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Louisiana homeowners insurance market “unraveling.”
Posted on 4/2/22 at 8:41 am
Posted on 4/2/22 at 8:41 am
I posted the other day about my premium more than doubling. I have talked to 3 different agents since then and am trying to get some new quotes. I may save a couple grand a year at most. And as a lawyer who represents insurance companies, I can tell you for a fact that most are about to say frick it. All this grandstanding by legislators declaring war on insurers is going to result in nobody wanting to write business here.
https://www.nola.com/news/article_1aa57ff2-b205-11ec-8b04-5391d3bc8214.html
https://www.nola.com/news/article_1aa57ff2-b205-11ec-8b04-5391d3bc8214.html
quote:
It’s the latest sign of a deepening crisis taking shape once again in Louisiana, where the legacy of Hurricane Katrina and other storms still looms large. As big national insurers pulled out of coastal areas in the southeast, homeowners increasingly relied on less-regulated regional insurance providers to make them whole in case of catastrophe. Now, even some of those companies — once willing to make a risky bet — are leaving.
quote:
In the years since the catastrophic storms of 2005, the homeowners insurance market for coastal Louisiana has been propped up by a number of companies who were lured to the state.
These firms are a fraction of the size of a company like State Farm, and live or die based on the amount of reinsurance — insurance for insurers — that they have to back up the policies they write in risky areas. They’re also known as non-admitted companies, which means their rates are not regulated by the state, and they can charge as much as they want.
Donelon said attracting these companies, mostly from Florida, has been the best way to ensure that homeowners had options to buy coverage outside of Louisiana Citizens, the state-run insurer of last resort.
“Those companies are small, they are regional, and the only way that they can take on that exposure that primarily national companies don’t want is by reinsuring themselves up to their chin,” Donelon said.
“We were successful (in attracting them), but some of those companies miscalculated their risk. All four (companies) would have been fine if it was just Laura, Delta and Zeta. But Ida, on top of those three, broke their backs, because they were inadequately reinsured.”
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Posted on 4/2/22 at 8:48 am to Slippy
Yeah I got dropped (expires in May). My agent says that I can expect to pay 2x what I was paying and hope for the best.
I was worried about trying to get as much as I was entitled to out of fear of being dropped but an agent family member basically told me they were probably going to drop you any way so go get your $.
I was worried about trying to get as much as I was entitled to out of fear of being dropped but an agent family member basically told me they were probably going to drop you any way so go get your $.
This post was edited on 4/2/22 at 8:50 am
Posted on 4/2/22 at 8:50 am to STEVED00
Does this unraveling extend to inland parishes like EBR ?
Posted on 4/2/22 at 8:51 am to Slippy
Yep.
Homeowners insurance is a loser. Most of these companies' bottom lines are supported through their auto business and that's becoming dicey because of the litigation environment.
Wouldn't be a bit surprised to see a major exodus of all lines out of Louisiana in the next 6-12 months.
Homeowners insurance is a loser. Most of these companies' bottom lines are supported through their auto business and that's becoming dicey because of the litigation environment.
Wouldn't be a bit surprised to see a major exodus of all lines out of Louisiana in the next 6-12 months.
Posted on 4/2/22 at 8:52 am to Slippy
Even government companies? USSA
Posted on 4/2/22 at 8:52 am to Slippy
We got dropped by Geovera late last year effective this June
Expecting to eat a shite sandwich
Expecting to eat a shite sandwich
Posted on 4/2/22 at 8:53 am to Slippy
quote:
Louisiana homeowners insurance market “unraveling.”
wind and hail mostly, but yep....there are about 7 left
Posted on 4/2/22 at 8:54 am to STEVED00
We increased our coverage by 20 grand and kept our deductible at $1000 for hurricane but our premium almost doubled for this coming year. Very frustrating. Bumped up our house note by about $180/ month which isn’t a huge deal but that money was originally going back towards principle. Our agent told us the cost of insuring for these companies has increased significantly.
Posted on 4/2/22 at 8:55 am to jamboybarry
What's funny is the legislature is ignoring an object lesson in workers comp.
Carriers were bailing left and right so they completely revamped the system and created LWCC. It took some time, but there are now plenty of wc carriers in the state and rates are actually pretty decent considering the high risk industries here.
But there's way too many TV lawyers and legislators (and judges and clerks of court) sucking on that tit to ever restrain that industry.
Carriers were bailing left and right so they completely revamped the system and created LWCC. It took some time, but there are now plenty of wc carriers in the state and rates are actually pretty decent considering the high risk industries here.
But there's way too many TV lawyers and legislators (and judges and clerks of court) sucking on that tit to ever restrain that industry.
