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.
I was under the impression that insurance was needed to secure a mortgage. I live in an area that doesn’t have these issues but my mortgage provider was very clear to me that home insurance was a requirement of the mortgage. Maybe it was the mortgage provider I used? I thought everyone had that requirement. I live in an area with just about zero natural disaster concern or climate change concern.
In most cases it is. And since the insurance company won’t insure the property basically becomes unsellable