Louisiana Homeowners Suffer Insurance Rate Increase

Louisiana homeowners covered by the state-run last resort property insurer could see a rate increase this year. The board in charge of Louisiana's property insurance company of last resort, Louisiana Citizens, has asked Insurance Commissioner Jim Donelon to approve an overall average 9-percent rate hike for homeowner's policies. Donelon says this is not an unusual request. Donelon says the laws that created Citizens require that it be non-competitive with private insurers; keeping its rates higher than private market homeowners policies on a statewide average. Donelon says the decision on the rate hike could take up to 90 days.(If approved, the rate increase would take effect July 1st) Donelon's office can either reject or approve the rate request, as it sees fit. If approved, about 115-thousand homeowners under Louisiana Citizens could see their annual premium costs go up by around $200. Donelon says the decision is a matter of where Citizens' rates are, as compared with the private market.