More Louisiana homeowners left in the lurch as insurer UPC pulls out of state

BATON ROUGE, La. (WVUE) – About 33,000 extra Louisiana owners are about to be notified that they need to discover new property insurance coverage, as troubled provider United Property & Casualty introduced plans Wednesday (Dec. 7) to tug out of the state.

Insurance coverage Commissioner Jim Donelon’s workplace issued a press release confirming the information. It’s believed to be at the least the tenth insurance coverage firm to cease writing insurance policies in Louisiana this yr.

Florida-based UPC is sending written notices of non-renewal to about 33,000 policyholders whose present insurance policies are scheduled to finish in 2023. These notices shall be delivered at the least 30 days earlier than these prospects’ protection finish date.

One other 3,000 UPC prospects, whose insurance policies have been to run out between Nov. 26-Dec. 31, will obtain an bill and a chance for prolonged protection, adopted by a discover of non-renewal at the least 30 days earlier than their prolonged protection finish date.

Associated protection

UPC’s monetary score was downgraded in August. On the time, Donelon stated the corporate’s new score nonetheless was adequate for Fannie Mae-backed mortgages, so not all of UPC’s Louisiana policyholders can be initially affected. However these with mortgages backed by Freddie Mac have been being force-placed by the lender into rather more costly protection.

Wednesday’s announcement, nevertheless, left all the corporate’s Louisiana policyholders needing new protection.

“The Florida Workplace of Insurance coverage Regulation discovered that UPC’s plan for exiting the market supplies an inexpensive foundation to assist an orderly and solvent runoff of its insurance policies,” Donelon’s workplace stated in a press release. “The LDI (Louisiana Division of Insurance coverage) encourages UPC policyholders to intently monitor their mail for any communication from the corporate.

“UPC will proceed dealing with excellent claims for its policyholders. Policyholders who really feel their declare has not been correctly resolved by their insurer could name the LDI at (800) 259-5300 and file a criticism.”

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