this post was submitted on 31 Mar 2024
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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.

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.

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[–] Addition1291@lemmy.world 43 points 7 months ago (12 children)

Insurance rates are the true Canary of Collapse. If the money men have calculated that certain areas are going to quickly become unlivable, then people should listen.

Of course it's not trivial to just pack up your life and move but it's about to become super necessary, unfortunately.

[–] this_1_is_mine@lemmy.world 8 points 7 months ago (11 children)

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.?

[–] Addition1291@lemmy.world 7 points 7 months 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.

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