Bill on governor’s desk to lift veil from homeowner insurance rates
Rep. Chris Leopold, R-Belle Chasse
Conventional wisdom holds that some Louisiana homeowners in some parts of the state pay higher home insurance premiums, because they face a higher risk of damage due to local events: floods, wind, high rain, storms and the like. One representative though, refutes that and has convinced colleagues in both the House and Senate to allow the public to see actual numbers, a La. House of Representatives news release stated.
Data from nearby states reveals homeowner insurance claims in so-called high risk areas (flood and storm zones, for example) are often less than claims made by others. So, Rep. Chris Leopold (R-Belle Chasse) wants Louisiana insurance companies to file their losses and premiums by zip code and parish, as well as the number of policies they have in each area.
Leopold said the bill (HB 909) will simply remove the veil from losses and premiums.
“The idea is to provide important information to consumers to help them understand their property insurance premiums and to help determine if a proposed premium is in line,” Leopold said, “My bill will require the commissioner of insurance to collect all the data on losses and premiums and post it annually on the Department of Insurance website.”
After unanimous passage in the House, the Senate joined in, and now the bill is on the Governor’s desk. Called the Insurance Clarity act, the bill also requires the insurance commissioner to publish how insurance companies calculate their premiums.