Residential property insurance rates for Louisiana Citizens Property Insurance will rise by 2.3% this year, the state’s Insurance Commissioner Jim Donelon has confirmed.
The increase is in line with current inflation rates and is seen as a reflection of stability and appropriate rates in Louisiana’s residential insurance market.
By law, rates at Citizens, Louisiana’s market of last resort, must be higher than the private market for home insurance.
“Citizens is currently in a strong financial place despite the multiple hurricanes that hit Louisiana during the last storm season, resulting in a minimal overall increase needed to continue to provide property insurance to Louisiana’s most vulnerable policyholders across the state,” said Commissioner Donelon.
Citizens covers properties that can’t find coverage in the private market, including residential and commercial and those in locations where private insurers don’t want to do business.
Commissioner Donelon approved the rate filing of +2.3% for personal property policies in the FAIR and Coastal Plans this month after the proposed rate change was found to be appropriate based on actuarial and market analysis in compliance with Louisiana law.
The rate change will affect approximately 34,400 policies and takes effect for both new and renewing policies starting on June 1.
