By Louisana Department of Insurance
On the ninth anniversary of Hurricane Katrina Insurance Commissioner, Jim Donelon, provided an update on the status of the homeowners market in Louisiana while also reminding residents, as we enter the peak of hurricane season, to remain prepared and informed.
“Following Hurricanes Katrina and Rita we developed a combination of strategies including the Louisiana Citizens Depopulation Program to improve Louisiana’s property insurance market,” said Commissioner Donelon. “Our market is actually more competitive and more diverse than it was prior to 2005 and we now have 21 new insurance groups writing in Louisiana who were not here pre-Katrina. While larger companies have downsized their exposure along the coast, we’ve been successful in filling that vacuum with smaller, regional and financially stable companies that I believe represent the future of coastal property insurance markets.”
Commissioner Donelon says the state’s implementation of a statewide building code in response to Hurricanes Katrina and Rita has also been instrumental in improving the property insurance market in Louisiana. During the 2005 First Extraordinary Legislative session, the Legislature enacted the first mandatory statewide building code, the Louisiana State Uniform Construction Code.
“Our statewide building code has been helpful on several fronts – enhancing the safety of Louisiana residents, improving the resiliency of Louisiana communities, and boosting confidence among insurers interested in offering coverage in Louisiana. We continue to push to raise awareness of the incentives to those who comply with the Louisiana State Uniform Construction Code including insurance premium discounts and tax deductions for retrofitting existing residential structures,” added Donelon.
Commissioner Donelon advises Louisiana residents that now is a good time to take precautionary measures before a hurricane threatens. “Know your coverage and check with your agent to find out if there is a wind and hail, named storm or hurricane deductible written into your policy. Also be aware that companies stop writing property policies when storms approach the Gulf of Mexico.”
Other steps to prepare for hurricane season include:
- Get flood insurance. If you don’t already have one, consider purchasing a flood insurance policy through the federal National Flood Insurance Program. Most homeowners insurance does not cover floods and there may be a 30-day wait before a flood policy becomes effective. If you already have a flood policy, remember that your policy needs to be renewed each year. For more information on flood insurance, go to www.floodsmart.gov
- Conduct a thorough home inventory. A thorough documentation of your belongings will help in the event you must file an insurance claim. At a minimum store photos or videos of your home’s interior on your cell phone camera and store digital pictures in your email for easy retrieval.
- Don’t forget about your health insurance. Make sure you have an adequate supply of maintenance drugs, for example, your blood pressure medication, in the event of an evacuation. Ask your doctor if he or she will give you a written prescription for any important medications you may need to fill away from home such as insulin or heart medications.
For more information on storm preparedness, please visit www.ldi.la.gov/hurricanes.
