Citizens sets annual Katrina-Rita bond assessment

Jul 13, 2012

Homeowners will pay $54 on average next year on their insurance policies to cover bond payments being made by state-backed Louisiana Citizens Property Insurance Corp., which had to borrow nearly $1 billion to pay claims from hurricanes Katrina and Rita.

The board voted Thursday to impose a 3.74 percent assessment on all commercial and personal policyholders in the state starting Jan. 1.

The fee is paid by all commercial and personal property policyholders — not just those insured by Citizens — to help pay off nearly $1 billion in bonds sold in 2006 to help the company pay claims after the 2005 hurricanes.

The assessment can be claimed as a credit on the state income tax.