Residents with property insurance are getting a small break. Insurance Commissioner Tim Temple says the 1.36% assessment on all residential and commercial property insurance policies will disappear in April. The assessment has been paying off bonds Louisiana Citizens Insurance incurred from claims after hurricanes Katrina and Rita. Temple says the Citizens Board determined they have enough money to pay off the loans.
“You can’t pay the bonds off early, but what it will do, is pay for the assessment that we would have been paying this year through June 2026,” Temple said.
Temple says this will result in a $100 savings for residential property insurance policies and $200 for commercial policyholders.
“It’s not a whole lot of money but $100 is a $100 and I would rather see my fellow citizens keep more money in their pocket, than pay it on insurance,” Temple said.
Citizens’ Policyholders are also getting a break. A new law that went into effect January first waves the 10-percent surcharge on all new policies and renewals for the next three years, which means lower premiums for Citizen policyholders.
“They should see a slight decrease, it’s around a negative five-percent decrease,” Temple said.
There are 115,000 Citizens policyholders, down from 140,000 after the hurricanes of 2020 and 2021.
Comments