With hurricane season just cranking up for the Gulf Coast, thousands of Louisiana homeowners suddenly find themselves without the crucial protection of homeowners insurance.
The cause? Three separate insurance companies have suddenly announced they'll be ceasing operations this month.
In a move that will affect 30,000 Louisianians, Lighthouse Excalibur Insurance Company sent a letter to its customers stating they would be placed in liquidation, cancelling all state LEX policies effective June 22.
Another 12,000 residents will be effected by the closure of Maison, and the impending shutdown of Southern Fidelity will impact still another 40,000 Louisiana homeowners.
Insurance Commissioner Jim Donelon said the state's Louisiana Citizens program can take anyone who has been left out in the wind and rain, but believes it will only be a temporary situation for most.
"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."
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