NEW ORLEANS (WVUE) – 42,000 homeowners are looking for a new insurance policy as of Friday. The company, Southern Fidelity dropped them and now they have 60 days to find a new policy.
Nearly 100,000 policyholders total have been dropped by Southern Fidelity, Lighthouse Excalibur and Maison.
Insurance Commissioner Jim Donelon says six companies have pulled out completely and more than 50 have stopped writing new policies below I-10 and I-12, making the state’s insurer of last resort, Louisiana Citizens, the only option for most.
“As we get further away and hopefully go unscathed through this hurricane season, more of those companies will return to the market, I am certain, as it happened 15 years ago after Katrina and Rita,” Donelon said.
Southern Fidelity customers have until September 13 to find a new policy or sign with Citizens.
Lighthouse and Maison have until August 28.
If you sign with Citizens, the coverage will be retroactive back to the day your policy was canceled, so there’s no gap.
Donelon says the number of Citizens’ policies has jumped from 35,000 to 82,000 and he expects it to grow to 95,000.
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