Louisiana homeowners insurance crisis: What you need to know

Why have insurance companies left Louisiana?

According to John Ford, deputy commissioner for the Louisiana Department of Insurance, “The factors that affect the insurance market in Louisiana can be broken down into three broad categories.” He names those as:

Louisiana experiences a high level of catastrophes (hurricanes) and bad weather relative to other parts of the country, and its population is concentrated in the coastal area.
Louisiana’s regulatory environment for insurance and business.
Louisiana’s legal environment for insurance and business.

The troubles in the Louisiana property insurance market bear many similarities to those affecting Florida. Unlike Florida, where high costs related to extensive litigation are cited as the most significant factor, Louisiana’s primary culprit is its vulnerability to hurricanes and flooding.

Since 2020, multiple major hurricanes have struck Louisiana, including Hurricanes Laura, Delta and Zeta in 2020 and Ida in 2021. The resulting insurance claims overwhelmed some insurers, particularly those that were relatively small in size. Other companies have simply decided that the state is too risky to continue doing business in and have pulled out.

Why have Louisiana homeowners lost insurance coverage?

The story is a familiar one in hurricane-prone areas: As the risk increases and the cost of repairing damage follows, insurance companies choose not to renew policies. And some go out of business.

Louisiana Citizens, the state-run insurer, has increasingly been called upon to fill the void, but not without consequences. Citizens is a last resort for residents who are unable to find coverage with traditional insurers. The insurer must also maintain rates at least 10% above the market average, making it more expensive than other insurers.

The state’s insurance department approved a 63% increase to Citizens’ insurance premiums, beginning Jan. 1, 2023. The rate increase affected policyholders on renewal.

Fortunately, the arrival of 10 new insurers in the Louisiana market should help homeowners find affordable coverage and ease the burden on the Citizens program. This influx of new insurers offers homeowners a wider range of options, potentially leading to more competitive rates and better coverage.

Which insurance companies have pulled out of Louisiana?

The tally of insurance providers that have declared insolvency since 2020 includes:

Access Home Insurance
Americas Insurance
FedNat Insurance
Gulfstream Property and Casualty
Lighthouse Excalibur
Southern Fidelity
State National Fire Insurance,
Weston Property & Casualty

Those that have announced they will no longer write policies in the state include:

Aegis Security Insurance
AIG Property Casualty
American Reliable Insurance
American Summit Insurance
Bankers Specialty Insurance
Lexington Insurance
Maison Insurance
Republic Fire and Casualty
Unitrin Direct Property & Casualty
Union National Fire
United Fire & Indemnity.

What companies are writing homeowners insurance in Louisiana?

There are still many home insurance companies in Louisiana to choose from. Among the companies still offering Louisiana home insurance are:

Availability may vary by location. Find affordable Louisiana homeowners insurance by shopping around. Compare quotes from multiple companies to find the best coverage for you.

Why is homeowners insurance so expensive in Louisiana?

The high cost of claims resulting from severe weather, particularly hurricanes, has contributed to the increase in Louisiana home insurance rates and inflation. As the cost of construction materials has increased, home insurance premiums have also risen to cover the associated repairs and maintenance.

However, there is some good news for homeowners. The number of rate increase requests in 2024 dropped to 50, compared to 80 in 2023, indicating that fewer insurers are seeking to raise insurance rates. Additionally, the rate increases themselves were lower in 2024 at 6.6% compared to 14 % in 2023. This decrease in requests should provide some relief to homeowners, signaling a potential stabilization in insurance costs.

What is the Louisiana government doing to address home insurance prices?

In February 2023, the Louisiana state legislature approved a $45 million incentive program designed to encourage insurance companies to issue new homeowners policies and attract new companies to the market. This initiative is expected to alleviate the policy load on Citizens and reduce costs for homeowners.

The state is also helping homeowners improve their property to lower insurance rates by financially strengthening the Fortify Homes Program, which gives up to $10,000 to repair and upgrade roofs. Hurricanes cause a significant amount of roof damage, which may prompt insurers to increase rates or decline to renew policies. This program helps homeowners remove damaged roofs from the insurance equation.

“The Louisiana Fortify Homes Program was launched in late 2023,” says Ford. “After taking office, Commissioner Temple made several changes to the program (converting it to a lottery system from a first-come system; limiting the eligibility area to the coastal zone so we could concentrate in most vulnerable area; getting rid of sunset and securing long-term funding from the industry to stabilize the program) to improve it, and has worked to encourage other residential, commercial and community mitigation efforts that are necessary for building a more resilient Louisiana.”

There have also been legislative changes.

“Since taking office in 2024, [Temple] has made several regulatory reforms to make the state more competitive for insurers,” Ford says. These include:

Reforming the three-year rule, which made Louisiana the only state where insurers couldn’t make changes to ensure they were effectively managing their risk.
Moving from prior approval of rates to file-and-use to increase speed to market for new products.
Providing more helpful responses to industry and consumers about how state officials interpret the law and regulations.
Allowing insurers to self-report and address minor market conduct violations that did not negatively impact consumers.
Investing in anti-fraud efforts to reduce insurance fraud and its associated costs.
Working to address legal reform by creating a fair claims process where insurers and policyholders operating in good faith can process claims and get paid as quickly as possible.

These changes are helping homeowners find affordable Louisiana insurance, but further improvements are still needed.

“I will push for more reform this year and continue fighting to stabilize property insurance rates for Louisiana families and businesses,” Temple said in the press release. “We are demonstrating that reform works on the property side. If we focus on auto insurance reform this session, I expect we’ll see similar results on the auto side as well.”

What should you do if your home insurance policy is canceled?

Your insurance company is required to provide you with notice of cancellation, allowing you sufficient time to obtain new coverage. Here’s what you should do if your homeowners insurance gets canceled to avoid a lapse in coverage.

Begin by calling your insurance provider. Speak with a representative and find out if there's anything you can do to reverse the cancellation. If the provider has gone out of business, it may not be possible.
Get some quotes. Even if you can resolve the issue with your current insurer, this may be a good opportunity to explore other options.
Complete repairs or make the required upgrades. It's possible that your insurer is considering dropping your policy because your property has an aging roof, old wiring, or other factors that make it too high a risk. Taking care of this work will be helpful regardless of how you proceed.
Don’t leave it until the last minute. Getting coverage in place might take time, and insurance companies are busy, so don’t wait.

Sources:

Louisiana Department of Insurance. “Commissioner Temple Highlights Positive Trends in Louisiana Property Insurance Market.” Accessed July 2025.

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