What is the problem with home insurance in Louisiana?
We all have heard of hurricane Katrina and Rita, soaring through the United States leaving a wave of destruction. But Louisiana is, in general, prone to a number of natural disasters, including hurricanes, floods, and tornadoes.
The state is located on the Gulf Coast, which makes it vulnerable to hurricanes and tropical storms. The state is also low-lying, with much of the land lying below sea level, which increases the risk of flooding.
Compared to other states, Louisiana has a high rate of destruction terrorizing homes and increases the need for homeowners’ insurances.
Are people not insured in Louisiana?
The biggest issue, according to politicians in the area, is the fact that a lot of people have Citizens insurance with a private insurer.
This creates a problem for people who are not able to afford the premiums that have been rising, due to the higher number of natural disasters hitting the state.
The issue in this state is not that people are not insured, but that it has become very unaffordable, which in the long run could lead to a lot of people not being insured and losing a lot more than their premiums when disaster strikes again.

What is being done to lower the price of homeowners’ insurances?
Insurance commissioner Donelon, who is in charge of all political and lawful arrangements surrounding insurances in the state of Louisiana, is suggesting that a 45 million dollar incentive fund, will hopefully attract more different insurance companies.
By attracting more companies to the market, the competition for existing insurers to offer lower premiums and gain customers becomes higher.
This means that premiums overall should lower and people will have more choice to find the homeowners’ insurance that fits their situation and needs.
This is not the first incentive program that has hit Louisiana. After hurricane Katri, there was also a fund set up to create the same situation.
This fund did work and helped a lot of people find peace of mind surrounding their homeowners’ insurances.
How do you know if your homeowners’ insurance is bad?
Whether you have found the perfect homeowners’ insurance for a steal 15 years ago, or you were forced onto a terribly high premium last year, it is important to re-evaluate your insurances every year.
By creating this evaluation, you can see whether the homeowners’ insurance you had, still fits your current personal and financial situation.
If you move houses, renovate your existing one or even build an extra shed, it could all affect your premium and the choice of your insurer.
Browsing around, asking for quotes for your current situation and critically look at your existing one will save you a lot of money in the long run and a lot of headache when actual problems arise.