The home insurance market is crumbling in New Orleans, leaving Alfredo Herrera with few options for coverage — and skyrocketing insurance premiums.
Herrera, 35, works in finance for a local bank. He bought his 900-square-foot home in New Orleans’ Mid-City neighborhood in 2020 for $270,000, and lives there with his partner.
In 2022, he paid $1,600 a year for home insurance. But last July, his insurer canceled his coverage, saying it was leaving Louisiana.
In the past, acquiring or keeping homeowners’ insurance didn’t present much of a problem.
But as climate change increases the frequency and severity of extreme weather, insurers — especially those in areas most impacted by floods and fires — are raising their premiums, or pulling out altogether, impacting the affordability and availability of home and fire insurance.
These folks are losing their insurance. But even those of us who live in safe areas with little to no history or indicators of disaster are still seeing rates skyrocket. Mine were raised 30% this year and I have no risk of flooding or wildfire, and very low risk of storm or earthquake damage. Crime in my neighborhood is the lowest in the region (kind of surprising considering it’s very working class mixed with lots of low income housing), and has no history of damage to the property at all. But still, 30% hike with no reason given. My car insurance jumped 25% too.
Start an insurance company.