Why lawmakers have limited impact on your Louisiana homeowners insurance rates

The big picture: Homeowners insurance rates in the U.S. are expected to hit an all-time high this year, according to an Insurify report, as the market faces a barrage of climate change-driven natural disasters and increased costs.

• Insurify puts the national average premium at $2,522, according to a Bloomberg report on the data.
• That comes after an increase of about 20% in the past two years, the report says.
• It's leading many insurers to tighten their policies while a rising number of homeowners simply opt out of the market altogether, the Washington Post reported, though that's not an option for most.

Zoom in: Gov. Jeff Landry signed into law a handful of industry-friendly bills passed during the legislative session that Insurance Commissioner Tim Temple hopes will drive more insurance business in the state.

• The bills included the removal of the state's unique "three-year rule," which kept insurance companies from booting a customer off its roster if they'd been with the insurer for at least three years.
• Lawmakers also made the fortified roof grant program, which helps some homeowners pay for roofing upgrades, permanent and passed changes aimed at decreasing the number of insurance lawsuits.
• Customers of Citizens, Louisiana's insurer that steps in when no other company will, also faces a temporary mandate to pause surcharges, NOLA.com | The Times-Picayune reports.

What he said: Overall, the new regulations "will help create a competitive and stable insurance marketplace for Louisianans," Temple has said.

Yes, but: Lawmakers have limited power to impact what homeowners are paying when they get their annual premiums.

• "Competition does help, but economics is also a variable, and the insurance companies are going to go where they're economically viable," says Travis Hodges, a managing director with VIU by HUB, which compares insurance quotes for consumers. "When you combine [risk for natural disasters,] inflationary pressure and rising prices of homes … it's a really bad, perfect storm for the consumer."
• Insurance companies are getting squeezed by the increased frequency of claims getting filed and the severity of those claims going up because of the rising cost of housing, Hodges tells Axios New Orleans.
• Plus, the reinsurance market, aka the insurance companies who insure your insurance company, is getting battered by the same forces, but on a global scale.

In other words, everyone is paying more.

How to lower your homeowners insurance rate

At the individual level, there are few options to bring insurance costs down, but they're worth trying, Hodges says.

🚗 Bundle your policies: When you price out your insurance, ask for quotes that include bundling policies, such as combining your car and homeowners policies. Those typically offer the best discounts, he says, and it's worth shopping around.

⬆️ Raise your deductible: "Make sure your deductible is as high as you can afford it," Hodges says.

🔨 Roof fortification: Improving your roof is another way to seek a discount, but that does require an upfront cost, which for some can be offset by the state's grant program.

• Caveat: Roof fortification in Louisiana doesn't come with a minimum guaranteed discount, which consumer advocates say is a weakness of the state's program.

What we're watching: "It's too unpredictable" to say whether there's any real relief on the horizon, Hodges says, especially at the start of a hurricane season that's already breaking records.

The bottom line: Even if Louisiana doesn't see a storm make landfall, U.S. insurers are still impacted by the national and global markets so a lot is riding on this hurricane season.

• "Everybody has degrees of pain, but we only care about ours," Hodges says. "Misery loves company until it costs me more, but that's the reality."