Despite some Louisiana homeowners losing their policies this because their insurance companies went under, state insurance commissioner Jim Donelon says he doesn't think any more companies are on the verge of insolvency, and says the Louisiana insurance market is still in good shape.
Five insurance companies have gone under since Hurricane Ida, but Commissioner Donelon says homeowners can still find insurance without having to buy policies from the state insurer of last resort.
"There are still markets out there available in the private sector to write policies," he said. "And I think that market will only increase as we go forward."
Even so, the number of policies with Louisiana Citizens has increased in the wake of hurricanes Laura, Delta, and Ida. Donelon says that is to be expected, but he also believe it will be short-lived.
"For now, that's going to continue to grow," said Donelon. "By the end of this year, it will stop growing, and companies will start taking policies out of Citizens as they have been doing for the past ten years."
Donelon says the state is in far better shape than it was the year after Hurricane Katrina, and while there have been a rash of insurance insolvencies, he says the number of homeowners left with no other choice but Louisiana Citizens is tens of thousands fewer than it was in 2006.