Urges and requests the Dept. of Insurance to study the feasibility of prohibiting insurers from imposing more than a 2% deductible, including but not limited to a named-storm or hurricane deductible on any homeowner's insurance policy
Impact
If HR18 is enacted, it could lead to changes in existing insurance policies that might alleviate some of the financial pressures on homeowners during natural disasters. The potential prohibition of high deductibles aims to protect homeowners from unexpected increases in their deductible amounts, thereby ensuring that they are not caught off-guard during severe weather events. The study requested through this resolution is expected to examine these implications and explore an insurance market that remains accessible and sustainable for Louisiana residents.
Summary
House Resolution 18 (HR18) urges the Department of Insurance to study the feasibility of prohibiting insurers from imposing more than a 2% deductible on homeowner's insurance policies, specifically addressing named-storm or hurricane deductibles. The resolution highlights concerns raised in the community about financial burdens on homeowners, particularly in light of practices that arose following Hurricane Katrina in 2005. Insurers have been known to increase named-storm deductibles significantly, leaving policyholders at risk of considerable out-of-pocket expenses during disaster events.
Sentiment
The sentiment surrounding HR18 is cautiously optimistic among proponents, who view the resolution as a necessary step toward reining in excessive insurance practices that can disadvantage consumers. Supporters argue that limiting deductibles will foster greater financial security for homeowners, especially in storm-prone regions. However, there may be some skepticism regarding the ability of the Department of Insurance to act on the findings, leading to a mixture of hope and caution within the community concerning future insurance regulations.
Contention
Notable points of contention include the balance between protecting consumers and allowing insurers to manage their risks effectively. Opponents of limiting deductibles may argue that such restrictions could lead to increased premiums overall as insurers adjust their pricing models to offset potential losses. Additionally, the resolution raises questions about the practicality of enforcing such limits, particularly in light of existing insurance market dynamics. The discussions surrounding HR18 reflect broader concerns about how best to support homeowners while ensuring a viable insurance industry.
Requests the Louisiana Department of Insurance to study prohibiting insurers from using claims that did not exceed the insured's deductible to cancel coverage
Relating to insurance; to limit the number of times an insurer may apply a separate deductible to a homeowner's or a commercial property owner's named storm or hurricane insurance policy.
Requests the commissioner of insurance to issue regulations requiring insurers to disclose to insureds that homeowner's claims not exceeding the policy deductible may be used by the insurer in determining rates or whether to renew a homeowner's policy
Requires homeowners' insurance providers who use a named-storm or wind and hail deductible to offer the policyholder a discount on the annual premium. (8/1/13)
Requesting Each Branch Of The United States Military In The State To Provide Shelters That Can Withstand Hurricanes With Winds Of Over Two Hundred Miles-per-hour For All Of Their Active And Retired Personnel And Families Living In The State.
Requesting Each Branch Of The United States Military In The State To Provide Shelters That Can Withstand Hurricanes With Winds Of Over Two Hundred Miles-per-hour For All Of Their Active And Retired Personnel And Families Living In The State.