(The Center Square) — Insurance Commissioner Tim Temple will pursue legislation this session to provide for dedicated funding for the Louisiana Fortify Homes Program.
Currently, the program’s funding is subject to legislative appropriation, making it unpredictable.
Temple is looking at models from other states to address the issue. Mississippi funds its fortification program through a tax on surplus lines insurance policies, providing a stable revenue stream. Alabama, on the other hand, dedicates a portion of fees collected from insurance industry filings to support its program.
Temple’s proposal would blend elements of both approaches. He plans to slightly increase certain Department of Insurance fees—such as those paid by insurance adjusters, agents, and companies—and use the additional revenue to help fund the program. Additionally, he wants to allocate a portion of the existing homeowners’ insurance premium tax, which is currently 3.25%, to the initiative.
“If I’m paying a premium tax on my homeowners insurance, that tax should go to something that could help benefit me from a homeowner’s perspective,” Temple said in an interview.
Temple likened the concept to the gas tax, which is intended to fund road and bridge maintenance. Instead of going towards efforts to fortify more roofs, the money currently goes to the state’s general fund.
The program has been a success in an otherwise stubbornly expensive insurance industry.
Temple also highlighted another aspect of the program: the tax deduction available for homeowners who choose to install fortified roofs on their own.
Currently, homeowners can claim up to $5,000 as a tax deduction for these improvements. Temple plans to propose legislation to increase that deduction to $10,000, aligning it with the grant amount available through the program. “
If we’re willing to give $10,000 of money in a grant, we should also be willing to extend a tax deduction up to the same level for someone who chooses to put that on themselves,” Temple said.
According to the Louisiana Legislative Auditor’s office, the median LFHP participant saved $1,250 annually on insurance — slashing premiums from $5,625 to $4,375 — after upgrading their roof for $16,229, offset by a $10,000 grant. The auditor mentioned, however, that “homeowners had mixed views about the affordability of insurance after obtaining the discount.”
A survey cited by the auditor’s office showed that participants “were very satisfied and are very likely to recommend it to family and friends.”
