What is a Louisiana Surplus Lines Insurance Company?

Did you receive a quote from a surplus lines home insurance company?

or do you currently have a surplus lines home insurance policy?

Here is some information on surplus lines insurance companies.



Surplus Lines Companies writing in Louisiana ARE NOT

  • licensed from the Louisiana Department of Insurance to write insurance in Louisiana
  • bound by rate and form regulations and are not strictly regulated to protect policyholders
  • protected by LIGA, the Louisiana Insurance Guarantee Fund
  • financially obligated to contribute to LIGA


Although a Surplus Lines Home Insurance Company is not licensed by the State of Louisiana, it is allowed to do business in Louisiana.

Surplus Lines Homeowners Insurance Companies are often referred to as non-admitted insurance companies.


What Risk is involved moving my Home Insurance to a Surplus Lines Company?


>If your insurance is with an admitted insurance company, your house is protected up to 500,000 with the Louisiana Insurance Guarantee Fund in case of insolvency.

>Subject to large rate increases at renewal

Since Surplus Lines insurance companies do not need approval to raise rates, you could receive a large rate increase at renewal if the insurance company is trying to leave the area

You would have no rate protection and not guaranteed a renewal offer


A surplus lines insurance company is offering low rates when the wind is not blowing and you buy a home insurance policy

During your policy term a tornado, hail storm or hurricane hits your area and at renewal the insurance company decides it no longer wants to write business in your zip code

The surplus lines insurance company can raise rates to 1,000% or issue a non-renewal “No longer writing in this area” and you are left to try to find home insurance after a major claim event

After a major claim event insurance companies stop writing new business

When this happens you are left with the Louisiana Citizens Fair Plan 


If you place your home insurance with a Surplus Lines company,  you have no protection if the company becomes insolvent or decides to leave the state after a major claim event.

Surplus Lines Insurance Companies were created to give policyholders another option when admitted insurance companies would not write the policy.

To learn more about Excess and Surplus Lines Insurance, the American Association of Managing General Agents

click here AAMGA

To better understand Surplus Lines Insurance, James Donelon, Louisiana commissioner of insurance, issued this Bulletin NO.2013-06

The document states the “diligent efforts to place the insurance with admitted carriers”. 

It also has a copy of the surplus lines affidavit needed for signature




The one major advantage is the company can more flexible when it comes to coverage and rate. If you are declined by every admitted insurance company, often a surplus lines insurance company will accept the risk.

Having a surplus lines insurance company write your homeowners policy does not indicate in any way the company can not pay their claims. 

You just need to consider the protection by LIGA if you are choosing between an admitted insurance company and a surplus lines policy.

If you have a surplus lines homeowners policy and would like a quote proposal with an admitted insurance company,