In the wake of Hurricane Katrina, Louisiana lawmakers instituted what became known as the “three-year rule” in which insurers were barred from dropping a policy or raising its deductible after it had been renewed for three years. This law, unique to Louisiana, has recently been repealed.
Formerly House Bill 611, Louisiana Act No. 9 gradually relaxes the three-year-rule by repealing it for policies written after August 1, 2024, and allowing carriers to cancel or non-renew up to 5% of their legacy policies that are subject to the three-year rule. Most other provisions of the bill are scheduled to go into effect on January 1, 2025.
What the Repeal Means for Consumers
The new law means insurance companies will be able to cancel up to 5% of their policies annually as long as they aren’t in a single parish, but they could drop even more if they receive approval from the state. Additionally, insurers may also increase deductibles for homeowners’ policies issued after August 1, 2024.
These changes, which lawmakers claim will bring more competition back to the state, mean homeowners need to pay even closer attention to their policy coverage and be prepared to shop around for new insurance. Their rates may increase or their coverage could be dropped altogether.
As you assess your options for homeowners insurance in Louisiana, it’s important to understand the changing state laws and how they may impact your coverage. For help, turn to our team of legal experts at Kandell, Kandell & Petrie. Our New Orleans claims advisors can assist with your questions and, if you do need to file an insurance claim, ensure you get the full relief you deserve for your property damage in Louisiana.
