Lighthouse Property Insurance Corporation, a property insurance company that is headquartered in Tampa, Florida but domiciled in Louisiana was placed into receivership by the Louisiana Insurance Commissioner, Jim Donelon last week. This is the fourth Louisiana insurance company to be placed into receivership following the 2020 and 2021 hurricane season, and the third receivership of a homeowners writer licensed in Florida in 2022. The move will begin the process of triggering the guaranty associations in the states where Lighthouse was licensed to do business. Those states are Louisiana, Florida, North Carolina, South Carolina and Texas.

As of December 31, 2021, Lighthouse had 30,000 policyholders and 16,000 Ida-related claims in Louisiana. This represented 3.27% of the Louisiana homeowners market. Insureds in Louisiana will be covered by LIGA up to $500,000 per claim once the company is liquidated. Unlike other recent insolvencies, so far no other insurer has come forward to take over the Lighthouse policies. Policyholders will be contacted by the receiver or their agent about their claims and whether or not their policy will be taken over by another insurer.

In Florida, Lighthouse ceased writing any new business as of February 15, 2022 but honored new business through February 28, 2022. As of December 31, 2021 the company had 13,200 policies in Florida. Those policyholders will need to seek new policies in a market rocked by recent insolvencies, soaring premiums, litigation and lack of capacity from other private insurers, as many have ceased writing in the state or pulled back significantly. Many of these insureds will end up with Citizens Property Insurance Corporation, the insurer of last resort. The Florida property insurance is in full crisis mode, and the state legislature is currently polling its members to seek a special legislative session to address the state's property insurance crisis.