Our real estate brokerage serves over a thousand families in the New Orleans metropolitan area annually through its 130 Realtors. Our fellow brokerages and their respective realtor associates throughout our communities serve hundreds of thousands more. We are all gravely concerned about the proposed 63% premium increase Louisiana Citizens has proposed and its impact on so many facets of our respective local economies.

Affordability drives the real estate industry. As simple as it sounds, buyers must be able to buy in order for sellers to be able to sell. As you know, both pre and post Hurricane Ida, many insurers have pulled out of the state and much of that business has shifted to Citizens. While we appreciate Citizens being the insurer of last resort, ultra-high rates may entice new entrants to write insurance that may still be unaffordable to most. In the past two months, we have seen a significant increase of deals fall apart due to the unexpectedly high increase in insurance premiums that force buyers out of the market. A drastic premium increase will undoubtedly exacerbate this affordability crisis due to a significant reduction in the number of people able to buy homes. The result – home values, already challenged by rising interest rates and higher flood insurance premiums, will decline dramatically. Louisiana families can not afford to pay these premiums, thus setting the table for a real estate market that we have not seen in decades. A steep decline in property values will have devastating effects on the finances of Louisiana residents.

A 63% increase in Citizens premiums might allow insurers to take another look at our market but at rates Louisiana families cannot afford. Certainly we need to do all that is reasonable to help Citizens stay afloat during these typically short periods with market dislocations, while keeping rates affordable to Louisiana families. We request your office place an 18-month moratorium on allowing Citizens to increase premiums which should help reduce premium inflation by other carriers and give time for new insurers to enter the market.

You have dedicated years to fighting high insurance rates for our fellow Louisianians. We respectfully request that you continue your fight by doing everything in your power to prevent this excessive increase.

Sincerely,

Zuheily Hernandez Lemoine
Realtor
NOLA Living Realty