Louisiana Homeowners to Get Refunds from Liberty Mutual
NEW ORLEANS — Thousands of Louisiana homeowners holding Liberty Mutual policies are slated to receive refunds. State Insurance Commissioner Tim Temple announced that the insurance provider had been overcharging customers over the past four years.
An estimated 138,000 policyholders are expected to benefit from this refund. The issue came to light in February when the Louisiana Department of Insurance (LDI) received a consumer complaint regarding a Louisiana Citizens assessment on a Liberty Mutual renewal notice.
Upon investigation, the LDI discovered that Liberty Mutual had failed to update the assessment percentage since 2021 due to an error. According to Temple, the overcharging was related to the “Louisiana Citizens Property Insurance Emergency Assessment.” This resulted in approximately $4 million in overcharges.
“I have spoken with Liberty Mutual about the issue, and they told me they corrected the error and will send refunds to all active and inactive policyholders that were impacted,” Commissioner Temple stated. “The LDI will monitor the company repayments to ensure policyholders receive all the funds they are due.”
The assessment was initially implemented to help address debts from claims following Hurricanes Katrina and Rita in 2005. Liberty Mutual has committed to refunding all active and inactive policyholders affected by the error. Temple clarified that the issue was isolated to Liberty Mutual and did not impact other insurance providers.
