Tuesday, 29 May 2007
Louisiana Governor’s $100 Million Plan To Reduce Homeowners Insurance Premiums
Louisiana Governor Kathleen Blanco has been hard at work trying to solve her state’s insurance rate problems. The Gulf state’s homeowners insurance premiums are at all-time highs with the hurricane season just around the corner.
Her newest proposal hopes to make the insurance market more attractive for companies, bringing more insurers back into the state — ultimately utilizing competition as a means for reducing premiums.
The plan would budget $100 million state dollars to be used as re-insurance for insurance companies who apply. Companies accepted would be granted $2 to $10 million as an extra backstop in the event of a hurricane. Any insurer that has more than $25 million in assets may apply.
“Bringing more companies into the Louisiana market is our goal,” said Governor Blanco.
Accepted insurers would have to match the state’s amount and 25% of their new policyholders must be high-risk homeowners — those who are currently insured by the state-run insurer-of-last-resort, Louisiana Citizens Property Insurance.
They are also required to insure the high-risk members for at least 5 years, as reported by Associated Press.
Technorati Tags: Homeowners Insurance Louisiana Homeowners Insurance
