Leslie Turk

La. homeowners insurance sky high

by Leslie Turk

The National Association of Insurance Commissioners reported yesterday that Louisiana trails only Texas and Florida for high homeowners insurance premiums. The most recent data is for 2006.

The state's average homeowners' insurance premium of $1,257 is ranked third behind Texas, $1,409, and Florida, $1,386. Louisiana's 2006 numbers increased almost 10 percent over 2005.

But Louisiana Insurance Commissioner Jim Donelon told The Times-Picayune that the 2006 figures don't reflect price increases after Katrina, because bills in 2006 would have been based on rates that were approved in 2005 before Hurricanes Katrina and Rita. Next year will be the first time the annual NAIC study reflects true post-Katrina prices, The T-P reports, and Donelon believes those figures from 2007 will show a 12.5 annual increase.

However, Donelon believes the increases in 2008 and 2009 will be much smaller, improving how Louisiana stacks up with other states.

Read the T-P story here.