Louisiana Citizens Property Insurance is a state-created nonprofit that sells property insurance to Louisiana homeowners and businesses who cannot get coverage through private insurers. It is the state’s insurer of last resort, built to fill the gap in hurricane-exposed areas where private carriers have pulled back or refused to write policies. Every property insurer licensed in Louisiana is required to participate in funding it, which is why its finances touch nearly every policyholder in the state, not just its own customers.1Justia. Louisiana Code 22-2293 – Creation of the Louisiana Citizens Property Insurance Corporation
What It Is and Who It’s For
Louisiana Citizens operates exclusively as a residual market mechanism for residential and commercial property applicants who are entitled to coverage but cannot find it on the private market.2Louisiana State Legislature. Louisiana Code RS 22-2297 – Powers and Duties of Louisiana Citizens Property Insurance Corporation You don’t apply to Citizens directly. A licensed insurance agent shops the private market first, and only when coverage isn’t available or affordable does Citizens become the fallback.
Where your property sits determines which of the two Citizens programs you fall under. The dividing line is the Intracoastal Waterway.
- The Coastal Plan covers properties between the Gulf of Mexico and the Intracoastal Waterway. This is the highest-hurricane-exposure zone and the area private insurers are least willing to touch.
- The FAIR Plan (Fair Access to Insurance Requirements) covers properties above the Intracoastal Waterway, providing fire, extended coverage, and homeowners policies for inland properties that still can’t find private coverage.
Coverage terms and deductibles differ between the two, so which side of the waterway you’re on affects what you actually buy.
What a Policy Covers (and What It Doesn’t)
Louisiana Citizens writes HO2 (broad form homeowners), HO3 (special form homeowners), HO4 (renters), and HO6 (condo owners) policies, along with dwelling fire and commercial residential coverage. A standard homeowners policy covers the dwelling, other structures on the property, personal belongings, loss of use when the home becomes uninhabitable after a covered event, and personal liability. Covered perils generally include fire, windstorm, hail, and vandalism.
Flood is excluded from every Citizens policy.3Louisiana Citizens Property Insurance Corporation. Claims Frequently Asked Questions If you want protection against flood damage, you need a separate policy through the National Flood Insurance Program or a private flood insurer. The Louisiana Department of Insurance notes that flood coverage is most often required for property owners in high-risk areas who carry a mortgage through a federally regulated lender, but it recommends it even in moderate and low-risk zones.4Louisiana Department of Insurance. Flood
This matters after hurricanes, which produce both wind and water damage. Your Citizens policy pays for the wind portion. The flood portion is a separate claim under a separate policy, and without that second policy you absorb that half of the loss yourself.
Hurricane Deductibles
Citizens policies carry one deductible for hurricane damage and a different one for everything else. The hurricane deductible is a percentage of your dwelling coverage amount rather than a flat dollar figure. Under the Coastal Plan it is 5% of your insured dwelling value. Under the FAIR Plan it is either 2% or 5%.5Louisiana Citizens Property Insurance Corporation. Depopulation HO2 Coverage Comparison Round 20
On a home insured for $250,000 with a 5% hurricane deductible, you pay the first $12,500 of hurricane damage before the policy responds. A kitchen fire or a burst pipe falls under the standard flat-dollar deductible instead. Knowing the split before a storm matters for budgeting your out-of-pocket risk.
What You’ll Pay
By statute, Citizens rates must be actuarially sound, and the corporation collects an additional amount equal to the state premium tax to build its reserves.6Justia. Louisiana Revised Statutes 22-2303 – Rates, Rating Plans, and Rate Rules Applicable Premiums tend to run higher than comparable private-market coverage, and that is by design. If Citizens were cheaper than private insurers, people would choose it first instead of using it as a last resort.
Rates change periodically. The most recent personal lines rate change took effect January 1, 2026, and the most recent commercial lines rate change took effect November 1, 2025.7Louisiana Citizens Property Insurance Corporation. 01/01/2026 Personal Lines Rate Change Adjustments reflect updated loss projections and reinsurance costs and can move in either direction depending on storm activity.
Emergency Assessments on Every Louisiana Policyholder
When Citizens faces a deficit after a catastrophe that exceeds what it can recover through regular assessments on participating insurers, its governing board can levy emergency assessments under Louisiana Revised Statute 22:2307. These assessments are not limited to Citizens policyholders. They apply to virtually every property insurance policyholder in the state.8Louisiana Citizens Property Insurance Corporation. Emergency Assessments: Calculation, Collection and Remittance
The assessment is a uniform percentage applied to premiums for fire, allied lines, homeowners, and commercial multi-peril policies. The 2024 rate was 1.70%. Your insurer collects it at policy issuance or renewal, lists it as a separate line item on your declarations page, and remits it to Citizens. You cannot pay it in installments; it is due in full with the first billing installment, and refusing to pay can get your policy canceled for non-payment. The most recent round of emergency assessment collection ended effective April 1, 2025.
After a bad hurricane season, in other words, every Louisiana property insurance customer helps absorb the losses, whether or not they have ever bought a Citizens policy.
Getting Moved to a Private Insurer
Citizens actively works to shrink its own book of business through a depopulation program. Private insurers volunteer to assume blocks of Citizens policies in organized rounds, transferring those customers back into the private market.9Louisiana Citizens Property Insurance Corporation. Depopulation If your policy is selected, a private carrier takes over your coverage. The new policy may come with different terms, pricing, or coverage options than the Citizens policy it replaces, so read it carefully before the switch takes effect.
Using FEMA Alongside a Citizens Policy
Carrying a Citizens policy does not disqualify you from FEMA disaster assistance, but FEMA will not duplicate benefits already paid by insurance. If your insurance payout falls short of your total disaster-caused needs, FEMA may cover the gap.10FEMA.gov. Eligibility Criteria for FEMA Assistance You must disclose all insurance you carry when you apply, and filing an insurance claim first is typically required before FEMA steps in. For hurricane damage, the practical point is that FEMA assistance is often where flood losses land when your Citizens wind coverage can’t help.