Louisianans know all too well the cost of rebuilding after a hurricane, especially when insurance providers make it even more difficult. Eric Holl, executive director of the consumer advocacy group Real Reform Louisiana, says one of the biggest issues has been storm deductibles, a higher deductible that kicks in after a storm. It’s something my consumers don’t even know they have.
“They’ll find out they have to pay twenty, thirty, forty-thousand dollars; five to 10 percent of the value of their home before they can get anything from their insurance company, which for a lot of folks renders their insurance useless,” he said.
Holl says that legislation like House Bill 317, which was recently signed into law, adds a greater level of transparency that should better protect policyholders from those surprise costs.
“It’s going to require insurance companies to tell folks if there’s a change to their deductible, in writing, and ask the policyholder to sign a form acknowledging what their deductible is,” said Holl.
Though Holl says some of the protections presented in the bill were defeated due to opposition from the insurance industry, he believes this legislation is a major step forward for policyholders and provides added protection for those facing the aftermath of a storm.
“What we’re trying to do is make sure folks come into that process with their eyes open and they’re ready for what it’s going to take to get back in their home, how much they’re going to have to pay, and how much they’re going to have to fight,” Holl added. “And this bill is one step in that process.”
Holl also thanked New Orleans Representative Matthew Willard for authoring and working so hard to get the bill passed.
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