ABBEVILLE, KATC — Rising insurance premiums and shrinking coverage options continue to plague Louisiana, leaving homeowners and business owners struggling to protect their properties. At a special luncheon Wednesday in Vermilion Parish, Louisiana Insurance Commissioner Tim Temple sat down with local business leaders to discuss the ongoing crisis and explore potential solutions.
With insurance companies pulling out of the state following catastrophic storms like Hurricanes Laura and Delta, and many more rising premiums, Temple and local stakeholders are looking to restore balance in the market. The Louisiana insurance landscape has grown more difficult for both property and business owners, with many facing sharp increases in rates and fewer options to shop around.
"I never thought that insurance on property would increase at this amount," said Tammy Domingue, a Vermilion Parish property owner. "Over the last two years, our insurance has increased by 60%."
Temple, who attended the luncheon, acknowledged the widespread frustration. He described the situation as a crisis, citing that 13 insurance companies became insolvent after major storms hit Louisiana, leaving policyholders with fewer options. "After Laura, Delta, Zeta, and Iota, we had 13 companies go insolvent. That means they didn’t have the financial resources to pay claims," Temple said.
In response, Temple has championed a series of legislative changes aimed at addressing the crisis. Signed into law by Governor Jeff Landry in May, the new legislation includes four bills designed to create a “free market” insurance industry, providing insurers with more flexibility to raise rates and drop policyholders. Temple believes these changes will encourage insurers to return to Louisiana, especially in hurricane-prone areas like Vermilion Parish.
"Our market has compressed. There are fewer companies willing to write property insurance in Louisiana, and that’s a lot of what our legislation is designed to do – to help promote Louisiana and change the marketplace so that companies feel like they are going to be treated fairly,” Temple explained.
Despite the legislative efforts, the situation remains dire for many property owners. Domingue, who has been in business for over a decade, said finding affordable coverage is becoming increasingly challenging. "You’re stuck in a jam, there’s no option. You can’t shop the price … you have to carry insurance, so, it’s been a financial burden," she said.
Domingue also shared that the rising premiums are forcing her to reconsider her rental properties. "I’m either going to sell my rental properties or not carry that much coverage or carry no coverage at all if I don’t have a mortgage on the property. That puts me in a vulnerable position," she said. "If there’s a hurricane and I have no insurance, how do I repair it to be able to put a tenant in that home?"
While the road ahead remains uncertain, both Temple and business owners like Domingue are hopeful that reforms will eventually stabilize the market. “I think that the insurance commissioner is working to solve the issues. I don’t think that it will be solved overnight,” Domingue said.
As the state continues to grapple with these challenges, Temple remains optimistic that the new legislation will help alleviate some of the pressures on both homeowners and insurers.
Both Temple and local business owners remain hopeful that with continued dialogue and reform, Louisiana's insurance market will become more accessible and stable. The state’s insurance crisis, though ongoing, may soon see a shift towards a more balanced future.
For now, both homeowners and business owners in Louisiana will continue to navigate an uncertain insurance landscape.
