New Orleans Realtors are asking Insurance Commissioner Jim Donelon to put the brakes on a 64 percent rate hike for 100 thousand Louisiana homeowners that have insurance with Citizens Insurance.
Realtor Cody Caudill is part of a coalition of New Orleans realtors trying to stabilize the housing market.
“Right now we’re seeing insurance quotes already double and triple in some cases. The notion of increasing 63 percent more is just going to hit affordability in the market,” Caudill said.
Louisiana Citizens is the state’s insurer of last resort. Citizens is asking for the increase to be effective January 1st.
“There’s really not a reason why we have to move it now. This is the reason why government exists. Citizens is a nonprofit,” Caudill added.
The problem doesn’t just affect New Orleans. More insurance companies are pulling out of the state, becoming insolvent, or refusing to write policies south of I-12.
But Caudill sees signs of improvement in the insurance market. He says they have indications a couple of private insurers will return to the market if we can make it through this hurricane season without a major storm.
“And then we hope with one more storm season we have even more private insurers come back,” he adds.
Donelon says he will decide based on what the numbers show about the need for an increase.
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