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Thu May 31, 2012
No Relief in Sight For High Insurance Rates
It seems unlikely that the high cost of insurance is going to drop along the Gulf Coast. Experts say politics is the reason.
Louisiana Insurance Commissioner Jim Donelon has this advice for lowering premiums:
“Build high and build strong and you will be able to get affordable flood and wind insurance.”
Donelon and his counterpart for Mississippi, Mike Chaney, spoke at an America’s Wetland Foundation conference on the future of what it calls ‘America’s energy coast.” Donelon says residents in the five Gulf Coast states pay dearly for living in a region prone to hurricanes. Texas has the most activity, followed by Florida and then Louisiana. He says setting up a regional group to share the risk is not likely to happen.
“Alabama doesn’t want to take Mississippi’s exposure on. Mississippi doesn’t want to take Louisiana’s greater exposure on. Louisiana doesn’t want to take Florida’s, and Florida doesn’t want to take Texas. So none of those legislators are going to vote to take greater risk on than their state already has by joining a compact with more vulnerable states.”
Donelon says he saved thousands of dollars by switching his home policy to a new insurance company. He advises everyone to shop around for the cheapest rates.