Over 40,000 Louisiana Homeowners Dropped By Insurance Company
There are over 40,000 homeowners in Louisiana left scrambling for new homeowners insurance this week.
Southern Fidelity has now canceled policies on 42,000 Louisiana homeowners, according to the Louisiana Department of Insurance. Triggering what is being called an insurance crisis in the state.
When Southern Fidelity canceled the policies on these Louisiana homeowners, they were given 60 days to find a new policy. But that comes in the wake of two other insurance companies making similar moves to drop homeowners. Which means there have now been more than 100,000 homeowners in Louisiana who have lost their homeowners insurance since June.
Insurance Commissioner Jim Donelon says that 6 insurance companies have now discontinued services in the state, while over 50 insurance companies will no longer offer services south of the I-10 corridor.
In addition to the lack of options, reports suggest that the remaining insurance companies are moving rates up into unaffordable territory. With some homeowners reporting that their rates are now tripling during renewal. My Journal Courier is reporting that one New Orleans resident was given a $15,000 renewal cost.
Donelon appears to not have much in the way of addressing the scenario either. Turning the issue back onto the homeowner, and adding more financial burden to them. Suggesting that its up to the homeowners to simply appeal to their insurance company, and pay to have a contractor provide an estimate on the costs to rebuild your home. He did not indicate that the plan would work when he suggested the plan.