Increased competition in Louisiana homeowners insurance market
Officials in Louisiana announced this month that the number of residents relying on the Louisiana Citizens Property Insurance Corporation for homeowners insurance has fallen for the fifth straight year, as private companies took over more of the market.
Citizens, which is run by the state, was meant to be an insurer of last resort, and tends to have premiums higher than those charged by private companies. The Louisiana Department of Insurance said that Citizens' enrollment has dropped to just 105,000 policies, or 4.3 percent of the Louisiana homeowners insurance market. It's also a reduction of more than 10,000 from last year.
Officials said more private companies have moved further into the state after fleeing following Hurricanes Katrina and Rita in 2005. That increased competition should lead to lower rates for consumers, who no longer need to rely on the state for coverage.
"Shop around. There are other options out there," Louisiana Insurance Commissioner Jim Donelon told WWL-TV.
The state says Citizens' enrollment peaked in 2008, when it reached 174,000 policies.
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