NEW ORLEANS – Louisiana’s homeowners insurance market is showing signs of stabilization after several years of steep premium increases and limited coverage options, according to the Louisiana Department of Insurance.
Annual homeowners premium increases are essentially flat so far in 2026, compared with increases of 4.6% in 2025, 6.6% in 2024 and double-digit increases in 2023 and 2022, according to LDI data. Only four carriers have filed for rate increases so far this year, compared with 27 in 2025 and 50 in 2024, while nine have filed for decreases.
“After several challenging years in Louisiana, we are starting to see opportunities for consumers to reduce the premiums we’re paying in the homeowners and auto insurance markets,” Insurance Commissioner Tim Temple said in an April market update.
More companies are also entering the insurance market. Three new companies were licensed to write homeowners insurance in Louisiana during the first four months of 2026, adding to 14 new insurers licensed in 2024 and 2025, according to an April LDI market update. Four additional companies had applications pending as of April 30.
Greater New Orleans, Inc. says insurance and legal reforms signed into law by Gov. Jeff Landry in 2024 and 2025, which it advocated for with statewide business and economic development organizations, have helped improve market conditions, attract insurers and strengthen Louisiana’s competitiveness. Insurance Commissioner Tim Temple has also credited the reforms as one factor in the improvement, along with wider adoption of fortified roofs.
Insurance and Legal Reforms
Among the changes backed by GNO, Inc. were revisions to Louisiana’s laws governing bad faith insurance claims and the elimination of the state’s “three-year rule,” which generally prevented insurers from dropping homeowners after they had been continuously insured for three years.
Other measures included the repeal of the Housley Presumption, a legal doctrine that generally allowed courts to presume an accident caused a person’s injuries if certain conditions were met, and changes to how fault and damages are allocated when more than one party bears responsibility.
Lawmakers also provided recurring funding for Louisiana Fortify Homes Program grants and created a new $10,000 state income tax credit for expenses associated with FORTIFIED roofs.
The reforms, however, are not the only factors contributing to changing market conditions. Lower reinsurance costs, Louisiana’s recent stretch without a major hurricane and increased investment in stronger, more storm-resistant homes have also contributed to more favorable conditions.
LDI has specifically cited reinsurance as a factor in some homeowners rate reductions. Cajun Underwriters said its 10% decrease was driven in part by favorable recent loss experience and lower reinsurance costs. SureChoice Underwriters Reciprocal Exchange, or SURE, which writes about 8% of Louisiana’s homeowners market, also attributed a 7.5% average rate decrease approved in late 2025 primarily to lower reinsurance costs.
More Carriers Enter Insurance Market
More recent figures provided by GNO, Inc. put the number of new insurance carriers licensed in Louisiana over the past three years at 21, including seven so far this year.
The addition of carriers does not necessarily mean all are offering comparable coverage throughout the state, but GNO, Inc. says consumers have more options than they did during the height of Louisiana’s insurance crisis. The organization said homeowners who previously may have received only two or three insurance quotes can now obtain six or seven.
Commercial real estate insurance rates are also down about 30% on average, according to information provided by GNO, Inc., which cited Ben Albright of the Independent Insurance Agents of Louisiana. The decline was tied in part to lower reinsurance rates.
The number of fortified roofs in Louisiana has grown to roughly 14,000. GNO, Inc. said Louisiana is among the fastest-growing areas of the country for fortified roofs and pointed to state incentives, including the Fortify Homes tax credit and retrofit measures included in SB 28, SB 52 and HB 145, as contributing to the growth.
Enrollment in Louisiana Citizens Property Insurance Corp., the state’s insurer of last resort, has dropped nearly 20% from its 2022 peak, falling to roughly 114,000 policies as of June, according to data provided by GNO, Inc.
The changing insurance environment is also coinciding with increased activity in the housing market. Home sales in Greater New Orleans rose 10% during the first half of 2026 compared with the same period last year. GNO, Inc. said area brokers have linked the rebound in part to easing insurance costs.
Economic Development Impact
For Greater New Orleans, GNO, Inc. argues that the insurance market has implications beyond individual homeowners.
The organization works with site selectors and industry executives and said insurance costs are among the factors considered when companies make location and investment decisions. GNO, Inc. views the improving insurance environment as a potential competitiveness gain for the region as it works to attract and retain businesses and residents.
GNO, Inc. also provides online insurance resources for policyholders, including information on insurance discounts, fortified roofs, grants, tax incentives and other programs.
Federal Flood Insurance Push
GNO, Inc. is also pursuing insurance changes at the federal level through the Coalition for Sustainable Flood Insurance, or CSFI, which it founded in 2013 and continues to lead. According to GNO, Inc., CSFI has grown into a national coalition with more than 900 member organizations.
CSFI is advocating for the Commission on Natural Disaster Risk Management and Insurance Act, H.R. 8439, which would establish a congressional commission to examine federal insurance solutions. CSFI is also advocating for reform and reauthorization of the National Flood Insurance Program ahead of its Sept. 30, 2026, deadline.
