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Louisiana Insurance Commissioner Predicts Homeowners Insurance Rates Will RIse

On top of the hurricanes we've seen here in South Louisiana, the strain on the global reinsurance market is expected to lead to higher homeowners insurance rates throughout the state.

Posted: Nov 11, 2020 9:31 AM
Updated: Nov 11, 2020 9:32 AM

LAFAYETTE - It's been a tough year to live in a coastal state. However, when it comes to natural disatsters, Louisiana is not alone.

"We've had earthquakes in Turkey and Greece that have cost insurers a huge amount of money as well," explains Louisiana Insurance Comissioner Jim Donelon, "Wildfires in California that have cost a lot of money. It has just been a very catostrophic year compared to years past."

This puts a burden on global reinsurance companies, where the insurance companies we deal with get their insurance from.

"I anticipate what had been a soft reinsurance market becoming much more expensive," says Donelon.

It's a sign that more money will be coming from homeowners' pockets.

Adds Donelon, "That cost of reinsurance gets passed on by these companies in their rate filings to their policy holders in each state that is so affected."

Comissioner Donelon predicts homeowners insurance in some areas will increase 5%-10%. This means if you're in the market for homeowners insurance, yyou need to learn how to be a savy shopper. For example, he says discounts are availble for houses that are up to state code, codes that were implemented during the late Kathleen Blanco's administration.

"A lot of times people will think, 'I'm just gonna go with one of the big brands and i'm sure that will be the best deal,' not always true," says Merrie Chris Leger, Broker Owner for Remax of Acadiana, "This is a time when it's definitely worth shopping your options"

Leger says doing this will pay off one way or another.

Explains Leger, "Give your local brokers a chance, because there's a very good likelyhood they can find you a better deal - and worst case, you'll at least walk away with a better understanding of how the whole insurance game is played."

When living in hurricane country, every penny counts.

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Abbeville
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Low-end severe potential tonight with flooding possible over the coming days

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