- SureChoice, Louisiana’s second-largest home insurer, announced an average 7.5% cut to homeowners premiums following lower reinsurance costs.
- The cut follows a 12.5% increase eight months earlier; dwelling policies were also affected.
- State Farm insurance has filed for nearly a 10% rate hike on about 300,000 Louisiana policies, keeping average costs high.
- Insurers collectively raised Louisiana homeowners rates 4.9% through November despite the SureChoice reduction.
H2: SureChoice cuts rates as reinsurance costs ease
SureChoice said this week it will lower homeowners insurance premiums by an average of 7.5%, a move the Louisiana Department of Insurance attributed primarily to a 6.7% drop in reinsurance costs this year. The cut applies to SureChoice’s roughly 73,000 home insurance policyholders and to about 17,000 dwelling policies.
H3: Not a straight line down for consumers
The reduction follows a 12.5% increase applied just eight months earlier, meaning many policyholders may see only modest relief overall. Statewide data show insurers still raised homeowners’ premiums by an average of 4.9% through November, the smallest annual uptick since 2020 but still an increase.
H3: State Farm files for near-10% hike
State Farm, Louisiana’s largest home insurer, filed in September to raise rates by nearly 10% for about 300,000 policyholders. The state’s Department of Insurance said State Farm’s request was driven by updated hurricane modeling that projects higher future losses in Louisiana.
H2: Why Louisiana rates remain high
Experts and officials point to multiple, overlapping pressures: worsening natural disasters linked to climate change, inflation and pandemic-era supply-chain shocks. Louisiana insurers rely heavily on reinsurance — the global market that backs insurers — and volatility there raises local premiums. Although reinsurance prices fell this year, broader climate risk and historical losses continue to push rates upward.
H3: Policy responses and mitigation efforts
Insurance Commissioner Tim Temple, who took office in 2024, has supported reforms intended to boost competition and change regulatory rules on rate setting and policy cancellations. Temple emphasized the Louisiana Fortify Homes Program and stronger building codes as key to lowering future losses and insurance costs.
H4: Calls for quicker mitigation incentives
Housing advocates, including Andreanecia Morris of nonprofit HousingNOLA, welcomed SureChoice’s rate cut but said it’s insufficient for many households that have seen premiums double or triple. Morris urged the state to mandate or expand discounts for homeowners who install fortified roofs and other resilience measures; Temple’s office is reportedly exploring such options.
H2: What homeowners should know
- A SureChoice cut can provide short-term relief but may not fully reverse recent hikes.
- Homeowners should review policy notices and compare options, including mitigation discounts.
- Expect continued market variability: reinsurance and catastrophe modeling will keep influencing premium trajectories.
The SureChoice announcement offers a hopeful sign that parts of the market may ease, but State Farm’s filing and statewide increases show Louisiana remains in an insurance squeeze. Officials say long-term relief will depend on both market shifts and stronger resilience measures for homes and coastal protections.
(Reporting based on a Dec. 12, 2025 update from the Louisiana Department of Insurance and local coverage.)
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