Louisiana’s fortified roof grant program can’t keep up with demand from homeowners

Nearly three years since the start of a state program to dole out grants for homeowners to get stronger roofs, the number of people seeking help is far outstripping the money available.

The state's fortified roof grant program has emerged as a popular solution to rising homeowners' insurance costs, which have culminated in a crisis that is threatening people's ability to remain in their homes. But the chances of getting a fortified roof grant through a state lottery program remain unfavorable, state data shows.

Only about 20% of those who registered in lotteries received grants, according to Louisiana Department of Insurance data. State officials also doled out several hundred more grants through partnerships with nonprofits and officials in Jefferson Parish.

The numbers suggest that while Louisiana has rapidly moved to fortify homes amid worsening hurricanes, tens of thousands of residents are still looking for help putting on stronger roofs.

Since moving to a lottery system in 2024, Louisiana has allocated about 7,000 fortified roofs through the grant program, which gives homeowners $10,000 to put a stronger roof on their home. The process includes a third-party verification and generally leads to lower insurance premiums.

More than 34,000 people have signed up in hopes of landing one of those grants. Before 2024, the state used a first-come, first-served system instead of the lottery, meaning registration data is not available for the roughly 3,000 grants allocated through that system.

"I wish we could fund every Louisiana homeowner who has applied for a grant, but with so many people living and working in our coastal zone, that just isn't feasible for the state to take on," said Louisiana Insurance Commissioner Tim Temple in a statement. "At the same time, the demand is a good signal of the growing understanding that we must build stronger to make Louisiana more insurable."

The state has finalized nearly 4,200 fortified roofs through the program, and another nearly 7,000 people have gotten a fortified roof without the grant, according to data from Smart Home America.

People who miss out on the grant can still get help putting a fortified roof on their home if they don't want to wait for a later round. A recent law passed by state Sen. Kirk Talbot, R-River Ridge, gives people a tax credit of up to $10,000 in exchange for putting a fortified roof. That tax break, as well as a separate deduction, require homeowners to foot the bill on the front end.

Many homeowners have turned to the grant program in hopes of cutting their insurance costs. After a series of hurricanes in 2020 and 2021, a dozen insurers doing business in Louisiana went belly-up, sending thousands of people to the insurer of last resort. Climate change and inflation caused turmoil in the reinsurance market, which helps set prices, and premiums for Louisianans soared.

Temple's office is working on a new rule that would push insurers to offer a benchmark level of discount in exchange for having a fortified roof.

Cracks emerge

Still, the data indicates that the state's program is not comprehensive enough to help all who need it. Many who win the lottery still aren't able to afford the out-of-pocket costs for a fortified roof, which include any costs over $10,000, plus evaluators and other fees. The state Legislature sent several rounds of money to the program before directing certain insurance fees to help pay for it every year.

Since the program began, more than 2,500 people have dropped out after winning a grant, according to LDI data.

In response to people falling through the cracks, the state partnered with nonprofits that find low-to-moderate income homeowners and help pay for those out-of-pocket costs. The "pilot" round set aside 200 grants.

John Ford, spokesperson for the Department of Insurance, said the agency is interested in pursuing similar rounds in the future and is sending flyers to local governments encouraging them to partner with the state to find gap funding. The agency partnered with Jefferson Parish to deliver roofs to homes in the process of being elevated against flood risk, as well as others.

William Stoudt, head of Rebuilding Together New Orleans, which partnered with the state to help cover costs for lower-income homeowners, said the gap is significant: Many of the roofs he helps put on cost $16,000 to $17,000, far above the $10,000 grant.

Stoudt is pushing for a sliding scale, where people making less qualify for a higher grant amount.

"It's going to get harder and harder to do," Stoudt said. "The roofs that were easier and cheaper to fortify are getting done more quickly. ... We can't just do it the way we were doing it two years ago and expect the same results."

Temple said his office isn't currently considering increasing the amount of grants based on income. He said the agency is prioritizing finding funds to cover the gap, including with local governments.

Trial and error

The state has tested various ways to boost participation and deliver more roofs. For one round last year, for instance, the Insurance Department told participants they didn't have to register if they had already registered for a previous round.

But the round had an unusual number of dropouts, likely because people who registered months or years ago no longer needed a roof after being selected.

Ford, of LDI, said the rate of dropouts has remained relatively steady when excluding the 2025 round. And the most recent round saw significant interest from registrants — about 10,400 people sought 2,000 available grants. Most of those are still pending.

SBP, a disaster recovery nonprofit, was among the nonprofits who partnered with the Insurance Department to try to help those who couldn't afford to participate. The nonprofit completed 14 roofs under the pilot and is finalizing a deal to complete 20 more by this summer.

Keith McCulloch, SBP's chief financial officer, said committing funding for multiple years could allow the program to scale up.

"We've also seen that even with a $10,000 grant, the remaining project costs can be an insurmountable barrier for LMI households," McCulloch said. "Exploring tiered award amounts or blended funding approaches would significantly improve participation and completion rates."