Louisiana Citizens Property Insurance Corporation homeowners insurance

Overview

Louisiana Citizens Property Insurance Corporation is the state's insurer of last resort. It is a nonprofit corporation created by the Legislature to insure homes and businesses whose owners are entitled to coverage but cannot buy it from a private company. It describes itself as "state-mandated to be more costly" than private insurers: its plan of operation says its rates are not intended to compete with the voluntary market, so Citizens is meant to be a temporary stop, not a bargain.

Citizens runs two programs under one roof. The FAIR Plan serves the non-coastal area of the state, and the Coastal Plan serves designated coastal areas; its 2026 rate filing lists Coastal Plan business in Cameron, Iberia, Jefferson, Lafourche, Orleans, Plaquemines, St. Bernard, St. Mary, Terrebonne and Vermilion parishes. Most of the book is in the FAIR Plan: of about $421 million of personal lines premium in force on July 17, 2025, the Coastal Plan accounted for roughly $22 million. Citizens does not appear in the NAIC homeowners rankings, and it does not publish a policy count on its site.

Policies are sold only through licensed agents (producers). Richard C. Newberry is chief executive officer; the business office is in Metairie.

History

The Legislature created Louisiana Citizens in 2003, and it began operating the state's residual market on January 1, 2004. It succeeded two older programs: the Louisiana Joint Reinsurance Plan, the FAIR Plan established by Act 424 of 1992, and the Louisiana Insurance Underwriting Plan, the coastal plan.

Hurricanes Katrina and Rita in 2005 defined its first two decades. To cover the deficit, Citizens issued $978.2 million of assessment revenue bonds in 2006, repaid by an emergency assessment charged on virtually every residential and commercial property policy in the state, most recently at 1.36%. On January 9, 2025 the board voted to end that assessment effective April 1, 2025, because enough had been collected to cover the remaining debt, which is scheduled to be fully repaid in June 2026. In 2025 Citizens was still making class action payments tied to Katrina and Rita claims.

The 2020 and 2021 hurricanes, including Laura, Delta, Zeta and Ida, were followed by 11 property insurer insolvencies affecting Louisiana from 2021 to early 2023, according to the Louisiana Insurance Guaranty Association. Since then Citizens has used depopulation rounds to move policies back to private insurers; it has run takeout rounds since 2008.

Homeowners coverage

Citizens writes homeowners, dwelling fire with extended coverage, wind-only and mobile home policies, plus commercial property. Coverage, limits and settlement terms follow its filed underwriting manual and the policy form named on your declarations page; ask the agent which form you have and whether the dwelling is on replacement cost. Like any homeowners policy, a Citizens policy excludes flood, which requires separate NFIP or private flood coverage.

Eligibility and how to apply

Under the plan of operation, anyone with an insurable interest in insurable property may apply through a licensed agent. Underwriters judge the property itself: whether the amount of insurance fits its value, its construction, wiring and condition, prior damage, and its use (vacancy, for example). Neighborhood or environmental hazards beyond the owner's control are not acceptable reasons to decline, and credit scoring cannot be the sole reason. Policies run up to one year and renew as long as the property remains insurable.

Rates, surcharges and assessments

Citizens files rates every year with the Louisiana Department of Insurance. For new and renewal personal lines policies effective January 1, 2026, the approved change was +3.4% for the FAIR Plan, -2.5% for the Coastal Plan and +3.1% statewide, and the filing's exhibits show indicated changes that vary widely by parish and policy type. Citizens policies also carry a charge equal to the state premium tax, which Citizens keeps, and the board can levy a market equalization surcharge on Citizens policies after a deficit.

If a deficit remains, every assessable insurer in the state pays a regular assessment. When the deficit exceeds 10% of the prior year's statewide premium for the covered lines, the remainder is recovered through emergency assessments charged on Louisiana property policies, as happened after 2005.

How to leave

Ask your agent to shop the private market at every renewal; the 17 insurers that Triple-I counts as entering Louisiana's homeowners market since 2024 have widened the options. Citizens also offers policies to private insurers in depopulation rounds. An insurer must be admitted in Louisiana and rated at least B+ by AM Best or equivalent, and your agent must approve the transfer. Round 24 assumes policies on December 1, 2026 and Round 25 on April 1, 2027. If your policy is assumed, you receive a certificate of assumption and can opt out and stay with Citizens for about 90 days afterward, through June 30, 2027 for Round 25. Compare the takeout coverage worksheet Citizens posts before deciding.

Discounts and savings

Citizens' discount disclosure lists FORTIFIED Roof and FORTIFIED Home credits (an IBHS certificate is required; see The FORTIFIED Home standard and insurance discounts), wind loss mitigation credits on owner-occupied homes for roof covering, deck attachment, roof-to-wall connections, opening protection, secondary water resistance, roof shape and door strength (with a survey by a certified wind inspector), and alarm credits on homeowners policies. Higher deductibles of $1,000 to $10,000 (on buildings insured for at least $200,000) and a 5% hurricane deductible option lower the premium. Owner-occupied mobile homes on owned land qualify for a credit if rated for 120 mph winds and at least 12 feet above sea level.

Where it sells and recent market moves

Citizens writes only in Louisiana. Its depopulation rounds have shrunk: Round 21 (April 1, 2025) moved 2,334 policies and $943.6 million of exposure to private insurers, and Round 22 (December 1, 2025) moved 1,839 policies and $611.8 million, both much smaller than the 2024 rounds. Premiums earned fell from $305.7 million in 2024 to $221.7 million in 2025 as written premiums declined. The end of the post-Katrina emergency assessment in April 2025 removed a charge that every Louisiana property owner had been paying.

Claims

Report a claim by calling 888-568-6455 and choosing option 3, online around the clock through your Citizens account, or through your agent. Citizens handles routine claims itself; after a catastrophe, contracted service providers assign independent adjusters, who are supposed to contact you within 48 hours of the report, though Citizens warns that access problems delayed inspections after Katrina. Tarp roof holes, cover broken windows, photograph damage and keep receipts for temporary repairs.

Ratings and reputation

As a state-created residual market, Citizens has no financial strength rating; its capacity rests on surplus, reinsurance and assessments. It ended 2025 with $543.2 million of policyholder surplus and net income of $170 million. For June 1, 2025 to May 31, 2026, it bought $1.86 billion of storm reinsurance, including three catastrophe bonds, above a $238.6 million retention, which it described as protection against a 1-in-122-year storm.

Who it suits

Citizens suits a Louisiana owner who has been declined by private carriers and needs coverage to keep a mortgage. Because its rates are designed to sit above the market, staying longer than necessary usually costs money.

• Strengths: guaranteed availability for insurable property; cannot decline because of the neighborhood; mitigation and FORTIFIED credits; $1.86 billion reinsurance program for 2025-26 and $543.2 million surplus.
• Weaknesses: rates set by law to be uncompetitive; sold only through agents; a deficit can mean surcharges on Citizens policies and assessments on all Louisiana policyholders; no published policy count or coverage summaries.

How to contact Louisiana Citizens Property Insurance Corporation