NEW ORLEANS — Coastal zone homeowners who use citizens may soon see relief in their insurance rates. This after lawmakers agreed to suspend and reduce a ten percent surcharge.
“For the next three years, we’re going to suspend the coastal parishes of that ten percent,” said state Senator Kirk Talbot. “So, they will be at zero percent and for the rest of the state leave it at 5 percent.
Representative Matt Willard initially proposed the idea earlier in the session. Willard’s bill was rejected, but on Tuesday, it was revived as an amendment to Sen. Talbots' bill.
“I’m just happy to see something good happening for the people of Louisiana,” said Willard. “Especially in the greater New Orleans area where you have so many policyholders who, because the state has failed to provide a competitive insurance market, have no option but to go with Louisiana citizens.”
WWL Louisiana legal analyst Clancy Dubos says the Bipartisan effort shows promise for homeowners.
“Insurance is uppermost in voters minds,” said Dubos. “This is a sign that legislators are listening to voters, and they are doing something about it. It's not a cure-all; it's temporary for three years, but at least it’s a step in the right direction.”
Talbot cited state insurance commissioner Temple’s package of insurance bills recently signed into law as evidence that the insurance market will rebound in Louisiana.
“About a half a dozen bills, those are the bills that are designed to attract companies to come to Louisiana and start writing policies again,” said Talbot. “Inspire competition; competition is where we get availability, which turns into lower rates.”
Rep. Willard has his reservations about the rebound effort.
“I have my own doubts,” he said. “Especially with the elimination of the three-year rule, which was the best consumer protection people in Louisiana had against insurance companies acting in bad faith.”
The bill will be sent to the House and Senate for full approval and then to the governor’s desk to become law.
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