Louisiana requires liability limits of 15/30/25. That covers $15,000 for one person's injuries, $30,000 total for injuries per accident, and $25,000 for property damage. Here's how that compares with a common higher-limit setup:
Louisiana requires liability limits of 15/30/25. That covers $15,000 for one person's injuries, $30,000 total for injuries per accident, and $25,000 for property damage. Here's how that compares with a common higher-limit setup:
Deductibles work in your favor if you plan carefully. Moving collision from $500 to $1,000 typically lowers your premium, as long as you can actually cover $1,000 the day a claim happens. Keep an eye on your comprehensive deductible too, since flood and hail claims fall there. Don't cut liability limits to save money, though. Lowering liability saves little and leaves you exposed in exactly the type of claim Louisiana sees most.
Why GCs Require a Waiver of Subrogation
The Role of the Certified Evaluator
| Feature | Standard Reroof | FORTIFIED Roof |
|---|---|---|
| Deck nails | Often smooth-shank | Ring-shank required |
| Deck seams | Typically unsealed | Sealed against water intrusion |
| Third-party verification | None | Certified evaluator |
| Designation certificate | No | Yes |
| Mandatory premium credit | No | Yes, under Louisiana rules |
| Grant eligible | No | Up to $10,000 through LFHP |
| Water entry after shingle loss | Likely | Greatly reduced |
A Louisiana Citizens homeowners policy is the state-created safety net for property owners who cannot get coverage from a private insurer. It typically costs more and may cover less than a standard policy, so most homeowners treat it as a temporary stop while they work their way back to the private market.
If you own a home in Covington, Slidell, or anywhere in St. Tammany Parish, you probably know someone who ended up with Citizens after a carrier pulled out of the state or non-renewed a policy. The hurricane seasons since 2020 forced thousands of families into the state plan, and many are still there. The good news is that 2026 looks different. Reinsurance costs have eased, new carriers are writing business, and the state's own regulators are telling people to compare their options. This guide covers how Citizens works, who qualifies, what you pay, and how to get back to a private carrier.
What is Louisiana Citizens Property Insurance?
Louisiana Citizens Property Insurance Corporation is the state's insurer of last resort. It exists for property owners who cannot find coverage in the voluntary market from private insurance companies. It is not a competitor to private carriers. It is a backstop designed to make sure Louisiana homes and businesses can still be insured when the regular market will not take them.
The Louisiana Legislature created Citizens in 2003 by combining two older programs, and it still runs two main plans. The FAIR Plan covers properties statewide, while the Coastal Plan covers properties in designated coastal areas. Which plan you land in depends on your address, and that affects your rate.
Citizens is a nonprofit, but don't confuse that with "low cost." It is self-funded through premiums, and when a major storm produces more claims than it can pay, it can levy assessments. Those assessments show up as surcharges on policies across the state, including private ones. That is one reason a large Citizens book of business matters to every Louisiana homeowner, not just the people insured by it.
Here's what that means for you: Citizens does a job no one else will do, but it was never built to be a long-term home for your coverage.
Eligibility: Who Can Buy a Citizens Policy?
You can't just call up Citizens and buy a policy the way you would from a regular carrier. You apply through a licensed agent, and that agent typically has to show you made a real effort to find private coverage first. In general, that means you were declined by private insurers, or you could only get an offer priced well above what Citizens would charge.
The property itself also has to qualify. Citizens may deny coverage for homes that are not in "insurable condition." That can include:
- Severe neglect, such as rotted siding, a failing roof, or overgrown, abandoned conditions
- Existing unrepaired damage, like a tarp still on the roof from last season's storm
- Safety standard failures, including outdated wiring, missing handrails, or hazards that create a clear risk
One common mistake we see is a homeowner who files a roof claim, cashes the check, and puts off the repair. When that policy non-renews, they find out neither the private market nor Citizens wants to insure a house with known, unfixed damage. If you have open damage, get it repaired and documented before you shop.
Citizens also isn't automatic for vacant properties, short-term rentals, or homes under major renovation. Those situations may need specialty coverage, and an independent agent can tell you which route fits before you waste time on an application that won't go through.
Understanding Coverage and Costs
The biggest surprise for new Citizens policyholders is the price. For the 2026-2027 period, Citizens is permitted to charge rates that do not include the 10% surcharge, provided they are at least equal to the higher of the actuarially justified rate or the highest market rate. The rule exists so the state plan doesn't undercut private carriers and pull business away from them. Citizens publishes its current rate filings and plan-level changes so you can see how pricing is set.
That rule produces a gap you feel at every renewal. If private carriers in St. Tammany are charging a certain amount for a home like yours, Citizens has to come in above that. You aren't paying more because of a mistake. You're paying more because the law says the state plan has to cost more.
Rates do move. Effective January 1, 2026, Citizens put in place a 3.4 percent average increase for the statewide FAIR Plan and a 2.5 percent average decrease for the Coastal Plan. "Average" is the key word: your own change could be higher or lower depending on your home's age, construction, and location.
You have some control here. Homeowners who upgrade their roofs to the Fortified standard are eligible for a baseline premium reduction of 14.5 percent. If your roof is near the end of its life anyway, building to Fortified can pay you back on every renewal, and private carriers tend to view Fortified homes favorably too.
