The Louisiana Department of Insurance has proposed new regulations to establish guidelines for premium discounts and rate reductions for property owners who complete mitigation projects that meet specific standards.
The proposed rules would apply to all authorized property and casualty carriers operating in the state.
Under the proposal, Louisiana insurers must provide a premium discount for mitigation projects that meet Fortified standards set by the Insurance Institute for Business and Home Safety.
The discount or rate reduction is required to fall within a 20% to 30% range, subject to regulator approval. Carriers may offer discounts outside this range if they provide actuarial justification and secure approval from state regulators.
The notice from the department states that while the reduced rates are intended to benefit policyholders, carriers that have not previously offered such discounts for mitigation projects could experience a decrease in revenue. The department is accepting public comments on the proposed regulations until Nov. 10.
Louisiana’s home hardening program, which began in 2023, was originally scheduled to end in 2025. Lawmakers made the program permanent last year and allocated an additional $15 million in funding.
According to Insurance Commissioner Tim Temple (pictured above), insurance reforms enacted by the Louisiana legislature in 2024 have contributed to stabilizing the market. Temple reported in March that 10 new homeowners insurers have entered the state, and both costs and the frequency of rate filings have declined.
The impact of these reforms is reflected in the rate data. Approved homeowners insurance rate increases in Louisiana averaged 6.6% in 2024, down from 14% in 2023 and 16.2% in 2022. In the first two months of 2025, the Department of Insurance approved seven rate decreases for residential insurers, with reductions ranging from 4% to 11%.
The number of approved rate decrease requests in early 2025 already surpassed the total approved in each of the previous three years, the department said.
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