A coalition of New Orleans realtors is asking state Insurance Commissioner Jim Donelon to delay approval of a requested 63 percent rate hike for more than 100,000 homeowners who have policies with Louisiana Citizens, the state’s insurer of last resort.
The realtors say they are trying to find ways to help stabilize the city’s housing market, with interest rates and insurance rates going up.
For months, they say they have seen more and more prospective homebuyers unable to afford the houses listed for sale.
With more insurance companies pulling out of the state, becoming insolvent or simply refusing to write policies south of I-12, Louisiana Citizens went from around 37,000 policy holders last year to more than 114,000 this year.
To cover that added risk and the high price of re-insurance, Citizens filed a request seeking approval of a 63 percent rate hike that would take effect Jan. 1, 2023.