Louisiana homeowners insured by Florida-based UPC might have to find new coverage

NEW ORLEANS (WVUE) – Extra Louisiana owners are vulnerable to shedding their insurance coverage and the state’s Insurance coverage Commissioner is urging policyholders to take motion.

Florida-based United Property and Casualty Insurance coverage (UPC) is within the newest firm to seek out itself in hassle and can cease writing new insurance policies in Louisiana on Jan. 1.

“That’s as a result of their monetary ranking has been downgraded, to the purpose the place they’re really not eligible for Freddie Mac-backed mortgages,” Louisiana Insurance coverage Commissioner Jim Donelon stated.

Donelon stated UPC’s new ranking nonetheless is sweet sufficient for Fannie Mae-backed mortgages, so not all of UPC’s 37,000 Louisiana policyholders might be initially affected. However these with mortgages backed by Freddie Mac might be force-placed by the lender into way more costly protection.

“We’re going to permit these residents, these policyholders, to buy 60 days from the date of the discover of cancellation from their lender to discover a firm with a ranking that will forestall them from being forced-placed,” Donelon stated.

If they can’t discover a new coverage, Donelon stated they’ll be capable to get a Louisiana Residents coverage that has retroactive protection again to the date of cancellation..

Donelon stated the identical goes for greater than 10,300 Weston policyholders within the state, who might be cancelled Sept. 7.

“These two will not be as threatening as what we simply went via with Southern Constancy, Lighthouse and Maison, from a numbers standpoint,” Donelon stated. “We must be OK.”

To date, Donelon says about 131,000 policyholders throughout the state have been affected. Louisiana Residents has gone from 50,000 policyholders to greater than 100,000, including about 400 new prospects every day.

“They’re good for this season,” Donelon stated. “Now, their problem might be subsequent 12 months, in the event that they nonetheless have these 100,000-plus insurance policies.”

Donelon stated if a extreme hurricance hits, Residents policyholders could be vulnerable to evaluation, which suggests their premiums would go up.

Donelon stated to keep away from that, the state wants extra corporations to get again into the market. He stated he hasn’t heard of any extra potential firm failures.

“Hopefully, we’ve seen the top of it, however I’ve stated that earlier than,” he stated. “So, I don’t make any guarantees in that regard. However I’m cautiously optimistic that that is the top of it.”

Donelon stated UPC policyholders must open any correspondence from their mortgage firm, in case it incorporates a discover of force-placed protection. In that occasion, they need to contact their agent instantly or name the Louisiana Division of Insurance coverage at 800-259-5300.

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