MORE CHOICES IN HOMEOWNERS MARKET

The market for homeowners insurance in Louisiana is expanding, according to Associated Press and New Orleans Times-Picayune reports. More companies are apparently writing policies, and those that already were in the state are offering more coverage.

Louisiana has been struggling to attract insurers to its homeowners market after Hurricane Andrew hit the state in 1992. Swamped with claims, insurers backed off from the state, especially the coastal areas.

Legislative measures aimed at reforming the tort and insurance regulatory environments seem to be working in the state’s favor, as companies are reconsidering coverage offerings there. However, in some coastal areas south of Interstate 10, insurance may be available only through Louisiana Citizens Property Insurance Corporation, the state’s insurer of last resort.

According to press reports, firms such as Texas-based Colonial Lloyd’s and Sunshine State Insurance, a Florida insurer, are companies new to the state that are looking to insure properties north of Interstate 10.

Two carriers reportedly willing to consider properties south of I-10 include Fidelity National Insurance Co. and Encompass, a division of Allstate Insurance Company.

Insurance Commissioner Robert Wooley told the Associated Press the insurance department is working on programs to encourage storm proofing of houses in coastal areas and to reduce coastal erosion. Such programs would hopefully give insurers incentives to write new policies there. The programs, which would include grants to policyholders to install shutters and roof tie-downs, would be paid for in part with Citizens’ policyholders’ premiums.

Applications to the Citizens plan reportedly fell 37 percent during the first five months of this year, compared with the same period in 2004.