Design Highlights
- SureChoice and Elevate are reducing homeowners’ rates by 7.5% due to significant savings from reduced reinsurance costs.
- The average annual homeowners’ insurance cost in Louisiana is about $2,220, indicating a need for rate reductions.
- More than 90,000 policyholders will benefit from these cuts, enhancing affordability for homeowners in the region.
- Member-owned insurers prioritize policyholder accountability, allowing them to focus on sustainable practices rather than shareholder profits.
- The recent stabilization in the reinsurance market enables these insurers to pass savings directly to policyholders.
In a surprising turn of events, Louisiana’s member-owned insurers are slashing homeowners’ rates, and honestly, it’s about time. The Louisiana Insurance Commissioner has given the green light for a 7.5% average rate decrease for SureChoice and Elevate, two players that have been hanging around long enough to know the game. This decision, announced on December 11, 2025, covers more than 73,000 homeowners policies and over 17,000 dwelling fire policies.
That’s right, folks—over 90,000 policyholders across the state are about to breathe a little easier.
Over 90,000 policyholders in Louisiana are set to enjoy some much-needed relief with these rate cuts.
SureChoice, the second-largest homeowners insurer in Louisiana, is holding about 8% of the market share. Elevate, on the other hand, is a little more exclusive, operating solely through Goosehead. Both are member-owned, which means they’re not just raking in profits for shareholders—they’re actually accountable to their policyholders. The ownership structure is a reciprocal model, gaining traction in the insurance world, especially for coastal properties like those found in Louisiana.
What’s the main driver behind these cuts? Reduced reinsurance costs. Yes, you heard that right. Falling reinsurance expenses mean that insurers can finally pass some savings down the line. It’s about time they did! Louisiana’s homeowners have been grappling with average annual insurance costs around $2,220—5% higher than the national average. Choices like Farmers at $1,070 or State Farm at $1,290 just seem like distant dreams for many. Additionally, many insurers are exiting the Louisiana market due to high risk, which has compounded the challenges for homeowners in finding affordable coverage. The average rate decrease approved is 7.5% for homeowners in Louisiana is a significant shift that many have been eagerly awaiting.
High-risk coastal areas have made insurance a financial minefield, and now, the tides are starting to turn.
The effective date for these cuts is set for February 16, 2026, which feels like a lifetime away. But the anticipation is palpable. This move not only offers some relief but also signals potential stabilization in the reinsurance market. Most policies operate with liability coverage limits ranging from $100,000 to $500,000, providing essential protection for homeowners against legal claims. It’s a welcome contrast to the previous trend of skyrocketing premiums that had many homeowners feeling like they were being taken for a ride.