This post was edited on 4/2/22 at 8:57 am
Posted on 4/2/22 at 8:56 am to Lsupimp
quote:I would also like to know this.
Does this unraveling extend to inland parishes like EBR ?
Posted on 4/2/22 at 8:57 am to Slippy
Why does this surprise anyone?
The value of homes has probably doubled in the last 10 years. The cost of repairs has more than doubled because of the cost of goods being out of control due to inflation.
Inflation has a snowball effect throughout industries and it is just getting started. We got fricked so bad by these politicians printing money. They all need to be hanged.
The value of homes has probably doubled in the last 10 years. The cost of repairs has more than doubled because of the cost of goods being out of control due to inflation.
Inflation has a snowball effect throughout industries and it is just getting started. We got fricked so bad by these politicians printing money. They all need to be hanged.
Posted on 4/2/22 at 8:58 am to udtiger
quote:
Homeowners insurance is a loser. Most of these companies' bottom lines are supported through their auto business
People on the OT don’t want to hear that. People on the OT also, collectively, don’t know jack about insurance. You obviously know a little bit but be prepared, you’ll get destroyed for saying what you said.
Posted on 4/2/22 at 8:58 am to STEVED00
quote:
probably going to drop you any way so go get your $.
Exactly… anybody taking the insurance companies side must ain’t never had to deal with the insurance companies before
Posted on 4/2/22 at 8:59 am to udtiger
quote:
But there's way too many TV lawyers and legislators (and judges and clerks of court) sucking on that tit to ever restrain that industry.
You don’t think the cost of wood, shingles, drywall, etc doubling in price has anything to do with it?
Who do you think pays for those things when you file a claim?
Posted on 4/2/22 at 9:00 am to Slippy
I was dropped in February. Luckily found a new policy that only went up from $1600 to $1950 per year. But my hurricane deductible went up by a lot.
Posted on 4/2/22 at 9:06 am to lepdagod
quote:
Exactly… anybody taking the insurance companies side must ain’t never had to deal with the insurance companies before
And while there are certainly awful insurance agents, there are indeed others who have to deal with so many false claims and crap that it ruins it for everyone.
We have had three agencies fold recently, another is about to fold, AIG is leaving...These organizations do exist to make a profit. If that isn't possible, they can't stay in business. Hell, this is happening in California where agencies are refusing to write wildfire coverage. It isn't solely a Louisiana issue...but it is exacerbated because of our recent storm history, supply chain issues, labor issues, and the like.
The cost to replace the home that you bought for $300,000 several years ago is not going to be $300,000 now.
Posted on 4/2/22 at 9:07 am to LSUEEAlum
Guess what, your health insurance is going to go up dramatically. Your auto insurance is going to go up as well.
The cost of goods and labor is increasing rapidly.
Only a fool would think that this wouldn’t lead to an increase in insurance for these commodities and services. It just takes time to reverberate through the economy.
Everyone blowing off inflation doesn’t understand how big of a deal it is.
The cost of goods and labor is increasing rapidly.
Only a fool would think that this wouldn’t lead to an increase in insurance for these commodities and services. It just takes time to reverberate through the economy.
Everyone blowing off inflation doesn’t understand how big of a deal it is.
Posted on 4/2/22 at 9:07 am to WaWaWeeWa
quote:
You don’t think the cost of wood, shingles, drywall, etc doubling in price has anything to do with it?
Who do you think pays for those things when you file a claim?
You missed my point.
Auto insurance lines are typically what keeps insurers in the green. It allows them to write property and casualty at a "loss."
Yes, the potential cost of repair/replacement does play some role in calculation of premium; however, when your golden goose is being routinely plucked and cooked because of litigation, writing homeowners insurance at a "discount" (or, at all) ceases being a viable model.
Posted on 4/2/22 at 9:12 am to jdaute2
I tried to tell people this was happening throughout the coastal areas and got downvoted to oblivion.
In parts of FL and the gulf coast the major players are not writing within 5 miles of the coast. It’s going to be a huge mess the next time a storm hits.
Car insurance quote jumped 2x without any change to my record or credit.
In parts of FL and the gulf coast the major players are not writing within 5 miles of the coast. It’s going to be a huge mess the next time a storm hits.
Car insurance quote jumped 2x without any change to my record or credit.
This post was edited on 4/2/22 at 9:14 am
Posted on 4/2/22 at 9:14 am to Michael T. Tiger
quote:
These organizations do exist to make a profit. If that isn't possible, they can't stay in business.
Agreed… with that said… the insurance companies take on that risk for profits… the keywords in that phrase are risk and profit… shite bound to happen … of course stuff happing all at one time isn’t ideal but it’s the risk they take for the profits…
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