Insurance companies continue to hike up insurance rates for homeowners around Louisiana.
Tri-parish residents who have insurance through Amica Mutual Insurance Co. can expect to see a statewide average increase of 14.2 percent and a new 5 percent mandatory hurricane deductible in October after approval from the Louisiana Insurance Rating Commission.
Rates have increased around the state as companies that stuck around after the 2005 hurricane season try to recover from financial loss.
Amica’s increased rates will only affect the 1,269 customers it presently serves; the new deductible will apply to all future clients in coastal parishes including Terrebonne, Lafourche and St. Mary.
Rising rates continue among numerous agencies.
Aegis Security Insurance Co. n serving 3,000 customers statewide n was approved for an average increase of 30 percent for two homeowner’s policies and a 20 percent increase for manufactured homes. Included is a $2,500 hurricane deductible.
Protection programs are seeing the same trend.
Markel American Insurance is rewrote a supplemental national disaster protection program due mortgage relief provisions that became too costly, said Greg Pelligrini, vice president and General Counsel of First Premium Insurance Group Inc. in Covington. Pelligrini had been selling these policies not long before Katrina and Rita.
Retracting the provisions caused an increase in cost to customers to the same extent as increasing rates by 28 percent.
“We never thought it would be a big issue, said Pelligrini. “It’s not a frequency problem, it’s a severity problem.”
The rating commission approved rate increases, hoping to draw insurance companies back to Louisiana, to provide more options for homeowners.
Andrea Carlson can be reached at (985) 876-3008 or firstname.lastname@example.org.