42,000 Louisiana homeowners dropped by insurance company Friday

42,000 homeowners are looking for a new insurance policy as of Friday. The company, Southern Fidelity dropped them and now they have 60 days to find a new policy.

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Nearly 100,000 policyholders total have been dropped by Southern Fidelity, Lighthouse Excalibur and Maison

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Insurance Commissioner Jim Donelon says six companies have pulled out completely and more than 50 have stopped writing new policies below I-10 and I-12, making the state’s insurer of last resort, Louisiana Citizens, the only option for most. Southern Fidelity customers have until September 13 to find a new policy or sign with Citizens.

Lighthouse and Maison have until August 28.

If you sign with Citizens, the coverage will be retroactive back to the day your policy was canceled, so there’s no gap.

Donelon says the number of Citizens’ policies has jumped from 35,000 to 82,000 and he expects it to grow to 95,000.

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Many homeowners with canceled policies say the Citizens’ quotes they’re getting are simply unaffordable, like one Lafitte resident who was quoted $41,000.

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Areas like Lafitte, where they’re seeing $24,000 quotes, fear they will be priced out of their homes.

“I would tell them to do what our friends and neighbors over on the Gulf coast in Mississippi have been doing for the past 15 years, and that is to build higher and to build stronger,” Donelon said.

Others that weren’t canceled say their policy renewals are tripling. An Irish Channel resident reports looking at $15,000.

Donelon says many companies are realizing they’ve been underinsured. Collect your premiums right up until hurricane season POS