such as hurricanes, flooding, and tornadoes. Additionally, insurance companies have faced significant losses due to these events, leading them to raise rates to compensate for their losses.
The crisis has left many Louisiana residents struggling to afford adequate home insurance coverage, and has made it difficult for some to obtain coverage at all. In 2020, a report from the National Association of Insurance Commissioners found that Louisiana had the second-highest average homeowners insurance premiums in the country, behind only Florida.
Efforts to Address the Crisis
Louisiana leaders have been working to address the home insurance crisis for several years, with efforts focused on both short-term and long-term solutions. Some of the initiatives that have been implemented include:
Creating a state-run insurance company, Louisiana Citizens Property Insurance Corporation, to provide coverage to homeowners who cannot obtain it through the private market.
Offering tax credits to insurance companies that invest in Louisiana’s coastal restoration projects.
Advocating for federal funding to support hurricane protection and flood mitigation efforts.
Conducting investigations into insurance companies that are suspected of engaging in unfair practices.
Update on Recent Developments
During today’s press conference, Governor Edwards and Commissioner Donelon discussed several recent developments in the state’s efforts to address the home insurance crisis. These included:
A new law that will allow insurance companies to offer homeowners policies with higher deductibles in exchange for lower premiums. This law is intended to give homeowners more options when it comes to insurance coverage, and to encourage private insurers to remain in the Louisiana market.
An agreement reached between the state and the insurance industry to extend a moratorium on policy cancellations and non-renewals until July 1, 2022. This extension will provide additional time for homeowners who are struggling to find affordable coverage.
The launch of a new online tool, the Louisiana Home Insurance Comparison Guide, which allows consumers to compare rates and coverage options from different insurance companies. The tool is intended to help homeowners make informed decisions about their insurance coverage.
Reaction from Stakeholders
The announcement of these developments was met with mixed reactions from stakeholders. Some praised the efforts of Louisiana leaders to address the home insurance crisis, while others expressed concern that the measures taken thus far may not be sufficient.
Consumer advocacy groups, such as the Louisiana Fair Access to Insurance Requirements (FAIR) Plan, applauded the extension of the moratorium on policy cancellations and non-renewals, but emphasized the need for long-term solutions to address the underlying issues driving the crisis.
Meanwhile, representatives from the insurance industry expressed support for the new law allowing for higher deductibles, but raised concerns about the potential impact of the state’s high-risk environment on the availability of affordable coverage.
Looking Ahead
Despite the progress made in recent years, the home insurance crisis in Louisiana remains a significant challenge, and one that will require continued attention and effort from leaders at all levels.
Moving forward, Louisiana leaders have expressed a commitment to exploring additional solutions, such as expanding the state-run insurance company and pursuing further investments in coastal restoration projects.
As Governor Edwards noted during today’s press conference, “We know there is still work to be done, but we are committed to doing everything in our power to ensure that Louisiana residents have access to affordable and reliable home insurance coverage.”
