Americas Insurance Waiving Separate Deductible in Louisiana After Delta, Laura

October 29, 2020

Americas Insurance Company will be waiving a separate deductible for Hurricane Delta for Louisiana insureds that were impacted by both Hurricanes Laura and Delta, provided they have satisfied their full named-storm deductible.

According to Louisiana Insurance Commissioner Jim Donelon, for policyholders who were under their deductible for Hurricane Laura, the remaining balance will be charged for Hurricane Delta, a large savings for those policyholders.

USAA previously committed to waiving any additional deductibles for insureds affected by both storms, the Louisiana Department of Insurance reported.

Louisiana’s single-season named-storm/hurricane deductible law prevents admitted insurance companies regulated by the LDI from charging more than one named-storm/hurricane deductible per year. But the law leaves companies free to charge the normal policy deductible on subsequent claims once the named-storm/hurricane deductible has been exhausted during a calendar year.

The Louisiana Legislature created the single-season deductible law in 2009 after hurricanes Gustav and Ike hit Louisiana and Texas two weeks apart in 2008, illustrating the potential for two hurricane deductibles in the same season.

Named-storm/hurricane deductibles are typically 2% to 5% of the insured value of a home. Americas Insurance Company’s regular policy deductibles are typically $500 to $2,500 per claim.

In 2019, the Americas Insurance Company group covered 1.1% of the homeowners insurance market in Louisiana.

Source: Louisiana Department of Insurance

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