The Louisiana Department of Insurance recently granted Farm Bureau a special emergency status that allowed it to drop wind and hail coverage on 7,500 existing customers.
State Farm has not dropped coverage but is not writing new policies.
Allstate, following Farm Bureau, is trying to drop its wind and hail coverage on its 30,000 customers in 18 parishes and has threatened to leave the state should that request be denied.
For those people dropped by Farm Bureau, those that could potentially be dropped from Allstate and all new homeowners trying to insure homes along the coastal parishes, the only option in many cases is La. Citizens.
The problem for residents is the cost. By law, the company must keep its rates 10 percent higher than the highest rate offered by any of the top 10 insurance companies in the state.
Blanco and State Farm spokesman Morris Anderson said the state and the industry must figure out how to keep homeowners insurance affordable and readily available, while protecting insurers from excessive risk if the state is hit by more storms.
Statewide, homeowners policies have gone up an average of 12 percent since the storms, including decreases in some northern parishes and spikes of over 50 percent in coastal parishes, Insurance Commissioner James Donelon said.
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