More Louisiana homeowners left in the lurch as insurer UPC pulls out of state

BATON ROUGE, La. (WVUE) - About 33,000 more Louisiana homeowners are about to be notified that they must find new property insurance, as troubled carrier United Property & Casualty announced plans Wednesday (Dec. 7) to pull out of the state.

Insurance Commissioner Jim Donelon’s office issued a statement confirming the news. It is believed to be at least the 10th insurance company to stop writing policies in Louisiana this year.

Florida-based UPC is sending written notices of non-renewal to about 33,000 policyholders whose current policies are scheduled to end in 2023. Those notices will be delivered at least 30 days before those customers’ coverage end date.

Another 3,000 UPC customers, whose policies were to expire between Nov. 26-Dec. 31, will receive an invoice and an opportunity for extended coverage, followed by a notice of non-renewal at least 30 days before their extended coverage end date.

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UPC’s financial rating was downgraded in August. At the time, Donelon said the company’s new rating still was good enough for Fannie Mae-backed mortgages, so not all of UPC’s Louisiana policyholders would be initially affected. But those with mortgages backed by Freddie Mac were being force-placed by the lender into much more expensive coverage.

Wednesday’s announcement, however, left all the company’s Louisiana policyholders needing new coverage.

“The Florida Office of Insurance Regulation found that UPC’s plan for exiting the market provides a reasonable basis to support an orderly and solvent runoff of its policies,” Donelon’s office said in a statement. “The LDI (Louisiana Department of Insurance) encourages UPC policyholders to closely monitor their mail for any communication from the company.

“UPC will continue handling outstanding claims for its policyholders. Policyholders who feel their claim has not been properly resolved by their insurer may call the LDI at (800) 259-5300 and file a complaint.”

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