BATON ROUGE, LA – Louisiana property insurance policyholders will soon see some relief as the Louisiana Citizens Property Insurance Corporation (Louisiana Citizens) Board of Directors voted to end its 1.36% assessment on all residential and commercial property insurance policies ahead of schedule. The assessment, which originally aimed to pay off bonds for claims resulting from hurricanes Katrina and Rita, will now conclude in April 2025—more than a year earlier than its previously scheduled end date of June 2026.
“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,” said Louisiana Citizens CEO Richard Newberry. “Our team identified this opportunity and brought it to the board for approval at today’s meeting.”
The early termination of the assessment is part of a broader effort by Louisiana Citizens to streamline operations and provide financial relief for policyholders.
Additional Savings for Louisiana Citizens Policyholders
Starting January 1, 2025, Louisiana Citizens policyholders began benefiting from a temporary waiver of the 10% surcharge applied to their policies. This measure, enacted as part of a property insurance reform package championed by Commissioner Tim Temple and authored by Senate Insurance Committee Chairman Kirk Talbot, will remain in effect for three years.
“I appreciate Richard and his team’s dedication to running a sound insurer of last resort for the people of Louisiana,” said Commissioner Temple. “While the savings policyholders will see as a result of this change are not that significant when compared to the high premiums we all pay for property insurance, every little bit helps as we work to create a more available and affordable market in Louisiana.”
A Step Toward Market Stability
These changes come as part of a larger initiative by the Louisiana Department of Insurance to stabilize the property insurance market in the state. As the insurer of last resort, Louisiana Citizens plays a critical role in ensuring coverage availability for residents and businesses, particularly in areas most affected by natural disasters.
About Louisiana Citizens and the Department of Insurance
Louisiana Citizens Property Insurance Corporation was established to provide insurance coverage to residents and businesses unable to secure policies in the private market. The Louisiana Department of Insurance works to foster competition within the insurance market while providing consumers with the resources and protections they need.
For more information about Louisiana Citizens or to contact the Louisiana Department of Insurance, visit www.ldi.la.gov or call 1-800-259-5300.