Insurance commission has abandoned those it is supposed to protect

Ernest Deroche Sr.
December 16, 2008
Whitney Nicole "Black" Jones
December 18, 2008
Ernest Deroche Sr.
December 16, 2008
Whitney Nicole "Black" Jones
December 18, 2008

Dear Editor:

Hurricane deductibles are a major concern for the poor on fixed incomes and the wealthy.


The American dream of owning a home is quickly disappearing. The burden of yearly increasing insurance premiums for less coverage, state-mandated charges for those who cannot afford to purchase insurance coverage and – adding insult to injury – an obscene penalty for home ownership, better known as a hurricane deductible, is quickly eroding the dream.


After the devastation caused by hurricanes Katrina and Rita, as a means to decrease insurance companies’ losses, the state Insurance Commissioner came up with a brilliant solution: Pass the losses on to those who are least financially able to recover.

The commission, under the questionable leadership of its secretary, is directly responsible for the misery and financial woes of those who purchased insurance to cover their losses. After the landfall of Hurricane Gustav, home and business owners have experienced a rude awakening.


For example: If your home has a market value of $100,000, with a hurricane deductible of 5 percent of the home’s value, the first $5,000 in hurricane damage must come out of the homeowner’s pocket. As a result, many homes will not be repaired and will become blighted.


The state Insurance Commission, like the Louisiana Public Service Commission, is a “captive state agency.” Because of its coy relationship with ever-present lobbyists who have bought and paid for their attention with campaign contributions, free golf junkets, free private plane rides, expensive meals and other niceties, the insurance commission, its secretary and executive staff identify more closely with those whom it is legally bound to regulate rather than the people it is legally bound to protect.

Three insurance adjusters, one from Allstate and two from State Farm, told me of their visits with homeowners who had losses caused by Hurricane Gustav. The elderly and those on fixed incomes, with uncontrollable grief, cried like babies upon learning what the term “hurricane deductible” in their homeowner’s policy meant and how it was going to affect their ability to recover from the losses.

Each of the three adjusters said that they knew at least one adjusters who left the state before completing the assignment because he could not bear to see the grief and despair in the eyes of homeowners.

What can you do? Let your voice be heard. Contact your local, parish or state elected officials, including Gov. Bobby Jindal. Contact the chamber. Contact the news media.

Tell them we need their help now.

Remember what happened when the state legislature voted themselves a pay raise and the people of Louisiana stood up, drew a line in the sand and said loudly and clear for all to hear: We are not going to take it anymore.

Max J. Thibodeaux Jr.,

Morgan City