Louisiana Department of Insurance Reviews Homeowners Policies For Mayor Hunter

Mayor Nic Hunter of Lake Charles contacted Commissioner Jim Donelon to discuss the pending termination of the Mandatory Evacuation Order for Calcasieu Parish and its implications for coverage of Additional Living Expenses (ALE) for residents of that parish. After advising Mayor Hunter that every policy can contain different coverages for ALE, Donelon offered to have the policy forms for State Farm Insurance Company, Allstate Insurance, Louisiana Farm Bureau Group, United Services Automobile Association (USAA), and Insurance Services Offices (ISO) reviewed for ALE coverage. ISO drafts and submits policy forms for approval in Louisiana for 77 homeowner insurers.

At Mayor Hunter’s request Commissioner Donelon participated in a conference call with the members of the Lake Charles City Council to advise them of his findings relative to ALE coverage. The review found that when policyholders were ordered out of their homes by a civil authority, such as the Mandatory Evacuation Order issued for Calcasieu Parish, all of the policy forms reviewed contained the same limitation of fourteen (14) days of coverage for such evacuations. ALE coverage for homes which were rendered uninhabitable by physical damage from Hurricane Laura will be subject to the terms of their policies but generally provide coverage of one to two years maximum in such circumstances.

In light of the proposed termination of the Mandatory Evacuation Order by Calcasieu Parish, Donelon further advised the City Council that should any of their constituents have questions about their ALE coverage or complaints about the handling of their claims they should reach out to the Louisiana Department of Insurance (LDI) at 1-800-259-5300 or at www.ldi.la.gov. Donelon stands ready to meet with any of the public officials in the impacted areas of our state to discuss any insurance questions or concerns they may have in the aftermath of the devastating effects of Hurricane Laura.

“Policyholders are entitled to assistance for additional living expenses when their home is uninhabitable as well as when forced to evacuate by their civil authority. If policyholders have questions or concerns, I urge them to contact us so that we can be of assistance,” said Donelon