Short answer: Louisiana Citizens Property Insurance Corporation is the state's insurer of last resort for property owners who can't get coverage from a private insurer. It runs two programs: a FAIR Plan for eligible property statewide and a Coastal Plan for designated coastal areas. Applicants must have an insurable interest, be unable to get voluntary coverage and keep the property insurable.
What Louisiana Citizens is
The Louisiana Legislature created Louisiana Citizens to operate the state's FAIR and Coastal plans. Its governing law is in Louisiana Revised Statutes Title 22, including R.S. 22:2302 and related sections, and the Louisiana Department of Insurance oversees the property insurance market.
Two plans
| Plan | Where it applies | What it focuses on |
|---|---|---|
| FAIR Plan | Statewide, for eligible property | Basic property coverage when the voluntary market won't write it |
| Coastal Plan | Designated coastal areas | Property coverage, including wind, in high-exposure coastal areas |
Coastal Plan coverage generally requires the property to meet applicable building code requirements, including design-wind standards, under R.S. 22:2322.
Who's eligible
Generally, you may apply if:
- you have an insurable interest in Louisiana property;
- you can't obtain property insurance in the voluntary market; and
- the property is in insurable condition.
Applicants typically must identify insurers that declined coverage. Citizens may inspect the property, and policies are generally written for up to one year and renewed annually if the property remains eligible.
Prices are designed not to compete
Louisiana law has generally required Citizens' rates to be noncompetitive with the private market, so Citizens doesn't undercut private insurers. Many homeowners find Citizens premiums higher than a comparable private policy, when one is available. Check current rules with the Department of Insurance.
What Citizens covers and doesn't
Citizens policies provide property coverage similar to, but often more limited than, a standard homeowners policy. Options and limits vary by form and plan. Common gaps:
- Flood. Not covered. Buy a separate flood insurance policy, which is often essential in Louisiana.
- Liability. Some forms include limited liability; others don't. Ask whether you need a separate policy.
- Hurricane deductibles. Named storm or hurricane deductibles can be substantial. See hurricane deductibles explained.
Depopulation and returning to private insurers
Louisiana has encouraged private insurers to take policies out of Citizens through depopulation programs and incentive programs. If you receive an offer to move your policy to a private insurer, compare coverage carefully before accepting or declining. Independent brokers can also shop the voluntary and surplus lines markets for you at each renewal. See FAIR Plan vs. surplus lines home insurance.
Fortified roofs and mitigation
Louisiana's Fortify Homes Program has offered grants for roofs built to the IBHS FORTIFIED standard, and insurers in Louisiana must offer premium discounts for qualifying fortified roofs. Mitigation can help with both premiums and eligibility for private coverage.
Common scenarios
Two insurers won't write your home in Terrebonne Parish. You may qualify for the Coastal Plan if the home meets building code requirements.
You received a depopulation offer from a private insurer. Compare deductibles, coverage and price before deciding.
Your Baton Rouge home is in a flood zone. Citizens won't cover flood. Add a flood policy.
Key terms
- Insurer of last resort: coverage when the voluntary market won't write a property.
- FAIR Plan / Coastal Plan: Louisiana Citizens' two programs.
- Depopulation: moving policies from Citizens to private insurers.
- FORTIFIED roof: a roof built to IBHS standards that can qualify for discounts.
Questions to ask your broker
- Have we checked private and surplus lines options?
- What is my hurricane deductible?
- Do I need separate liability or flood coverage?
- Would a FORTIFIED roof lower my premium?
Bottom line
Louisiana Citizens is a safety net, not a destination. Pair it with flood insurance, understand your hurricane deductible and keep shopping at every renewal. Compare plans nationally in our FAIR Plan insurance by state guide.
Contact Alishahi Insurance or call (877) 711-4545. See insurance in Louisiana.
Frequently asked questions
What is Louisiana Citizens?
The state's insurer of last resort for property owners who can't get coverage from private insurers.
What is the difference between the FAIR Plan and the Coastal Plan?
The FAIR Plan serves eligible property statewide. The Coastal Plan serves designated coastal areas and generally requires building code compliance.
Does Louisiana Citizens cover flood?
No. Flood requires a separate policy.
Who is eligible for Louisiana Citizens?
Owners with an insurable interest who can't get voluntary coverage and whose property is in insurable condition.
What is depopulation?
Programs that move policies from Citizens to private insurers.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.