(The Center Square) − Louisiana property insurance policyholders will see some financial relief this year as the Louisiana Citizens Property Insurance Corporation (Louisiana Citizens) announced an early end to a statewide assessment.
The 1.36% charge, added to all residential and commercial property insurance policies, will conclude in April — more than two years ahead of its originally scheduled end in June 2026.
The assessment has been used to pay off bonds tied to claims from hurricanes Katrina and Rita.
Louisiana Citizens, the state’s insurer of last resort, made the decision during a board meeting under the leadership of Commissioner of Insurance Tim Temple, who also serves as chair of the Citizens Board of Directors.
“When Commissioner Temple took office, he encouraged our staff to find innovative ways for Louisiana Citizens to operate more efficiently and find savings for policyholders,” said Louisiana Citizens CEO Richard Newberry. “Our team identified this opportunity and brought it to the board for approval at today’s meeting.”
Temple acknowledged that while the savings from ending the assessment may seem modest, every reduction helps in making the state’s property insurance market more affordable.
“Every little bit helps as we work to create a more available and affordable market in Louisiana,” Temple said in a news release.
An assessment is a fee added to insurance policies to cover specific costs. In this case, Louisiana Citizens used the 1.36% assessment to pay off bonds issued to cover claims from past hurricanes.
The financial relief doesn’t stop there.
Starting Jan. 1, Louisiana Citizens policyholders will see a temporary waiver of the 10% surcharge on their policies.
This waiver, effective for three years, will apply to new policies or renewals and stems from legislation authored by Senate Insurance Committee Chairman Kirk Talbot, R-Jefferson, as part of Temple’s property insurance reform efforts.
