Higgins Introduces Bill that Aims to Prevent Insurance Coverage Loss for Louisianans After Disasters

Louisiana / Washington D.C. – Congressman Clay Higgins of Louisiana announced on September 28, 2022, that he will introduce legislation to maintain insurance availability for Louisiana homeowners and encourage insurers to continue coverage options after a catastrophic disaster.

Eight insurance firms with Louisiana consumers have failed during the 2020 hurricane season, while at least 12 more have withdrawn from the state.

According to Congressman Higgins, his bill would alter the United States tax code to allow insurers to deduct the cost of providing homeowners insurance and policy payouts following a federally declared disaster. The tax provision would go into effect if a major disaster proclamation was issued, and it would be limited to insurance in the affected area. To qualify, the insurer must maintain policies within the declared disaster zone.

The bill’s full text can be read by following this link.

Representative Higgins issued the following statement:

“My bill would reform existing tax code, restructuring the tax burden to encourage insurance availability for Louisiana. After recent disasters, we’ve witnessed insurers abandon the state and terminate policies. This has left Louisiana families with limited insurance options, driving up costs and destroying financial security for scores of thousands of Louisiana citizens. My bill would incentivize property insurance providers to remain in the state after a major disaster. Further, because insurance is largely regulated at the state level, I am hopeful that our bill can also serve as a model for similar legislation in the Louisiana State Legislature. Insurance companies fleeing Louisiana after a rough hurricane season has been a problem for decades. This bill, enhanced by companion legislation out of Baton Rouge, will finally address the property insurance nightmare in Louisiana, without growing the government or adding regulations.”