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Started By
Message
Homeowners Insurance - good news
Posted on 3/17/23 at 8:07 am
Posted on 3/17/23 at 8:07 am
Some relatively good news.
Nine companies have applied for specific insurance grants to participate in the our program designed to lure carriers -
Allied Trust Insurance Company ($6.5 million); Applied Underwriters ($10 million); Cajun Underwriters Reciprocal Exchange ($5 million); Constitution Insurance Company ($10 million); Elevate Reciprocal Exchange ($5 million); Gulf States Insurance Company ($3.6 million); SafePoint Insurance Company ($10 million); SafePort Insurance Company ($2 million); and SureChoice Underwriters Reciprocal Exchange ($10 million).
If they are approved, the companies have to match the grants they receive, write at least double the total in new policies and generate at least half of the policies in 37 southern parishes.
No clue if these companies are stable but they provide competition which could lower cost and relieve citizens from their growing burden. The effect could come as soon as next month.
This won’t be a long term answer either. It’s a patch job.
Long term solutions are varied and could take some hard work from legislators.
Nine companies have applied for specific insurance grants to participate in the our program designed to lure carriers -
Allied Trust Insurance Company ($6.5 million); Applied Underwriters ($10 million); Cajun Underwriters Reciprocal Exchange ($5 million); Constitution Insurance Company ($10 million); Elevate Reciprocal Exchange ($5 million); Gulf States Insurance Company ($3.6 million); SafePoint Insurance Company ($10 million); SafePort Insurance Company ($2 million); and SureChoice Underwriters Reciprocal Exchange ($10 million).
If they are approved, the companies have to match the grants they receive, write at least double the total in new policies and generate at least half of the policies in 37 southern parishes.
No clue if these companies are stable but they provide competition which could lower cost and relieve citizens from their growing burden. The effect could come as soon as next month.
This won’t be a long term answer either. It’s a patch job.
Long term solutions are varied and could take some hard work from legislators.
11
Posted on 3/17/23 at 8:18 am to SlidellCajun
This does nothing to solve the homeowners insurance issues in Louisiana.
Posted on 3/17/23 at 8:49 am to LSUgolf04
If It brings carriers into the state to write insurance in the state then how does it not do anything?
It’s not a longterm solution but it does look like a viable short term solution
It’s not a longterm solution but it does look like a viable short term solution
Posted on 3/17/23 at 9:00 am to SlidellCajun
quote:oh cool so the government is going to give them my tax dollars
the companies have to match the grants they receive
Posted on 3/17/23 at 9:00 am to SlidellCajun
My annually insurance cost is bonkers. I can’t imagine what it is in LA
Posted on 3/17/23 at 9:13 am to SlidellCajun
The biggest thing this does is puts a few quotes out there. That should help with Citizens pricing since they have to be more expensive than anyone else.
Posted on 3/17/23 at 9:31 am to LSUFanHouston
quote:
The biggest thing this does is puts a few quotes out there. That should help with Citizens pricing since they have to be more expensive than anyone else.
It’s somewhat of a desperation measure. Citizens is overwhelmed and if a big storm hits, their claims paying ability could be severely challenged and thus, the financial impact to the state. Imagine citizens becoming insolvent…. I hate to speculate on the ramifications.
So this is a short term relief effort to get carriers in state to write some insurance and take some of the burden off of citizens. It will likely provide some low cost insurance which is a relief to homeowners.
The caveat is that the carriers are probably not highly rated. They’re looking for that handout so that tells you something.
The bigger picture for Louisiana insurance wise is pretty dim though.
This post was edited on 3/17/23 at 9:42 am
Posted on 3/17/23 at 9:33 am to SlidellCajun
quote:
It’s somewhat of a desperation measure.
Do you think we are in anything but "desperate times" in this regard?
Posted on 3/17/23 at 9:44 am to Y.A. Tittle
quote:
Do you think we are in anything but "desperate times" in this regard?
I think it’s gotten to a desperation point. It’s unfortunate because it didn’t have to be this way.
But here we are.
Our Politicians are weak.
Posted on 3/17/23 at 10:02 am to SlidellCajun
All this will do is allow agents to get 4 quotes at crazy high premiums instead of just two. This will in no way lower the cost of home insurance any time soon. These carriers will have to take a certain number of policies off of the citizens book, which is much needed.
Posted on 3/17/23 at 10:18 am to MSTiger33
quote:
My annually insurance cost is bonkers. I can’t imagine what it is in LA
$8k for $500k of coverage
Posted on 3/17/23 at 11:38 am to Teddy1388
quote:
All this will do is allow agents to get 4 quotes at crazy high premiums instead of just two. This will in no way lower the cost of home insurance any time soon.
Won’t they have to come in at rates UNDER Citizens?
I mean that may not be much, but it’s a start if so.
Posted on 3/17/23 at 12:06 pm to Y.A. Tittle
No, Citizens will raise rates to be above the other carriers. What your saying is true, but the carriers can't lower rates until re insurance costs come down or just level out. Re insurance market forces these carriers to increase rates or their cost of reinsurance will be more than the premium they are taking in. It is a tough sell to get the global reinsurance market to write business on the coast.
Posted on 3/17/23 at 12:10 pm to Y.A. Tittle
quote:
Won’t they have to come in at rates UNDER Citizens?
Not sure that’s how it works
They quote whatever they want. Citizens- as insurer of last resort- HAS to quote higher than what the insured had prior or has otherwise.
Not sure but I think that’s how it works
Essentially, the state wants to make sure that citizens isn’t cutting rates of insurers writing business.
Posted on 3/17/23 at 1:15 pm to SlidellCajun
I thought tort reform was going to fix all our insurance owes?
/sarcasm
/sarcasm
Posted on 3/17/23 at 2:07 pm to SlidellCajun
Citizens rates have to be set 10% above the highest standard carrier in the state
Posted on 3/17/23 at 9:34 pm to Teddy1388
quote:
Citizens rates have to be set 10% above the highest standard carrier in the state
Exactly
So the new carrier entrants will most likely be cheaper than citizens
Posted on 3/18/23 at 3:40 pm to LSUgolf04
quote:
This does nothing to solve the homeowners insurance issues in Louisiana.
The solution as proposed is like trying to put out a house fire with a garden hose.
Insurance companies are feeling the credit crunch of higher interest rates, explosion in home costs and construction costs, and higher reinsurance costs. The smaller companies don’t have enough liquidity if another major storm were to strike. This 10 million here and there is maybe enough to insure 500 to 1,000 homes per company and those companies can charge what they want for premiums. They can cherry pick new homes and leave the older homes to Citizens. One interesting twist will be when Citizens has to readjust its rates since some companies are pricing policies that exceed the going rate of Citizens.
This post was edited on 3/18/23 at 6:29 pm
Posted on 3/18/23 at 4:01 pm to Tarps99
quote:
Tarps99
Nailed it.
Posted on 3/18/23 at 4:09 pm to SlidellCajun
Spoke with a friend Friday that is an agent in Baton Rouge and he was getting slammed with calls for quotes. Something about one of the underwriters or insurers was pulling out of the state.
Didn't talk long or get details....he was getting calls and said "let me answer this"
Didn't talk long or get details....he was getting calls and said "let me answer this"
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