USAgencies

It’s election season and politicians are out shaking hands, kissing babies, and telling everyone listening what they plan to do if elected. And, the four major candidates for Louisiana governor are no exception. They all have a wide range of different ideas for eliminating a persistent obstacle to south Louisiana’s hurricane recovery – high homeowners insurance rates. Luckily, renters insurance rates are more affordable.

To begin with – Bobby Jindal and Walter Boasso plan to force more insurers to offer homeowners policies covering wind damage. Meanwhile, Foster Campbell wants to team up with other coastal states and negotiate, as a single group, with insurance companies for lower rates.

Rounding out the field – John Georges said he would consider offering insurers $100 million in incentives, which would be on top of the $100 million in taxpayer money that’s already being offered to companies that agree to write policies along Louisiana’s coast. Georges, an independent from New Orleans, believes in using the carrot approach.

All four candidates agree something needs to be done – and, easing existing insurance rates is the key to speeding the storm recovery in south Louisiana, where some homeowners are unfairly paying double for insurance coverage than they were prior to hurricanes Katrina and Rita.

Sitting Governor Kathleen Blanco and Insurance Commissioner Jim Donelon both backed the dissolution of the politically appointed Louisiana Insurance Rating Commission. Insurance companies had claimed for years it was a hindrance to moving forward. In addition, Blanco also supported Donelon’s plan to offer $100 million to insurers who agree to write some of the policies now written by Louisiana’s taxpayer-backed Citizens Property Insurance Corp.

While none of the candidates who want to replace Blanco expressed any plans to do away with those policies, all four have different proposals they say will keep the cost of homeowners insurance stable – plus, attract more insurers to the state and protect consumers from high rates and insurance companies that act in bad faith.

According to Bobby Jindal – he would force insurers that currently write only fire and theft policies to also offer coverage for wind and hail damage – which are the policies most in demand along the tropical storm and hurricane-vulnerable coast. Jindal believes the current system is stacked against the homeowner by essentially allowing insurers to write half a policy – just the fire and theft portion – while leaving the homeowners who need it the most to look elsewhere for wind coverage.

Taking Jindal’s idea a step farther, Boasso, a Democratic state senator from St. Bernard Parish, would force companies that write auto insurance policies to also provide homeowner policies that include wind coverage.

Another plan comes from Campbell, a Democratic member of the Public Service Commission from Bossier Parish, who would talk with governors of other Gulf and Atlantic states and pool their insurance markets into one, multistate market.

The proposed coalition of states would then represent a massive insurance market where more reasonable rates for homeowners along the coast and farther inland would be demanded from insurance companies. The thought here is that, by banding together, the governments of these states could negotiate from a position of greater strength – although that remains to be seen.

Finally, Georges takes a more pro-industry approach, even making an issue of Blanco’s veto of a bill earlier this year that would have meant cost increases for auto insurance around the state. Adding to the bureaucratic problem, Georges would appoint a hurricane “recovery czar,” whose job, in part, would be to meet with insurance companies in order to pitch Louisiana as a good place to do business.

As governor, Georges promises he would network with the insurers – in meetings alongside the insurance commissioner and his recovery czar – and persuade those executives to write policies along the coast.

Whichever way you’re leaning – keep in mind – these are merely campaign proposals – that may or may not solve the existing problem of high homeowners insurance rates or the lack of wind and hail coverage. While you’re waiting for the candidates to fulfill their campaign promises – why not see if you can save a few bucks by getting a free renters insurance quote today?

Do you believe any of the candidates running for governor will ever solve the high homeowners insurance rates in the coastal states or is it just wishful thinking? Feel free to share your thoughts in the comments section below.