Louisiana Lawmakers Reject Key Insurance Relief Bills as Homeowners Face Soaring Premiums

In Baton Rouge, Louisiana, lawmakers have halted two key insurance proposals that were intended to relieve homeowners struggling with escalating insurance premiums. With only two days remaining in the 2025 legislative session, Senate Bill 235 and House Bill 356, which aimed to tackle soaring homeowner insurance rates, have been rejected due to a lack of support from conservative lawmakers.

Proposals Overview

Senate Bill 235, sponsored by Senator Royce Duplessis, sought to create a tax credit of up to $2,000 annually for homeowners with insurance payments, limited to a total of $10 million per year. This credit was aimed at individuals earning below 200% of the federal poverty level. However, despite a narrow Senate approval, the bill ultimately failed in the House with a vote of 49-52, largely due to opposition from Republican lawmakers.

House Bill 356, introduced by Representative Jacob Braud, aimed to require insurance companies to offer “stated value” policies allowing homeowners to insure their homes for a predetermined lower amount instead of the full market value. Initially receiving strong bipartisan support in the House with a vote of 79-20, the bill saw significant changes after Senate amendments modified the wording from “shall” to “may,” effectively removing the mandate for insurers to comply.

Consequences of Rejections

The rejection of these bills has left homeowners in Louisiana facing some of the highest average homeowner insurance premiums in the country, ranking eighth according to Insure.com. Rising costs have resulted from increased reliance on reinsurance markets, particularly affected by natural disasters and high operational costs. Although a few new companies have been approved to write home insurance policies in Louisiana, significant decreases in overall insurance rates are not anticipated in the near future.

Legislative Discussions

House Insurance Committee Chairman Gabe Firment led the opposition against Senate Bill 235, expressing concerns that the proposed tax credit would subsidize high insurance rates without confronting the underlying issues causing these rates to rise. Furthermore, the weakened version of House Bill 356 passes the Senate but provides no meaningful changes to existing coverage options, resulting in dissatisfaction among various stakeholders.

Impact on Homeowners

Advocates for affordable housing and insurance, like those from the Greater New Orleans Housing Alliance, have expressed disappointment over both bills, indicating that they did not adequately address the high costs of insurance facing homeowners in Louisiana. Proponents for reform emphasize the urgent need for legislative action in light of the rising premiums that threaten housing stability for many families.

Session Timeline

As the legislative session approaches its conclusion at 6 p.m. on June 12, the prospects for further discussions or new bills appear slim. The failure to pass these critical relief measures leaves homeowners in Louisiana grappling with ongoing financial burdens related to insurance coverage without immediate relief in sight.