Louisiana Citizens Property Insurance Mulling Coastal Rate Hike

More than 65,000 homeowners in coastal parishes covered by the Louisiana’s property insurer of last resort could see their rates jump 10 percent in mid-August.

Under state law, Louisiana Citizens Property Insurance Corp. must charge 10 percent more than private insurance companies. While the state Legislature passed a separate law that exempted a dozen coastal parishes from the added charge, it expires Aug. 15, unless it is extended.

The Citizens board has voted to prepare the new rate filing for those parishes, a process that will take roughly two months.

The law was originally intended to help coastal areas recover after hurricanes Katrina and Rita. But it’s been 10 years since the storms, the exemption is expiring and no bills have been filed to renew the exemption.

Citizens Chief Financial Officer Steve Cottrell said if the Legislature extends the exemption, Citizens won’t implement the new rates. But Citizens has to prepare now to be ready by August.

An additional 10 percent will hit hardest in Orleans and Jefferson parishes, which account for more than half of Citizens’ homeowner’s policies. In Orleans, Citizens’ 19,294 homeowner’s customers would see their rates increase an average of $224 a year. Jefferson’s 16,319 policyholders would see rates rise by $208. St. Tammany’s 3,624 policyholders’ rates would increase by $157.

The other average increases by parish are: Iberia, 2,860 policyholders, $114; Lafourche, 4,971 policyholders, $160; Plaquemines, 950 policyholders, $232; St. Bernard, 2,172 policyholders, $177; St. Mary, 2,134 policyholders, $122; Terrebonne, 6,699 policyholders, $162; Calcasieu, 2,890 policyholders, $104; Cameron, 465 policyholders, $213; and Vermilion, 2,804 policyholders, $116.

Topics Louisiana Pricing Trends Property