Louisiana Citizens Property Insurance Corporation, the state-operated provider of home insurance, will submit new homeowners insurance rates to the state’s insurance department for approval this month. The company’s board of directors voted Thursday to submit the new rates to the Louisiana Insurance Department. The proposal would increase the homeowners insurance rates for some parishes, while other parishes will see declining premiums. If the insurance department approves of the proposal, the new rates could go into effect by June 30.
Citizens Proposes Homeowners Insurance Rates
The state-run insurance provider, according to its website, was “created to provide insurance products” for home and business owners who are “entitled, but unable, to procure insurance through the voluntary insurance marketplace.: The company develops a schedule of homeowners insurance rates for different property types, locations and conditions. Citizens’ must then submit its new homeowners insurance rates to the state’s insurance department for approval.
Details on Homeowners Insurance Rates Proposal
The average Citizens’ policy holder pays $1,680 in annual premiums. The proposed homeowners insurance rates would bring lower premiums for homeowners in inland areas near New Orleans. A report on the proposed homeowners insurance rates showed that residents of inland areas of Orleans Parish could see a decrease of up to 6.3 percent in their premiums. Coastal residents of Orleans Parish could see rates drop by more than five percent, while coastal homeowners in Jefferson Parish could see rates drop by as much as 6.4 percent.
Parishes See Double-Digit Boosts In Homeowners Insurance Rates
However, not all coastal residents will see any relief in their homeowners insurance rates. In some parishes, the rates are expected to increase by 15 percent or more. Livingston residents could see their homeowners insurance rates increase by 15.8 percent. Coastal residents of Terrebonne Parish could see increases as much as 17.8 percent. Lafource Parish homeowners will see increases of five percent for inland properties, with a slightly higher boost for coastal residents.
Homeowners Insurance Rates and Reinsurance
A major influence in the calculation of homeowners insurance rates comes from re-insurance. Insurance providers purchase re-insurance to protect themselves from severe losses. Officials with Citizens expect their re-insurance costs to fall by as much as five percent, which will save the company as much as $5 million. The company will adjust its homeowners insurance rates across several parishes based on several factors, including the type of dwelling and proximity to the coastline.
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NOTE: This blog post is a news story and does not imply an endorsement of Arguello Law Firm by any of the parties mentioned herein.