Homeowners in Louisiana will see a small discount on the fees they pay on top of their property insurance premiums this year.
The Louisiana Citizens Property Insurance Corp. Board of Directors voted Thursday to bring an early end to a 1.36% assessment added to all residential and commercial property insurance policies in the state. Louisiana Citizens is the state-run insurer of last resort for homeowners in environmentally risky areas who cannot find coverage on the private market.
The assessment, which goes toward paying off bonds for debt that Louisiana Citizens incurred from paying claims from hurricanes Katrina and Rita, was originally set to expire in June 2026 but will now end this April.
Additionally, those insured through Louisiana Citizens will no longer have to pay a 10% surcharge when they begin a new policy or renew their existing policy this year. The waiver, part of newly enacted legislation, took effect on Jan. 1 and will last for the next three years.
Both changes are part of Insurance Commissioner Tim Temple’s efforts to tame skyrocketing insurance rates in Louisiana.
“When Commissioner Temple took office and became chair of the Citizens Board of Directors, he encouraged our staff to find innovative ways for Louisiana Citizens to operate more efficiently and find savings for policyholders,” Louisiana Citizens CEO Richard Newberry said in a press release. “Our team identified this opportunity and brought it to the board for approval at today’s meeting.”
Although most policyholders will see relatively small savings from the changes, Temple said every little bit helps.