Guaranty association taking over claim payments for Americas Insurance Company

Lake Charles, LA (KPLC) - Claims through Americas Insurance Company, which provided homeowners insurance in Louisiana, will now be handled by a guaranty association, state Insurance Commissioner Jim Donelon announced Thursday.

U.S. News reported in November that Americas Insurance Company lost its accreditation in October. Americas has been licensed in Louisiana since 1991.

Donelon called the insurance company “financially troubled.”

He said the insurance company was placed into receivership in state district court in Baton Rouge last week, paving the way for the Louisiana Insurance Guaranty Association to take over claim payments, “ensuring that most policyholders with pending hurricane claims will get paid.”

Americas has approximately 24,000 policies and 13,000 Ida-related claims, and as of December 31, 2020, the insurer covered 1.31% of the Louisiana homeowners insurance market, according to Donelon.

Hurricanes Laura, Delta and Zeta cost insurers $10.6 billion in 2020, Donelon said. Hurricane Ida in 2021 is expected to cost insurers between $10 billion and $20 billion.

“Increasing labor and materials prices caused by the hurricanes as well as the recent spike in inflation, has put several insurers in danger of exhausting their reinsurance coverage and running out of money,” Donelon said in the news release.

Donelon said policyholders will be contacted by the court-appointed receiver or their insurance agent about claims.

“Until recently, Americas was domiciled in Washington, D.C., although essentially all its polices were written — and all its Ida-related claims originated — in Louisiana,” Donelon said. “The Commissioner of D.C.’s Department of Insurance, Securities and Banking worked closely with LDI and consented to the redomestication of Americas from D.C. back to Louisiana for the purpose of conducting this rehabilitation.”

Donelon said policyholders with questions should contact their insurer or insurance agent. Policyholders with questions about claims should contact LIGA at 225-277-7151 or www.laiga.org. Policyholders may also contact LDI at 800-259-5300 or www.ldi.la.gov for assistance.

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