Commissioner of Insurance State of Louisiana Jim Donelon
Insurers have paid or reserved $7.7 billion on claims in Louisiana through the end of 2020 from hurricanes Laura, Delta, and Zeta. Insurance Commissioner Jim Donelon said claims from Katrina in Louisiana alone were $24.3 billion the costliest for the state, followed by Rita at $3.3 billion, but now Rita has been eclipsed in insurance costs.
“But Laura now represents the second-largest hurricane loss event in our state’s history with some $6.6 billion been having been paid and reserved for Laura losses,” said Donelon.
Donelon said of the three major storms that hit the state in 2020 policyholders filed 291,000 claims and insurers consider 80-percent of those claims closed. Of those claims about half were not paid, Donelon said it’s because many policies require a two to five percent named storm deductible of the insured value of your property.
“And that typically can add up to eight, to nine, to ten-thousand dollars out of pocket as a deductible before the damage to your roof begins to be paid for by your insurance company,” said Donelon.
Donelon said $6.6 billion has been paid so far of the $7.7 billion of claims from Hurricanes Laura, Delta and Zeta combined.
“While $6.6 billion has been so far, all of the companies still have reserves on their books for reported claims that they have valued at a certain level that may be still in the adjustment process,”
Donelon said in addition to those clams in reserve being in the adjustment process, others are in litigation.
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