Property owners wait for Citizens fee, rate decisions

By Deon Roberts, Online Editor

Louisiana property owners don’t yet know whether there will be a fee change to cover hurricane claims paid by Louisiana Citizens Property Insurance Corp.

The board of the state-back insurance company of last resort this week postponed making a decision on whether to keep the fee, or assessment, at 5 percent or lower it to 4.3 percent, according to a story by The Associated Press.

In a related story, the Associated Press reported Wednesday that the CEO of Citizens is expected to ask for a rate increase for Citizens policyholders next year.

Here’s an excerpt:

John Wortman, CEO of Louisiana Citizens Property Insurance Corp., told the Associated Press today that he expects the 2010 rate increase to average about 10 percent statewide. That’s on top of a 7 percent increase approved by Citizens’ governing board this year.

Wortman said there are several causes that require the increases, including the $330 million the firm paid out last year for claims after Hurricane Gustav.

Here’s what a commenter on nola.com had to say about that:

No storm claims, why rates going up again? A state-run program is the reason.

Screw the people trying to rebuild. People need to stay away a few more years to convince these politicians to fix the place or goodbye.

Louisiana would not be the only state to see higher rates for its insurer of last resort.

In Florida, Citizens Property Insurance Corp. customers will see a 10 percent increase on their premiums Jan. 1, according to a Miami Herald story.•