Insurance in the New Orleans area is absolutely abysmal right now. Changes in companies and policies are changing daily. Please note the info provided is good as of 6/22/22 and you should keep in touch with your insurance provider to get current details.
The Nitty Gritty
Hurricane Ida caused more of a financial loss for insurance companies in the state of Louisiana than Hurricane Katrina. Because of this, many insurance companies have either folded, left the state entirely, or have decided to not write new insurance policies for the time being.
One of the other issues Louisiana had is that our state’s insurance commissioner, Jim Donelon, didn’t fully do his job. His office, after Hurricane Zeta in 2020, did not check to see if insurance companies had enough money to remain solvent.
Worth noting, that in Louisiana, companies only need $2M on hand to be able to write policies. Florida requires companies to have $20M.
One of the other issues that companies were having, that forced many to fold, is that the cost of goods increased so rapidly, that when it came time to pay out claims they realized they weren’t charging enough to do business adequately.
Can I even get homeowner’s insurance?
Yes, you can. This is the reason Louisiana Citizens (also known as Fair Plan) exists. However, this has always been used as an option of LAST resort. Fast forward to today and they are one of the only options for people!
You may see those Allstate and State Farm commercials everywhere – but, they are not writing policies here. Allstate has not written new policies for wind and hail damage since Hurricane Katrina!
Who is writing new homeowners insurance policies?
There are very few and many have restrictions.
Can my older home get insurance coverage?
Yes, historic homes can still get coverage. You will just likely not love the prices offered to you.
What about newer homes?
Homes that are 10 years or younger have much better rates and options. State Farm will possibly write a policy for you, depending on location and build. National General could be an option as well!
Will companies come back to Louisiana?
Y’all better pray for a light hurricane season for the next two years. If this 2022 season is calm, you may see some companies come back into our market. If we have a good couple of years, then we will likely see even more.
Who should I contact for insurance? I need a new policy ASAP.
Many companies are remaining in Louisiana, but not writing new insurance policies. However, they may drop some policies for “exposure management” – whatever that means.
UPC and Occidental are currently still in the market, just no new policies.
We cannot stress the importance of understanding your new policy. Make sure you know how much you will need to pay out of pocket if you have a fire or major hurricane damage.
If you have to get Louisiana Citizens insurance, no upgrades (like a new roof) will help get your policy any cheaper.
Currently, with the insurance options available, the lowest hurricane deductible available is 2% of the total coverage on your home.
Need to talk home buying or selling? Contact us!