La. Insurance Commish Courting More Insurance Companies

State Insurance Commissioner Jim Donelon says he is working to get at least a “half-dozen” more companies to write homeowners policies in Louisiana in an effort to ensure affordable premiums for coastal residents.

Currently, there are 20 insurance companies in the state that each write one percent or more of the homeowners’ policies in the state.

Donelon, a featured speaker at the Louisiana Surplus Lines Association convention Friday, said that number should be higher.

“I want to go out and let companies know that they can be successful in Louisiana. I also want to make sure that existing companies will expand their writing,” he said.

Donelon said policyholders also should be aware that the state generally prevents insurance companies from dropping policyholders who have been with a company for at least three years.

In the past, companies were allowed to drop policyholders if they determined a substantial change in risk existed at a certain property. Damage from hurricanes would apply, but Donelon extended an emergency rule that prevents insurance companies from dropping customers because of damage from Hurricanes Rita and Katrina.

That rule, originally enacted by previous Insurance Commissioner Robert Wooley, was extended to the end of the year by Donelon, who took office in February.

Donelon also noted that all Louisiana residents have the option of getting insurance through the Louisiana Citizens Property Insurance Corporation, which was created by the state Legislature in 2003 to act as a safety net for those who can’t get policies from private insurance companies.

“That coverage is not desirable because premiums are more expensive, but is available as a last resort,” Donelon said.

Latest Comments

• April 25, 2006 at 8:09 am

  Sam says:

  Why would anyone want to voluntarily come into a market such as this? Mississippi has ongoing litigation against major insurers trying to get policies to cover flood damage. ... read more