Homeowners holding insurance policies with failed insurance companies Lighthouse Excalibur, Maison, and Southern Fidelity now have more time to find another insurance company.
Following the damage done by Hurricane Ida and the past two hurricane seasons, the companies are unable to pay off their debts to more than 80,000 policyholders in Louisiana.
Now, Louisiana Insurance Commissioner, Jim Donelon announces that the policy cancellation date for policyholders has been extended to June 30.
Lighthouse Excalibur and Maison policies will be canceled on June 30. Southern Fidelity policies will be canceled on July 15 according to Commissioner Donelon.
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This comes after the Louisiana Department of Insurance took action to secure additional reinsurance for those policyholders through the end of June.
The change was made to provide more time for Louisiana insurance agents to help policyholders find new coverage.
“Policyholders whose insurance policy is canceled will be covered by Citizens for claims occurring between their cancellation date and the date their agent binds a new policy with Citizens if that date is no later than 60 days following the original policy’s cancellation. This extension does not affect policyholders who find a new policy with an insurer other than Citizens,” said Donelon.
He adds, “With this change, Citizens will effectively provide coverage for Lighthouse Excalibur and Maison policyholders from June 30 through August 28, and for Southern Fidelity policyholders from July 15 through September 13, as long as agents place policies with Citizens by the 60-day deadline and it is a risk that meets Citizens guidelines.”