January 17, 2012
By: Jana Bell
While Louisiana home insurance costs spiked following the impact of Hurricane Katrina in 2005, those price increases have now slowed considerably.
Data from the National Association of Insurance Commissioners shows that the 11.4 percent increase in homeowners insurance coverage in 2007 was the largest in the nation, reports The Times-Picayune. However, increases over the past two years have been below 2 percent.
Officials told the paper that the easing of price hikes has been brought about by increased competition in the market, allowing consumers to shop for the best rates.
"I am encouraged, and not surprised," Louisiana Insurance Commissioner Jim Donelon told the paper. "The best regulator of cost is competition."
Other insurance experts in the state also told the paper they were encouraged by recent trends showing only mild increases, particularly after the state was hit by Hurricanes Ike and Gustav in 2008.
Nationwide data from the NAIC found that only Texas and Florida had higher home insurance rates than Louisiana. Idaho residents paid the least, with average costs of less than $500 per year.
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