Louisiana Citizens Property Insurance Corp. increases commercial coverage limits
BATON ROUGE – The Louisiana Department of Insurance said the Louisiana Citizens Property Insurance Corp. (Citizens) had voted to increase the amount of commercial property insurance coverage available to businesses to ensure that they can acquire sufficient coverage through Citizens if they are unable to ” obtain coverage in the private market.
Commercial coverage limits have been temporarily increased to $ 10 million for a single building, $ 3.2 million in content and up to $ 20 million in comprehensive coverage per insured, from $ 5.5 million for a building alone, $ 2.2 million in content and $ 11 million in comprehensive coverage per insured. These increases went into effect immediately after the vote at last week’s meeting. They are expected to expire in two years, at which time the limit levels will be reassessed. The last time the trade limits were raised was in 2013.
Citizens also covers personal property up to $ 1 million and offers content coverage of $ 500,000.
After the busy 2020 hurricane season with Hurricanes Laura, Delta and Zeta followed by Hurricane Ida this year, some companies are limiting their underwriting to property insurance. Fewer companies actively writing commercial and private property policies in the state will likely mean more residents will need to purchase coverage from Citizens, the state-sponsored insurer of last resort, which provides coverage when none. option is only available from private companies.
âThe Louisiana Citizens Board of Directors has taken prudent steps to ensure that citizens can accommodate a wider range of properties if businesses and homeowners cannot find coverage in the private sector. Citizens are prepared for the changes in the private market after the harsh consecutive storm seasons that we have just experienced, âInsurance Commissioner Jim Donelon said in a press release.