About 44% -- almost half -- of the policy holders of Louisiana Citizens Property Insurance are in Jefferson and Orleans Parishes.
But most of that 44% are not in the hurricane-flooded areas of the east bank. They are on the west bank.
After Katrina, many westbankers – and people all over Louisiana – got dropped by their insurance companies because they were customers for less than three years. Their only choice for insurance was the insurer of last resort: Citizens.
ABC26 News anchor Liz Reyes told the story of one of those 44%, Deanna Theiss. She lives in Marrero. Her insurance company canceled her policy even though she made a claim of less than $2,000. She was a policy holder for less than three years.
She signed on with Citizens when no other companies would take her. Her insurance doubled, and she had to take on a part-time job to make the payments.
Why is Citizens Insurance so high? By law, it must charge 10% more than private companies so it can't compete for customers.
But, since Katrina, there's not a lot of companies competing in our region. So, homeowners like Theiss have to pay 10% more than going with a private company.
Go to ABC26.com and watch Liz’s story and tell us what you think about Citizens' rates. Are homeowners being punished because of a lack of competition? What about a temporary reduction of Citizens' rates until more companies start writing policies?
Let us know what you think in the comments section.