For Louisiana Homeowners, it is important to understand when and how your homeowners insurance company can or cannot cancel or refuse to renew your policy. YOU HAVE A RIGHT TO KNOW WHY If your insurance company decides it wants to cancel or not renew your policy, you have the right to know why. If you make a written request for the reason of cancellation, the company must respond within six months and specify in writing the reason for the cancellation or refusal to renew. Any insurer cancelling or refusing to renew a policy providing property, casualty, or liability insurance on any property shall, upon written request of the policy’s named insured, specify in writing the reason or reasons for such cancellation or refusal to renew. Such request shall be mailed or delivered to the insurer within six months after the effective date of cancellation or expiration. LSA-R.S. 22:1265 A (1) NO CANCELLATION FOR ACTS OF GOD You should be aware that your insurance company cannot cancel, refuse to renew or increase the amount of the premium on your homeowners policy based solely on a loss caused by an “Act of God.” An “Act of God” is defined as an incident due directly to natural causes and exclusively without human intervention. However, the company may make such changes to your policy due to an “Act of God” if they make the changes on an area-wide rating basis at the beginning of a new policy period. REASONS FOR CANCELLATION, NONPAYMENT OF PREMIUM, FRAUD, […]
While some longstanding State Farm policyholders may still have a fixed $500 deductible, most Gretna, LaPlace, New Orleans LaCombe, Slidell, Little Woods, Marrero and Bush Homeowners suffering structural damage due to the Spring Hail Storms and tornadoes will probably face a deductibles based upon a percentage of the structural policy limits instead of a fixed deductible of say $500. Homeowners, be careful as you might be shortchanged when the homeowners insurance adjuster refuses to pay your loss because “the damage is less than the percentage deductible”. The adjuster may have overlooked hidden structural damage or mold or may have miscalculated the cost of repair. Or the adjuster may even go as far as to try improperly exlcude covered damage under a policy provision. A Hale Damage Lawyer can assist you hiring professional to prove your claim, including engineers, mold and meteorological experts so that you can fully recover your damages, including your recoverable depreciation, debris removal costs and other damages. The Homeowners Insurer must pay the insured homeowners “a figure over which reasonable minds could not differ” within a timer period set by law or be subject to bad faith penalties.
Louisiana Insurance Laws are found primarily in Louisiana Revised Statutes Title 22. The laws are set forth as follows:
Many homeowners I know are unaware they may be entitled to a refund of the Louisiana Citizens Property Insurance Corporation Special Assessment paid along with their regular homeowners insurance premium. The assessment is paid in addition to her normal homeowners insurance premium and is listed separately on the Declaration page of the homeowner’s policy as a Louisiana Citizens Assessment. The State of Louisiana authorized the special assessment to pay for LA Citizens’ billion dollar deficit caused by Hurricanes Katrina and Rita. Bonds were issued so that LA Citizens could pay its Hurricane insurance claims. This assessment will remain in effect until the bonds are retired in 2025. To help Louisiana policyholders recoup this additional charge, the Louisiana Legislature passed a law, R.S. 47:6021, which authorizes a refundable income tax credit for the Louisiana Citizens assessment. Policyholders can only claim the refund in the year paid. The credit can be claimed on either the individual income tax return or by filing a “Request for Refund of Louisiana Citizens Property Insurance Corporation Assessment”, Form R-540INS after the assessment has been paid. This credit is available only for the amount of the LA Citizens assessments and is not available for the normal homeowner’s premium. If you have questions concerning your eligibility for the refund, contact your CPA or the Louisiana Department of Revenue at 225-219-2700. Additional Resources: LA Citizens Emergency Assessment Calculation LA Citizens Reasons For Assessment