BATON ROUGE, La. (BRPROUD) — People in Louisiana are thankful to be spared from Hurricane Ian, but one expert tells me it’s possible the effects of the storm can still hit home.
“I think you can expect gulf states’ premiums to be affected negatively,” said Jeremy Robicheaux, Owner of Coastal Louisiana Insurance.
Agent Jeremy Robicheaux provides home-owners insurance to people in south Louisiana.
“Sometimes the companies who charge lower premiums don’t charge enough and they don’t have enough capital to pay their claims. If they don’t have enough money to pay their claims, they become insolvent,” Robicheaux said.
Nine insurance companies have pulled out of Louisiana since Hurricane Ida one year ago.
Robicheaux says the decision came after the businesses realized they could not afford the millions of dollars in claims. That move left homeowners scrambling to find insurance elsewhere, right in the midst of hurricane season.
The agent says he answers triple the number of phone calls now, compared to this time last year and the crisis continues.
“Certain insurers have stopped writing new policies or they put a moratorium as it’s called. It’s very common for companies to put a moratorium on throughout storm season,” said Robicheaux.
Robicheaux says you should have a plan in place now in case your insurer drops your policy. Especially if your insurance company is Florida-based.
“Will there be situations where clients were forced to find another carrier and may be forced to do so again, I would hope not, but unfortunately that’s the state of insurance crisis we are in Louisiana today,” he said.
Over the past two years, Florida’s private insurance industry has lost more than $1 billion.
Robicheaux recommends speaking with your agent now and doing research on what options are out there.