Citizens vs. Private Market Coverage
Price is only half the picture. A standard HO-3 policy from a private carrier typically includes protections that a Citizens policy may limit or leave out. Exact terms vary by carrier and policy form, so always read your declarations page, but this table shows the general differences.
| Feature | Typical Private HO-3 | Typical Citizens Policy |
|---|---|---|
| Pricing | Market rate, set by competition | Required to be at least 10% above market |
| Dwelling coverage | Open perils (covers all risks unless excluded) | May be more limited in scope |
| Personal property | Usually included | May be limited or require an add-on |
| Loss of use | Usually included | May be restricted |
| Personal liability | Usually included | May be limited or not included |
| Replacement cost | Commonly available | May pay actual cash value on some items |
| Endorsement options | Wide range available | Fewer choices |
| Assessment exposure | Indirect | Policyholders subject to surcharges after major events |
Liability is the gap that worries us most. If a guest slips on your back steps and sues, a policy without solid liability protection could leave you paying out of pocket. Some Citizens policyholders buy a separate liability policy or umbrella to fill that hole, which adds yet another cost to an already pricier setup.
The Depopulation Program: Getting Back to the Private Market
Citizens doesn't want to keep your policy forever, and the state doesn't want it to either. Every year, the depopulation program lets approved private insurers review Citizens policies and offer to take them over. Each policy moved out shrinks the state's total risk exposure, which lowers the chance of statewide assessments after a big storm.
The process runs on an annual cycle. Citizens has scheduled Round 25 of depopulation with a policy assumption date of April 1, 2027. In broad terms, it works like this:
- Private carriers apply to participate and are approved by the Louisiana Department of Insurance.
- Approved carriers review Citizens policy data and select the properties they want to assume.
- Selected policyholders receive a notice explaining the offer, the new carrier, and the terms.
- Policyholders decide whether to accept the move or opt out and stay with Citizens.
- Accepted policies transfer to the private carrier on the assumption date.
The full depopulation process for Round 25 lays out the deadlines and opt-out rules if you want the details.
Commercial accounts are seeing big shifts right now. The Property Insurance Company of America was approved in September 2026 to assume nearly all 4,764 commercial Citizens policies at rates 15 to 40 percent lower than the state plan. Commercial policyholders who stay are also scheduled for a 14 percent rate decrease in November 2026, tied to a 16 percent drop in global reinsurance costs.
One thing to keep in mind: a depopulation offer is not automatically your strongest option. Compare the new carrier's coverage, deductibles, and financial standing against what else is available before you accept.
Common Questions About Louisiana Home Insurance
Why is my Citizens premium so high? For the 2026-2027 period, Citizens is permitted to charge rates that do not include the 10% surcharge, provided they are at least equal to the higher of the actuarially justified rate or the highest market rate. Your home's age, roof condition, and location in the FAIR or Coastal Plan also affect the price.
Can I switch to a private company at any time? Yes. You aren't locked into Citizens, and you can move to a private carrier whenever one offers you coverage. Ask about any refund of unearned premium when you cancel.
Will I get a depopulation offer automatically? Not necessarily. Private carriers choose which policies they want, so many homeowners never get an offer and need to shop on their own.
Does a Fortified roof really lower my premium? It can. Citizens policyholders who upgrade to the Fortified standard are eligible for a baseline premium reduction of 14.5 percent, and private carriers may offer their own credits.
Are Louisiana home insurance rates starting to come down? There are encouraging signs. Legal changes like the 2025 modified comparative fault reform, which bars recovery for plaintiffs more than 50 percent at fault, are credited with reducing litigation costs, and the Insurance Commissioner has urged policyholders to shop around to take advantage of rate decreases.
Can Citizens refuse to insure my house?
Yes, if the home isn't in insurable condition. Unrepaired damage, severe neglect, or safety hazards can all lead to a denial.
Making the Right Choice for Your Property
Citizens serves an important purpose, and nobody should feel embarrassed about having a policy there. But it's built to cost more and often cover less, so the smart move is to treat it as a bridge. Keep your home in good repair, look hard at a Fortified roof, watch for depopulation notices, and shop your coverage every renewal. The market for Louisiana Citizens homeowners insurance and its private alternatives is shifting quickly in 2026, and the homeowners who pay attention are the ones who get out first.
That's where an independent agent earns their keep. Aubert Insurance Agency has been insuring families in Covington and Slidell since 1910, through more storms and market swings than we can count. Because we're independent, we compare multiple carriers in one place, and we take the time to explain what your policy actually covers, including the exclusions most people never read until a claim is denied.
If you're sitting on a Citizens policy and wondering whether a private carrier will take you back, let's find out. Start a Quote with Kyle Beerbohm today, and we'll shop the market for coverage that fits your home and your budget.
About the Author
Kyle Beerbohm
President
We've been independent since 1910, and four generations of local ownership have kept us that way. We're one of the oldest agencies in St. Tammany Parish and the fourth oldest business in the City of Covington. I treat that history as a responsibility rather than a plaque on the wall. My job is to keep us answering to the families and business owners who walk through our doors, and to keep serving this parish for another hundred years.
