Wind Mitigation Certification
Since the 2007 Legislative Session, admitted insurance carriers in Louisiana have been required to offer premium discounts for properties’ compliance with the building code and for installation of mitigation measures that reduce wind-related losses.
Your home may already have many of these qualifying construction techniques, which include roof bracing, secondary water barriers, opening protection, and more. Discounts will be applied once an approved Wind Mitigation Surveyor completes a Louisiana Hurricane Loss Mitigation Survey Form and submits to your insurer.
Examples of recent discounts in Southeast Louisiana include:
|Carrier||Original Premium||Discount||Discount Percentage|
As required by Act 1 of the 2023 Legislative Session, admitted insurance carriers in Louisiana must offer discounts to insureds who build or retrofit structures to FORTIFIED home or commercial standards, created by the Insurance Institute for Business and Home Safety (IBHS).
FORTIFIED is a construction method, backed by decades of research and embraced by the insurance industry, that protects homes and commercial structures against wind, hail, and hurricane damage. For example, FORTIFIED requires ring-shank nails, installed in an enhanced pattern, to help keep the roof deck attached to your home.
According to the Department of Insurance, as of November 2023, the average discount being offered by the top six carriers for standard FORTIFIED roofs in Louisiana is 16%. When considering all FORTIFIED classes, including FORTIFIED Silver and Gold, the average discount is 23%.
Please check with your carrier on discounts offered. Previous examples of discounts provided by certain insurers, according to fortifiedhome.org, are:
Examples of discounts provided by certain insurers, according to fortifiedhome.org, are:
|Carrier Name||American National||Amica Mutual||Anpac Louisiana||Gulf States||Hartford||Occidental||State Farm||USAA|
Tax Deductions and Exclusions
For voluntarily retrofitting your residential property to bring it into compliance with the building code, you can receive a “construction code retrofitting deduction,” apply to your individual income tax. Capped at $5,000 per structure, deductions are equal to 50% of the cost paid for the retrofit.
The taxpayer must claim the homestead exemption for the home being retrofitted and the home cannot be a rental property. For more information, consult Department of Revenue’s bulletin at gnoinc.org/constructiondeduction.
Also, purchases of storm shutter devices for hurricane protection are excluded from state sales and use tax.
Insure Louisiana Incentive Program
The Insure Louisiana Incentive Program was enacted during the 2022 Legislative Session to stabilize the residential and commercial market by encouraging additional property insurers to write coverage, increase competitive pressure on insurance rates, and reduce the volume of business written by the Louisiana Citizens Property Insurance Corporation.
The program was funded with $45M in the 2023 Special Session and $10M in the 2023 Regular Session. Eight new companies are writing in Louisiana because of the program, and a second call for additional insurers has been opened.
Already, from April to the end of August, 32,426 new policies have been written, and 15,170 new policies have been written in the Greater New Orleans region. In total, $99M in new premium has been written statewide, and $55M in our region. From $55M in grants, $220M in premiums should ultimately be written statewide, within 24 months of awards.
The top five parishes for new policies are Jefferson, Terrebonne, Orleans, St. Tammany, and Lafayette. Property owners in all parishes are encouraged to contact their agents for new quotes from participating companies, which include:
- Allied Trust Insurance Company
- Cajun Underwriters Reciprocal Exchange (CURE)
- Constitution Insurance Company
- Elevate Reciprocal Exchange
- Gulf States Insurance Company
- SafePoint Insurance Company
- SafePort Insurance Company
- SureChoice Underwriters Reciprocal Exchange (SURE)
Louisiana FORTIFIED Homes Program
The Louisiana Fortify Homes Program will provide grants up to $10,000 for homeowners to upgrade their roofs to the FORTIFIED standards. The grant program was funded at $30M during the 2023 Regular Session. The program will help Louisiana homeowners strengthen roofs of their primary residences to better withstand severe weather, while receiving discounts on premiums.
The first two rounds of the grant program, open to Citizens policyholders only, occurred on October 2 and October 16, and available funding was quickly claimed. The third round, open to policyholders of all insurers, occurred on November 6, and the fourth round followed on November 27. 3,000 grants have now been issued; grantees’ homes are now being evaluated to confirm eligibility and ensure structural integrity prior to construction.
Homeowners must visit ldi.la.gov/fortifyhomes to learn more about the program and sign-up for updates on future grant rounds. For all rounds, applications will be submitted online and accepted on a first-come, first-served basis. Those interested in applying are encouraged to create an online profile in advance.