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Louisiana Property Owners Getting a Small Insurance Break

Josh Montford rests his head in his hand while going through his flood damaged home in the aftermath of Hurricane Ida, on Sept. 1, 2021, in Jean Lafitte, La. “I’m overwhelmed,” said Montford as he searched for items to salvage.
(AP Photo/John Locher)
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Josh Montford rests his head in his hand while going through his flood damaged home in the aftermath of Hurricane Ida, on Sept. 1, 2021, in Jean Lafitte, La. “I’m overwhelmed,” said Montford as he searched for items to salvage.

The 1.36% assessment on all Louisiana residential and commercial property insurance policies will disappear in April.

Louisiana Residents with property insurance are getting a small break. Insurance Commissioner Tim Temple says the 1.36% assessment on all residential and commercial property insurance policies will disappear in April. That assessment has been paying off bonds that Louisiana Citizens Insurance incurred from claims after hurricanes Katrina and Rita.
Louisiana Citizens is the insurance of last resort and is state-mandated to be more costly than private property insurance companies. As Jeff Palermo with the Louisiana Radio Network reports, Temple says the Citizens Board determined that they have enough money to pay off the loans. “You know, you can’t pay the bonds early, but what it will do, is pay for the assessment that we would have been paying this year through June of ‘26.” Temple says this will result in a $100 savings for residential property insurance policies and $200 for commercial policyholders. “It’s not a whole lot of money but $100 is a $100 and I would rather see my fellow citizens keep more money in their pocket, than pay it on insurance,”

Source: Bejamin J. Keys and Philip Mulder, National Bureau of Economic Research, June 2024.
Source: Bejamin J. Keys and Philip Mulder, National Bureau of Economic Research, June 2024.

Citizens’ Policyholders are also getting a break. A new law, [Senate Bill 113 / Act No. 757], approved by lawmakers in late May of the 2024 regular session, went into effect January 1. The measure waves the 10% surcharge on all new policies and renewals for the next three years, which means lower premiums. Temple added, “They should see a slight decrease, it’s around a negative 5% decrease.”
There are 115,000 Citizens policyholders, down from 140,000 after the hurricanes of 2020 and 2021.

Originally from the Pacific Northwest, and a graduate of the University of Washington, Jeff began his on-air broadcasting career 33 years ago in the Black Hills of South Dakota as a general assignment reporter.
Vice President of News, Sports, & Affiliate Relations Louisiana Radio Network.