Insurance company cancels 42k policies

The amount of homeowners in Louisiana affected by canceled policies continues to grow.

Companies can no longer afford to stay in business because of the constant storms.

As of July 15th, Southern Fidelity canceled 42,000 policies, leaving homeowners with 60 days to find new insurance.

That brings the number of canceled policies since June to nearly 100,000 by Southern Fidelity, Lighthouse Excalibur, and Maison, according to the Associated Press.

Louisiana Insurance Commissioner Jim Donelon said six companies have pulled out of the state completely and more than 50 have stopped writing new policies below Interstate 10 and I-12.

The situation creates Louisiana Citizens Insurance as the only option for most homeowners.

Southern Fidelity customers have until Sept. 13 to find a new policy or sign with Citizens.

Lighthouse Excalibur and Maison customers have until Aug. 28.

Donelon said the number of Louisiana Citizens’ policies has jumped from 35,000 to 82,000 since the cancelations and he expects it to grow to 95,000.

Donelon said to help in the long term, homes will need to be built stronger and higher. The legislature passed a bill to offer incentives to insurance companies to cover homes in the state.

A separate was passed to make companies have $10 million on hand, called a surplus before they can be licensed.

Donelon said the hope is that the further away the state is removed from the natural disasters, the more likely it is that insurance companies return to the Louisiana market.

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