A new Louisiana law allows insurers to cancel more homeowners’ policies, raising premiums and deductibles and potentially increasing financial strain for residents.
Louisiana’s Legislature approved a law permitting insurers to cancel up to 5% of longstanding policies annually.
Consumer advocates warn the law will lead to higher premiums and increased financial hardships for residents.
The state’s Insurance Commissioner argues deregulation is necessary to stabilize the market and attract more insurers.
Key quote:
“I speak with consumers every day. Based on what I’m hearing from them and based on my own experience, insurance becoming too expensive for homeowners isn’t a potential future event — it’s the status quo and has been for quite some time.”
Homeowners in the nation’s most flood-prone areas are facing huge price increases for flood insurance that could cause hundreds of thousands of people to cancel their policies and risk financial ruin if their home is flooded.
From Lake Charles to Houma to New Orleans, storm-battered communities across south Louisiana are fed up with insurers – and so too are their legislators.
