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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[–] [email protected] 9 points 7 months ago (11 children)

It fucking sucks that here in CA, the entire state is losing insurers despite the fact that a huge chunk of the population lives in coastal areas with no danger of wildfires.

[–] [email protected] 1 points 7 months ago* (last edited 7 months ago) (3 children)

I would have thought California EQ was the peril scaring them all away. Very expensive to reinsure - most commercial property catasrophy models (RMS & AIR are the big ones) peg it as the second most risky North American peril after Florida Hurricane.

[–] [email protected] 1 points 7 months ago (2 children)

Then those models are fucking shit. San Francisco and Los Angeles are in no danger from wildfire.

[–] [email protected] 1 points 7 months ago* (last edited 7 months ago) (1 children)

EQ is earthquake. According to USGS, California faces a ~75% chance of a major earthquake in the next 100 years.

Have a quick google of "California quake risk" for a slew of in-depth (and somewhat scary) articles and research papers.

[–] [email protected] 1 points 7 months ago

Home insurance already doesn't cover earthquakes though. That's a separate insurance product, and companies could just stop offering it.

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