Louisiana has awarded more than 1,800 grants to help homeowners upgrade to fortified roofs. (Credit: Anthony/Adobe Stock)
New regulations proposed by the Louisiana Department of Insurance would give homeowners discounts and rate reductions for completing mitigation projects.
Under the proposal, all property and casualty carriers operating in the state would be required to provide a discount or rate reduction of 20% to 30%, subject to regulator approval. Mitigation projects would have to meet fortified standards set by the Insurance Institute for Business and Home Safety.
The department’s notice acknowledges that the discounts could decrease revenue for carriers who haven’t offered mitigation discounts before. However, carriers would be able to offer discounts outside the 20% to 30% range as long as they provide actuarial justification and receive approval from state regulators.
Public comments on the proposal are open until Nov. 10.
Louisiana’s insurance market has started to stabilize since reforms were passed by the legislature in 2024, according to Tim Temple, the state’s insurance commissioner. He reported that, as of March, 10 new homeowners insurers had entered the state. Home insurance rate increases averaged just 6.6% in 2024, compared to 14% in 2023 and 16.2% in 2022.
Since 2023, Louisiana has offered grants of up to $10,000 to homeowners who upgrade to a fortified roof. The program was set to end this year, but lawmakers made it permanent last year and funded it with an additional $15 million. So far, the program has awarded more than 1,800 grants.
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