Insurance company

Guarantee Association supports claims payments for Americas Insurance Company

Lake Charles, LA (KPLC) – Claims through Americas Insurance Company, which provided homeowners insurance in Louisiana, will now be handled by a warranty association, state insurance commissioner Jim Donelon announced Thursday. .

US News reported in November that Americas Insurance Company lost its accreditation in October. Americas has been licensed in Louisiana since 1991.

Donelon called the insurance company “financial problems”.

He said the insurance company was placed in receivership in Baton Rouge State District Court last week, clearing the way for the Louisiana Insurance Guaranty Association to take over payment of claims, “guaranteeing that most policyholders with pending hurricane claims will be paid.”

The Americas has about 24,000 policies and 13,000 claims related to Ida, and as of Dec. 31, 2020, the insurer covered 1.31% of the Louisiana home insurance market, according to Donelon.

Hurricanes Laura, Delta and Zeta cost insurers $10.6 billion in 2020, Donelon said. Hurricane Ida in 2021 is expected to cost insurers between $10 billion and $20 billion.

“Rising labor and material prices caused by the hurricanes along with the recent spike in inflation have put many insurers at risk of exhausting their reinsurance coverage and running out of cash,” Donelon said in the press release.

Donelon said policyholders will be contacted by the court-appointed receiver or their insurance agent about the claims.

“Until recently, Americas was domiciled in Washington, DC, although virtually all of its policies were written — and all of its Ida-related claims originated — in Louisiana,” Donelon said. “The DC Department of Insurance, Securities and Banking Commissioner has worked closely with LDI and has consented to the redomistication of the Americas from DC to Louisiana for the purpose of conducting this rehabilitation.”

Donelon said policyholders with questions should contact their insurer or insurance agent. Policyholders with questions about claims should contact LIGA at 225-277-7151 or www.laiga.org. Policyholders may also contact LDI at 800-259-5300 or www.ldi.la.gov for assistance.

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