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.