Hurricane Ian likely to affect Louisiana homeowner’s insurance rates

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BATON ROUGE – The state insurance commissioner says you may count on your householders insurance charge to improve, however by how a lot will depend on the price of Hurricane Ian damages in Florida.

“if it turns out to be as estimated right now between $25 and 40 billion in insured losses, that would be a huge hit to the international reinsurance market place,” Jim Donelon mentioned.

Insurance agent Stephen Lovecchio says inflation of constructing supplies is already inflicting a rise. He agrees subsequent 12 months’s premiums can be larger than this 12 months’s.

“There’s only a finite amount of money for hurricane risk in the golf coast region of north America, and I think Ian just took it all,” he mentioned.

There are solely a handful of massive, reinsurance corporations worldwide. They cowl pure disasters throughout the planet they usually solely have so cash reserved.

The corporations we take care of right here in Louisiana, all purchase their insurance from these international corporations and the price of reinsurance goes up.

“They’ll play the claim but they need to get their money back quick because they’re waiting for the next one.”

Lovecchio says Louisiana wants to incentivise non-public insurance corporations to promote right here. In the free market, competitors drives down costs.

Also, all of the lawsuits in Louisiana and Florida value insurance corporations cash and tie up claims for years,

“We now have the highest property rates in the nation and we’re not a rich state. A large percentage of peoples incomes go to pay for insurance to live in southeast Louisiana.”



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