The Louisiana legislature has protected homeowners by preventing insurance companies from charging two “hurricane deductibles” in a calendar year. If you are in Texas or Louisiana, you are likely frustrated that the respective commissioners of insurance allow for deductibles of 5% of the Coverage A dwelling limit. Historically, deductibles were 1% of the limit of liability (policy limits) for the main structure or dwelling. After lobbying from insurance companies, State Departments of Insurance and their Commissioner has approved escalating deductibles for catastrophic losses, particularly Hurricane losses. Of course, in SWLA and SETX, that is a big deal as it has become a fact of life for us.
At least in Louisiana, insurers are prevented from charging two Hurricane deductibles in a calendar year. Following the events of 2005 when both Hurricanes Katrina and Rita struck Louisiana, the legislature responded with a law that prevents insurers from charging two of the elevated hurricane deductibles in a calendar year.
La. R.S. § 1337 provides: “For all homeowners’ insurance policies…, issued or renewed by authorized insurers…, any separate deductible that applies in place of any other deductible to or damage resulting from a named storm or hurricane shall be applied on an annual basis to all named-storm or hurricane shall be applied on an annual basis to all named-storm or hurricane losses that are subject to the separate deductible during the calendar year.”
Some insurers (like surplus lines) argue that they are not “authorized insurers” therefore this does not apply. If you have questions about how the insurance company charged or calculated your deductible, call Brasher Law Firm and we will consult with you for free.