Donelon proposed setting apart $45 million for an incentive fund beforehand established by lawmakers, to entice as much as seven insurers to begin writing insurance policies in Louisiana.
“Insurance coverage Commissioner Jim Donelon has burdened that funding the Insure Louisiana Incentive Fund can not wait till the common session in April,” mentioned Edwards. “I’m grateful for the cooperation of the Senate President and Home Speaker and the legislature in calling this particular session centered on this Fund.
“Whereas Commissioner Donelon says we should do that now, that is only a first step in addressing Louisiana’s ongoing insurance coverage points after the devastating hurricane seasons of 2020 and 2021, a disaster worsened by hurricanes and wildfires in different states in 2022.”
The particular session will probably be held from January 30 to February 05, native Louisiana information outlet WAFB Channel 9 reported.
Edwards and Donelon’s considerations will not be unfounded. Final yr alone noticed eight insurers exit of enterprise, whereas a number of others had knowledgeable clients that they might cease writing new enterprise in Louisiana. The surge of insured losses from hurricanes over the previous years has additionally contributed to the state’s deteriorating insurance coverage market.
So troubled is the house insurance coverage market in Louisiana, that the state’s insurer of final resort Residents Property Insurance coverage can also be being overwhelmed. Donelon final week defined that Residents covers about 125,000 households – simply over twice the estimated 65,000 it will probably realistically deal with – and that customers with Residents are going through premium hikes of as much as 63%.
Louisiana was not too long ago ranked tenth costliest state for house insurance coverage in a nationwide research performed by Clearsurance. Based on the research, the common insurance coverage fee within the state for a $200,000 house was $1,736. By comparability, owners in Hawaii – the state with probably the most reasonably priced house insurance coverage charges – pay solely $327 for a $200,000 property.