ST. CHARLES PARISH, La. — Once again, insurance renewals are increasing across southern Louisiana with little relief in sight.
St. Charles Parish Justice of the Peace, Zack Young, already experienced a huge hike in February.
Young was stuck with a new insurance company after his company folded following Hurricane Ida. The new policy was almost a 250 percent increase, nearly doubling his house note.
Now, like many folks, Young is up against yet another surge on his latest renewal.
“Just this last week I received a renewal on one of my properties where we went from about 1,800 to 4,400 a year," Young said.
Young said these increases impact homeowners and renters. Sometimes landlords pass on the cost to renters.
"There seems to be a lot of fear about the affordability of staying in the area we live in," Young said.
Young said he would never leave Louisiana, but many are faced with that difficult decision.
“Look, I think our legislators need to come to the table and come up with some solutions. There’s some regulations and some things that we do that are not friendly to the insurance companies. We need to figure out a way to entice them to come here and stay here," Young said.
Earlier this year, the state legislature passed a $45 million incentive fund to bring more insurance companies to Louisiana.
A grant program, Louisiana Fortify Homes, was also established to pay homeowners to install fortified roofs. However, there are limitations on who qualifies.
Young said he had already replaced his roof after Ida before the program began.
Not to mention, Young said he's noticed insurance companies requiring a minimum to write a new policy.
“They want to over insure us. Let’s just say to the tune of $300,000. If I have a 5 percent deductible, that’s a $15,000 deductible before they pay me a penny. So, if my roof costs $8,000, I’m essentially self-insured for a minor storm. That’s not insurance," Young said.
Louisiana's insurance commissioner-elect, Tim Temple, has called what's happening with homeowners' insurance a 'crisis.'
Temple said he wants to create a 'competitive environment' that makes insurers want to do business in Louisiana. Temple takes office in January.
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