Louisiana Insurance Commissioner Jim Donelon announced today that State Farm, the state's largest home insurer, would resume limited writing of new home insurance policies for current residents in coastal parishes.
State Farm beginning tomorrow will also write additional homeowners business in inland parishes, the announcement said. This will help, for example, current State Farm customers in coastal parishes who move or build new homes there, Mr. Donelon noted.
Commissioner Donelon said State Farm officials had cited positive changes in Louisiana as part of the company's decision to write more homeowners business in the state.
He said executives with the insurer had mentioned the statewide building code and enforcement of the code, which is important to all carriers since structural integrity in new construction is fundamentally important to a company considering writing a new risk.
"Several new companies are currently in the process of applying to write homeowners insurance in our state. That fact, coupled with State Farm's decision to open up their writings, is a positive sign that our state's property insurance market is rebounding following the hurricanes of 2005," said Mr. Donelon.
State Farm in Louisiana has approximately 32 percent of the home insurance market.
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