Louisiana homeowners feel desperate as rising premiums drown out spending

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The American dream is being crushed by today’s insurance market for many Louisiana homeowners. Jeff Albright of Independent Insurance Agents and Brokers of Louisiana says premiums have doubled for many homeowners, and others have seen an increase of around $3,000 a year or more. After hurricanes Ida and Laura, several insurance companies went bankrupt. Other companies have stopped writing new policies. Some companies have raised their rates, and still others have left the state entirely. Recently, UPC also announced that it is leaving the state effective January 1, 2023. So what is the average homeowner supposed to do? Jeff Albright, CEO of Independent Insurance Agents and Brokers of Louisiana, suggests shopping around and doing your research because there are still options. Second, he wants you to consider a higher deductible which will lower your premium. It may not sound appealing, but it’s a way to help you save money. “While it’s not fun to have a higher deductible, it can save you a premium,” Albright said. It says don’t adjust your blanket, as tempting as that sounds. Insurance Commissioner Jim Donelon says there is relief on the horizon. He tries to attract more insurance writers to the area by offering them bonuses or incentives. “Several companies have told me that if we make it through this hurricane season uneventfully and are close to it now, they will resume writing new business even in difficult areas like St. Tammany Parish, Orleans and Parish of Jefferson,” Donelon said. More private insurers in the market will help lower rates. Its $15 million incentive package must be approved by lawmakers after the revenue estimate conference meeting in December. If all goes as planned, insurers should start participating in 2023 because we can get a favorable legislature for matching funding from the insurance company to the insurance department,” Donelon said. Many homeowners whose policies have been dropped have turned to Citizens Insurance, which is the common carrier of last resort. By law, the rate for citizens is higher than that of a private insurer to prevent it from becoming too big and putting the state at financial risk. Unfortunately, citizen fares have increased by 63% recently.

The American dream is being crushed by today’s insurance market for many Louisiana homeowners.

Jeff Albright of Independent Insurance Agents and Brokers of Louisiana says premiums have doubled for many homeowners, and others have seen an increase of around $3,000 a year or more.

After hurricanes Ida and Laura, several insurance companies went bankrupt.

Other companies have stopped writing new policies.

Some companies have raised their rates, and still others have left the state entirely. UPC also recently announced that it is leaving the state effective January 1, 2023.

So what is the average homeowner supposed to do?

Jeff Albright, CEO of Independent Insurance Agents and Brokers of Louisiana, suggests shopping around and doing your research because there are still options.

Second, he wants you to consider a higher deductible which will lower your premium.

It may not sound appealing, but it’s a way to help you save money.

“While it’s not fun to have a higher deductible, it can save you a premium,” Albright said.

It says don’t adjust your coverage, even though it might sound tempting.

Insurance Commissioner Jim Donelon says there is relief on the horizon.

He tries to attract more insurance writers to the area by offering them bonuses or incentives.

“Several companies have told me that if we make it through this hurricane season uneventfully and are close to it now, they will resume writing new business even in difficult areas like St. Tammany Parish, Orleans and Parish of Jefferson,” Donelon said.

More private insurers in the market will help lower rates.

Its $15 million incentive package must be approved by lawmakers after the revenue estimate conference meeting in December.

If all goes as planned, insurers should start participating in 2023.

“It will happen as soon as we can get a legislature that supports matching funding from the insurance company to the insurance department,” Donelon said.

Many homeowners whose policies have been dropped have turned to Citizens Insurance, which is the common carrier of last resort.

By law, the rate for citizens is higher than that of a private insurer to prevent it from becoming too big and putting the state at financial risk.

Unfortunately, citizen fares have increased by 63% recently.

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