Louisiana lawmakers passed a legislative package aimed at improving the insurance market for homeowners in Louisiana last year. One of the laws included in this effort repealed the state’s “three-year rule,” preventing companies from dropping policyholders who had been customers for three years. A year later, state Representative Gabe Firment says only one company has taken advantage of the policy.
“I’m not terribly surprised that there have not been widespread cancellations as a result of the law passing. The major intent of the legislation, was new policies would not be subject to the three-year rule,” Firment said.
Despite reducing protections for homeowners, supporters argued the freedom for insurance companies would attract more carriers and help stabilize the market.
“We’re seeing competition, we’re seeing that homeowners have options. There’s more than just one or two carriers,” Firment noted.
Firment says the 2024 legislation, along with efforts to build resilient structures like the Louisiana Fortify Homes Program, have made a big impact in reshaping the state’s insurance landscape.
“We’ve seen rates stabilize. We’ve seen many carriers file for rate decreases. So, I’m very pleased with the legislation that was passed in 2024, including the repeal of the three-year rule,” Firment explained.
