New LA Law - Insurance Companies Can Cancel Up To 5% Of Their Long-Time Home Insurance Policies Each Year

Taste the freedom, Louisiana!!!

Louisiana homeowners will no longer have the assurance of holding onto their longtime property insurance policies after a damaging storm. And they could start seeing increases in premiums and deductibles since the state’s insurance commissioner convinced lawmakers to deregulate Louisiana’s insurance industry.

In the past, most Louisianans who purchased homeowners’ insurance could not be denied coverage, face larger deductibles or be burdened with repeated rate increases if their policies had been in effect for more than three years — a law that was unique to the state. Starting next year, insurers are allowed to cancel up to 5% of their three-year rule policies each year in Louisiana, a state that has been hit repeatedly by devastating hurricanes.

These changes — approved by the Legislature and signed by GOP Gov. Jeff Landry — come at a time when households in many parts of the country are grappling with escalating property insurance premiums attributed to increased damage from climate-fueled storms and wildfires. Consumer advocates say lawmakers have allowed the insurance industry to use the threats posed by climate change to make it harder for policyholders to get their claims paid when they need them most. The law changes also insulate the powerful insurance lobby, which could be an influential voice in demanding change to limit greenhouse gas emissions that fuel climate change.

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A survey published last year by Louisiana State University’s Reilly Center for Media & Public Affairs reported that 17% of Louisiana homeowners’ insurance customers surveyed said their policies were canceled; 63% had premium increases between 2022 and 2023. And under the new changes in Louisiana, insurers can enact rate increases whenever they want, unless Temple, the insurance commissioner, rejects them within a 30-day review period. John Ford, deputy commissioner for Louisiana’s Department of Insurance, said Temple can still deny rate increases for any reasons allowed under the previous system within that 30-day window. Ford said the goal is to make insurance available, affordable and accountable by setting clear expectations and working with insurers to make sure policyholders are treated fairly.

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https://floodlightnews.org/louisianas-business-friendly-climate-response/