In a letter to the Louisiana Legislature, the Consumer Federation of America (CFA) opposes HB 611, which would repeal Louisiana’s “three year rule.” The three year rule provides important protection to consumers and repeal would worsen the current homeowners insurance crisis.

This three year rule bans insurance companies from raising deductibles, cancelling homeowners insurance policies, or not renewing homeowners insurance policies that have been in effect for three years (with exceptions if consumers don’t pay their premiums, commit fraud, file multiple claims, or if continuing the policy endangers the company’s solvency).

The three year rule provides helpful protections for consumers and better aligns insurance company interests with the safety and risk reduction goals of the state, local communities and homeowners themselves. Passing HB 611 would result in a purge of thousands of homeowners’ insurance polices, increasing costs for consumers and forcing many of them to go without coverage.