LOUISIANA, USA — With new bills recently passed to help the insurance crisis, could we see homeowners' insurance premiums come down?
The insurance commissioner said the greater New Orleans area has some of the highest costs for both car and home insurance and while some see the changes going in the right direction, others think it will only make a small dent in costs.
First, there was the $55 million incentive program to bring more insurance companies to the state and help the reinsurers feel comfortable about taking the risk. So far, there are eight new insurance companies. That helps by giving you more choices, creating competition, which drives premium prices down.
“I learned the incentive companies have already written several million dollars in new premiums under the program,” said Insurance Commissioner Jim Donelon, Louisiana Department of Insurance.
But it falls short because they may reach their mandated limit on new policies in Orleans, Jefferson, and St. Tammany parishes, which are the most populated.
Some insurance agents think the best time to shop for a cheaper premium is mid-hurricane season, beginning Oct. 1. While the insurance commissioner said he thinks people should look now.
“I encourage anyone looking for a new policy to shop around at least once a month until you find coverage, in particular, if you're being hit with the 63% rate increase citizens had to take at the end of last year,” said Donelon.
Next, the fortified homes program was funded with $30 million. It helps those eligible, to apply for a grant towards a stronger new roof. And insurance companies are mandated to give discounts for that.
“I believe this program will help a lot of folks resist storm damage in the near future, potentially reducing residential property insurance cost for the entire state,” said Rep. Mike Huval, who chairs the House Insurance Committee.
It falls short if you have to spend thousands of dollars to retrofit your home’s roof first.
And finally, some new laws were passed on tort reform, like giving you the right to get a public adjustor if you feel your damage claim is not paid fairly, but other bills that would make it harder for lawsuits and all their added costs failed. Florida passed them, and insurance companies came back.
“Fixing their bad broke system. Now we're the state in most jeopardy because we're the second most attractive market for litigation over homeowners claims,” said Donelon.
“And it was a frustrating thing, and that was the bill that could have moved the needle more than anything, and unfortunately we're right back where we were and other states have fixed those problems,” added Sen. Kirk Talbot, who chairs the Senate Insurance Committee.
Even if you are in the middle of a current policy you can cancel it with no penalty, get a partial refund, and buy the less expensive new policy.
And if you want to see if you qualify and apply for grant money towards the cost of a fortified new roof, you can follow when they are available here. However, the program isn't set to open until at least October, according to an official from the Louisiana Department of Insurance. Applicants may be able to view program details on the website as soon as August.
You can also find more specifics on the grants, here.
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