The home insurance market is crumbling. These owners are paying the price | CNN Business
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The home insurance market is crumbling in New Orleans, leaving Alfredo Herrera with few options for coverage — and skyrocketing insurance premiums.

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.

  • this_1_is_mine@lemmy.world
    2·
    1 year ago

    Yeah but just picking up your life and leaving isn’t always a possibility simply because you have so much investment already where you’re at. I mean how the hell do you get any of the money that you have invested in the home… it’s uninsurable who do you sell it to.?

    • michaelmrose@lemmy.worldEnglish
      1·
      1 year ago

      Herrera shopped around for a new plan, but he struggled to find a policy. Louisiana Citizens, the insurer of last resort for property owners in the state, was out of the question. It would have cost more than $7,000 annually. Herrera eventually found a policy with a small company in the state that charged him $4,930 annually — a 208% increase from what he paid in 2022.

      There were at least 2 options $5000–$7000. Sell to someone at a discount with the understanding that buyer is willing and able to bear at least $5000 in annual insurance costs. Do this before its actually uninsurable.

    • Yokozuna@lemmy.world
      1·
      1 year ago

      Property is selling very high in the parish I’m from adjacent to orleans parish. People have forgotten about Katrina and have faith in the levee system. Property is also selling high in New orleans as well unless it’s a dog shit area.

    • Addition1291@lemmy.world
      1·
      1 year ago

      You’re completely right. Many people are about to get totally financially ruined at a minimum. There’s going to be a lot of climate refugees from these areas who’ve lost everything.