Louisiana’s homeowners insurance market is beginning to stabilize after several years of steep premium increases. Louisiana Insurance Commissioner Tim Temple said the numbers show progress, though policyholders still pay too much.
State data shows the average homeowners insurance rate change has dropped from a 14% increase in 2023 to 0.1% so far in 2026. The average increase reached 6.6% in 2024 and 4.6% in 2025
“I would state that they are improving. We’re seeing fewer requests for rate increases, and we’re seeing more requests for rate decreases,” Temple said.
The Louisiana Department of Insurance has finalized 16 homeowners insurance rate filings so far this year. Nine filings reduced rates, four increased them and three left rates unchanged. The 9 insurers cutting rates cover more than 100,000 policyholders and are expected to lower premiums by a combined $25 mn over the next policy term.
Temple said several factors are helping the market. Louisiana has avoided a major hurricane strike for several years. Reinsurance costs have eased from post-storm peaks. Inflation pressure has cooled. Lawmakers also passed a series of insurance reforms in recent years.
We’ve got over 20 new companies that have licensed to offer homeowners product residential property in Louisiana. That is creating more competition
Louisiana Insurance Commissioner Tim Temple
More than 20 insurers have received licenses to write homeowners coverage in Louisiana since 2024, according to the Department of Insurance. Seven entered so far this year, and two more are in the pipeline.
Temple said existing insurers are also moving back into areas they previously avoided.
“I had a conversation with a company two days ago that told me that they’re now offering homeowners in Lafourche and Terrebonne Parish, where historically they had not for many years,” he said.
Competition is giving consumers more options. Homeowners still need to keep the broader picture in view. Rates are improving, but they have not returned to levels seen before hurricanes Laura, Delta, Zeta and Ida.
Albright said homeowners should not expect large savings at renewal because insurers are still rebuilding capacity and competing selectively.
The shift in the insurance market is also helping the housing market recover. Greater New Orleans, Inc. said home sales in the Greater New Orleans area rose 10% in the first half of 2026 compared with the same period last year.
The insurance crisis changed the home-buying process in a hard way. Premiums climbed so high that some buyers had to cut budgets, look for cheaper homes or walk away from purchases.
Realtors started urging buyers to secure insurance quotes earlier in the process.
Insurance costs have changed what buyers and sellers examine in a property. Roof age has become a major issue because some insurers refuse to cover homes with roofs older than 10 to 15 years.
Fortified roofs are also drawing more attention because they are built to better withstand hurricanes and severe weather.
Sellers are adjusting too. Many sellers now offer mortgage rate buydowns instead of relying only on price cuts, which helps reduce buyers’ monthly payments.
Louisiana homeowners and drivers still pay much more for insurance than residents in neighboring states, Temple said. Lowering those costs remains a priority.
There are other signs of relief beyond homeowners coverage. State officials said dozens of private passenger auto insurance rate decreases have been approved over the past two years.
The commercial property market is improving faster, with some large commercial properties seeing double-digit decreases.
