Insurance policies

Southern Fidelity cancels more than 40,000 Louisiana home insurance policies

“As we move away and hope to stay unscathed from this hurricane season, more of these companies will come back to market, I’m sure, as happened 15 years ago after Katrina and Rita,” said the commissioner.

Donelon also noted that since the cancellations of the three insurers, the number of policies with the public insurer of last resort, Louisiana Citizens, has increased from 35,000 to 82,000. The commissioner expects this number to climb further. at 95,000.

WVUE-TV reported that Southern Fidelity joins two other insurance companies — Lighthouse Excalibur and Maison — that also recently dropped homeowners insurance policies in Louisiana. Together, the three have canceled a total of nearly 100,000 policies since June.

As reported by The Associated Press, Southern Fidelity customers have until September 13 to find a new insurance policy. Meanwhile, Lighthouse Excalibur and former Maison customers have until August 28 to get coverage.

Southern Fidelity’s condition is such that ratings firm Demotech withdrew its financial stability rating for the company, noting that Southern Fidelity failed to secure reinsurance coverage in time for the upcoming hurricane season. And Louisiana isn’t the only state where Southern Fidelity is taking a hit.

Read more: Another Florida insurer on the brink of insolvency

The financially troubled company had previously been ordered by the Florida Office of Insurance Regulation (OIR) to transfer some or all of its policies to another insurer as part of a “wind-up” plan.