What's happening with UPC's Louisiana policies following insolvency?
The insolvent Florida-based insurer has some 200,000 policies nationwide, including 30,000 policies in Louisiana.
With Florida-based United Property & Casualty Insurance Company declaring insolvency and entering receivership, home insurance policies across the country are in limbo.
Around 200,000 UPC policies will not be renewed as the company continues the runoff process, including some 30,000 in Louisiana, according to the state’s insurance department.
More than 91,000 UPC policies in Florida were picked up by Slide. However, the insurtech’s CEO Bruce Lucas told PropertyCasualty360.com that the company wasn’t looking at other UPC policies, and “isn’t interested in aggregating exposure in Texas and Louisiana.”
The Louisiana Department of Insurance (LDI) reported it is exploring options to keep UPC policyholders from having to obtain coverage from Louisiana Citizens, the state’s insurer of last resort. However, Louisiana’s home insurance market has been facing a crisis and insurers are timid to write business in the state. According to Louisiana Insurance Commissioner Jim Donelon, the state is experiencing its most difficult home insurance market since 2005’s hurricanes Katrina and Rita.
Although Louisiana enacted a $45 million insurance incentive program, which is bringing several companies into the state in the coming months, LDI reported there will be a short period of time between the UPC cancellations and when new companies start writing business.
For those policies facing cancellation, the LDI recommends:
- Contact multiple agents, including both captive and independent agents, to obtain as many quotes as possible for a new policy.
- Ask an agent to contact Citizens for a quote if you are unable to find a policy in the private market.
- If you do get a Citizens policy, continue shopping around for a new policy as the LDI expects more insurers to begin writing this spring. If you cancel and rewrite your Citizens policy with a private company, Citizens will refund any unearned premium.
- If you have an open claim with UPC, that claim may or may not eventually be transferred to the Louisiana Insurance Guaranty Association (LIGA) for adjusting and payment. Continue contacting UPC about your claim unless you are notified it has been sent to LIGA.
- File a complaint with the LDI if your claim is being mishandled by UPC.
- Monitor LDI communications over the coming months for updates on the status of the Insure Louisiana Incentive Program.
Related: