A bill that would revive an incentive fund designed to lure more property insurance companies to Louisiana passed by a vote of 90-8 in the Louisiana House Wednesday.
The bill now faces debate in the state senate.
The bill would create a $45 million fund that would provide cash to property insurance companies that write new policies for Louisiana homeowners currently in the state-run Louisiana Citizens Insurance pool, an insurance provider of last resort that by law must charge higher premiums.
Insurance Commissioner Jim Donelon says this could benefit around 40,000 Louisiana homeowners.
Since hurricanes Laura and Ida in 2020 and 2021, thousand of Louisiana homeowners lost insurance coverage when their providers either went under, or stopped renewing policies.
Critics argue there is no guarantee this incentive program will work, but Donelon says a similar program, created in response to a similar problem caused by the 2005 hurricanes, helped many homeowners find new insurance.