October 10, 2022 


Louisiana Department of Insurance Approves Citizens Rate Increase and Offers Tips for Policyholders

The Louisiana Department of Insurance (LDI) has approved Louisiana Citizens’ request for a 63% rate increase on its residential property insurance policies beginning January 1, 2023. The rate increase will not affect Citizens’ current policyholders until they renew their policy after that date.

Citizens is the state’s insurer of last resort. Louisiana law requires Citizens’ rate for each of its policy types in each parish to be at least 10% over the highest qualifying market rate or 10% over the actuarial rate, whichever is higher.

The rate increase is almost totally a result of the increased cost of reinsurance for Citizens’ increased number of policies this hurricane season. The best way to reduce the burden of this and future Citizens rate increases is the Insure Louisiana Incentive Program, which is awaiting funding from the legislature.

There’s no sugarcoating it — this increase is extremely painful but required by law to make sure Citizens can handle a potential future disaster for its many policyholders,” said Commissioner Jim Donelon. “My staff and I are working with the legislature to attract more insurers to the state through the use of a program that was highly effective following hurricanes Katrina and Rita, which will give Citizens policyholders, and all Louisianans, more and cheaper insurance options in the private market.”

Citizens policyholders should be aware of the following:

  • The rate increase will not affect your policy until renewal. For example, if you get a Citizens policy on November 1, 2022, your premium will be unaffected through October 31, 2023.

  • Citizens policyholders should contact multiple independent insurance agents at least monthly to request quotes from private insurers.

  • The LDI expects the number of insurers writing policies to increase in the coming months. Citizens will refund your unearned premium if you find a policy with another insurer before the end of your Citizens policy term.

About the Louisiana Department of Insurance: The Louisiana Department of Insurance works to improve competition in the state’s insurance market while assisting individuals and businesses with the information and resources they need to be informed consumers of insurance. As a regulator, the LDI enforces the laws that provide a fair and stable marketplace and makes certain that insurers comply with the laws in place to protect policyholders. You can contact the LDI by calling 1-800-259-5300 or visiting