The Louisiana Department of Insurance published a bulletin giving notice of its intent to promulgate a regulation requiring insurers to offer premium discounts for FORTIFIED homes.
The regulation applies to all admitted insurers authorized to write insurance in the state. Insurers must offer mandatory insurance discounts to homes that meet or exceed the FORTIFIED requirements set by IBHS. The property must have received an official FORTIFIED designation.
The discount should be between twenty to thirty percent for all eligible properties. If an insurer wants to offer a discount lower than twenty percent, they must file a request with the Commissioner that includes actuarial justification. A discount greater than thirty percent may also be offered if the rate is actuarially justified.
The regulation will be effective when published in the Louisiana Register.
The bulletin can be found here.
Ray Sugrim
Ray Sugrim is an Insurance Editor with FC&S Expert Coverage Interpretation, a division of National Underwriter Company and Arc Network. Ray is responsible for helping develop and edit content for subscribers. Ray is a St John’s University graduate with a degree in Risk Management & Insurance and is a CPCU candidate.