Louisiana Lawmakers Fail to Pass Bills Aimed at Lowering Homeowner Insurance Costs
With just two days left in the 2025 legislative session, Louisiana lawmakers have shelved the only two insurance proposals that critics say would have directly helped homeowners struggling with skyrocketing insurance rates. Senate Bill 235 and House Bill 356 garnered significant public interest as residents await state action on coverage costs. Louisiana’s average homeowner insurance premiums are the eighth highest in the nation, according to Insure.com.
Senate Bill 235, sponsored by Sen. Royce Duplessis, D-New Orleans, proposed an annual tax credit of up to $2,000 for homeowner’s insurance payments for those with incomes up to 200% of the federal poverty level. The bill narrowly passed the Senate but failed in the House by a 49-52 vote, with Republicans opposing it.
House Bill 356, introduced by Rep. Jacob Braud, R-Belle Chasse, would have allowed homeowners without mortgages to purchase “stated value” policies, covering homes for a lesser amount chosen by the homeowner. The bill passed the House 79-20 but was significantly watered down in the Senate, changing the requirement for insurers to offer stated value policies from “shall” to “may.”
Rep. Mike Bayham, R-Chalmette, expressed disappointment over the bills’ failure, stating that lawmakers were elected to tackle the insurance crisis. “Everything else seems to be, ‘Let’s pass something and just hope the rates get down,'” Bayham said.
The fate of Braud’s bill remains uncertain as it heads to a conference committee. Critics argue that the watered-down version won’t address the underlying issues of high insurance rates and may encourage homeowners to be underinsured.
“It encourages you to gamble in a way that is unsustainable and could lead to you losing your home,” said Andreanecia Morris, president of the Greater New Orleans Housing Alliance. “We learned those lessons after Katrina.”
