Louisiana Parish Asks Legislature For Reduced Homeowners Insurance Rates

The council for a Louisiana parish recently passed a resolution asking its local legislators to seek relief for residents’ high homeowners insurance rates. The Terrebonne Parish Council authorized a resolution calling for the its state representatives and other officials to support decreases in homeowners insurance rates in coastal areas. Parish leaders are hoping to restrict the increasing cost of homeowners insurance premiums brought on by penalties from Citizens Insurance, the state-run insurance carrier.

Details of the Homeowners Insurance Rates Resolution

Council member Arlanda Williams told reporters that the resolution would prompt state officials to pursue removing the penalties and enacting other reform measures to reduce homeowners insurance rates. She said that the reform measures would work in a similar way to those recently enacted by Florida, another state with high homeowners insurance rates due to hurricanes and other major weather systems. After the resolution received its approval, parish officials sent copies to the parish’s legislative delegation, as well as Governor Bobby Jindal, Lieutenant Governor Jay Dardenne, and Insurance Commissioner Jim Donelon.

Ten Years Later, Louisiana Homeowners Insurance Rates Still High

In 2005, Louisiana was targeted by Hurricanes Katrina and Rita. The storms caused billions of dollars in damages across the state’s coastal parishes. Many private insurance carriers refused to issue policies to area residents after the storms. Citizens Insurance, also known as Louisiana Citizens Property Insurance Corporation, provides insurance coverage to residents who were denied coverage from private carriers. The resolution seeks to help those residents whose homeowners insurance rates through Citizens are higher than they would pay if private coverage were available.

High Homeowners Insurance Cause “Significant Problems”

According to state law, Citizens must charge higher homeowners insurance rates than private carriers, so as not to compete with private firms. The Terrebonne Parish resolution states that area residents “have had significant problems with increases in homeowners’ policy premiums and the availability of adequate coverage.” The resolution also states that increases in homeowners insurance rates have caused homeowners without mortgages to drop their coverage “because it was unaffordable and/or unavailable.”

Young and Old Affected By High Homeowners Insurance Rates

Terrebonne Parish Councilman Dirk Guidry, who voted for the resolution, cited a problem with high homeowners insurance rates in his own family. He told reporters that his mother-in-law dropped her coverage due to the increased homeowners insurance rates. “She’s on a fixed income. She’s 93 years old and she can’t afford to pay” the higher rates. He also cited instances in which young buyers have a difficult time, especially those who want to buy homes closer to the coast, since “the insurance is higher than the home note.”

Source: Daily Comet

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