Most of us in Louisiana know too well the money it takes to evacuate ahead of a storm. We have to pay for gas, hotels, food, medications and other supplies. Then there’s the cost of returning from that evacuation.
Some insurers such as State Farm and Farm Bureau refuse to cover those costs unless a mandatory evacuation order is involved. The companies recently defeated an order by Louisiana Insurance Commissioner Jim Donelon that required all companies to reimburse evacuation expenses regardless of such evacuation notices.
The companies appealed to the state government saying insurers should not have to be responsible for reimbursing evacuation expenses unless there is a mandatory evacuation order by the respective parish officials.
As Hurricane Ida approached last year, few parishes issued mandatory evacuation orders. For some areas, evacuations were either recommended or voluntary.
In the aftermath, President Joe Biden visited Laplace and other impacted areas. During that visit, he called on insurance companies to reimburse evacuees/policyholders who already suffered damages to their property.
Donelon subsequently issued an order requiring insurers to cover expenses for policyholders who evacuated from their parishes voluntarily or followed notices that recommended evacuation.
On Tuesday, Donelon appeared on WWL First News with Tommy Tucker to explain that most insurance companies followed his order, but a small group that included State Farm, successfully defeated his order.
Donelon, who has been criticized in the past for caving under pressure from insurance companies, told Tommy Tucker that some policy requirements for evacuation orders for reimbursement are meant to prevent fraud.
Donelon said he didn’t believe the challengers to his order were focused on fraud prevention, but more a refusal to take on more cost.
Listen to Donelon explain how a bill may help the chances of policyholders to have their evacuation costs covered in the future.
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