Louisiana Citizens’ Residential Property Rates To Jump By 63%

The Louisiana Department of Insurance (LDI) has approved Louisiana Citizens’ request for a 63% rate increase on its residential property insurance policies beginning January 1, 2023.

According to a statement from the LDI, the increase will not affect current policyholders of Citizens until they renew their policy after that date. Citizens is the state-backed insurer of last resort.

It also said that the rate increase is almost totally a result of the increased cost of reinsurance for Citizens’ increased number of policies this hurricane season.

The best way to reduce the burden of this and future Citizens rate increases is the Insure Louisiana Incentive Program, which is awaiting funding from the legislature.

Commissioner Jim Donelon said: ‘There’s no sugarcoating it -- this increase is extremely painful but required by law to make sure Citizens can handle a potential future disaster for its many policyholders. My staff and I are working with the legislature to attract more insurers to the state through the use of a program that was highly effective following hurricanes Katrina and Rita, which will give Citizens policyholders, and all Louisianans, more and cheaper insurance options in the private market.’