Insurance Commissioner Jim Donelon warns this year’s incredibly active hurricane season will result in home insurance price increases of up to ten percent. Donelon says after the last devastating season in 2005, statewide home insurance premiums went up 12 percent in 2006.
“It actually was a 48 percent increase in south Louisiana, four times the statewide amount,” said Donelon.
Five named storms have made landfall in Louisiana in 2020. Hurricane Zeta was the latest and insurance industry analysts say the storm produced about two-billion dollars in damages in Louisiana.
Hurricane Laura was the most destructive storm, causing an estimated damage between eight and 12-billion dollars.
“This year has been the worst in Louisiana from a hurricane perspective since all of the disasters in 2005, 15 years ago,” said Donelon.
Donelon said 15 years ago when rates went up after 2005 they rose for three to four years before settling. So, should we expect that to happen again? Donelon said much of that depends on what happens next hurricane season.
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