created by SchrodingersMinou on 03/02/2025 at 22:08 UTC
113 upvotes, 22 top-level comments (showing 22)
Comment by KingCarnivore at 03/02/2025 at 22:28 UTC
128 upvotes, 3 direct replies
If it ain’t skyrocketing now what’s it doin?
Comment by dawn_ofthe_dead at 03/02/2025 at 23:09 UTC
57 upvotes, 1 direct replies
Oh, good. I was worried I wasn’t paying enough for insurance. Hopefully I can pay twice as much for the privilege of having the policy cancelled on a whim.
Comment by jackasspenguin at 03/02/2025 at 23:16 UTC
53 upvotes, 3 direct replies
Should I just cancel insurance now and pay that money into a savings account for repairs? At what point is it not worth it anymore?
Comment by aibohphobia96 at 03/02/2025 at 23:21 UTC
32 upvotes, 0 direct replies
The only person surprised by that development is our aggressively stupid governor.
Comment by countfizix at 03/02/2025 at 23:47 UTC
22 upvotes, 2 direct replies
We could work on rebuilding the entire marshland and reverse climate change to the point the gulf is 70-80 instead of 80-90 in summer, or we could legally prohibit insurance companies from extrapolating future events from current trends if those trends are considered too woke. Guess which will be tried.
Comment by Appropriate-Tap-3938 at 03/02/2025 at 22:30 UTC
58 upvotes, 1 direct replies
They need to raise the price of homestead exemption when they keep raising the cost of our homes or what they say our homes are worth as our neighborhoods deteriorate around us and our homes get beaten to death by the weather yet keep rising by a hundred grand in value every year on the assessment.
Comment by Slasher1738 at 03/02/2025 at 22:19 UTC
17 upvotes, 1 direct replies
Temple is useless
Comment by MFZilla at 03/02/2025 at 23:16 UTC
15 upvotes, 0 direct replies
I mean, we been knew.
The problem is that every elected official in Baton Rouge is dead set on ignoring this problem as long as the oil and gas industry keeps cutting them checks for them and they can say the free market as if it's a magic trick that solves all problems.
The fallout from this is only beginning sadly.
Comment by GrovelingPeasant at 04/02/2025 at 01:16 UTC*
13 upvotes, 0 direct replies
Why on Earth are these companies so underleveraged that Ida priced them out of the market, but they were able to survive Katrina? Is it because the price of building materials is so much higher?
Between the gulf coast and the fires out west, I'm guessing housing insurance winds up quasi-nationalized like flood insurance in the next few years.
Comment by SchrodingersMinou at 03/02/2025 at 22:09 UTC
11 upvotes, 1 direct replies
New Orleans will face some of the biggest increases in property insurance costs in the nation because of increased risk from natural disasters, according to a new study that raises more alarms about the state’s insurance market.
An analysis released Monday by the First Street Foundation[1] projects that increased risk from disasters alone will lead to a 200% increase in property insurance rates through 2055 in New Orleans, a bigger jump than everywhere but three Florida cities. When combined with inflation and other factors that put upward pressure on prices, premiums here will “skyrocket” over the next decade, the report said.
1: https://firststreet.org/research-library/property-prices-in-peril
Louisiana’s insurance crisis came on the heels of several devastating hurricanes and led to the collapse of 12 insurers in the state. Combined with turmoil in the global reinsurance market, escalating rates have stressed communities in the southern part of the state.
The report by First Street, a New York-based nonprofit, projects that areas like Louisiana with the biggest insurance increases could see declining property values as a result. First Street produces climate models used by federal government agencies and lenders.
“Climate change is no longer a theoretical concern; it is a measurable force reshaping real estate markets and regional economies across the United States,” said Jeremy Porter, head of climate implications research at First Street. “Our findings highlight the urgent need to understand how rising insurance costs and population movements are transforming the economic geography of the nation.”
The reinsurance market, composed of companies around the globe that decide in part how much homeowners in Louisiana pay, has struggled to catch up to rising natural disaster risk because of climate change. In particular, modelers are trying to understand the risks of the most severe types of disasters, such as major hurricanes hitting a densely populated city head-on, like Miami or New Orleans.
The report found that climate risk is reshaping the nation’s $50 trillion real estate market, with insurance costs rising faster than mortgage payments. The phenomenon may help drive people to move to less risky places. By 2055, the report projects huge swathes of the U.S. may see property values decline because of rising climate risk, a dynamic that has drawn the attention of Congress.
Louisiana lawmakers and Republican Insurance Commissioner Tim Temple have ushered in a series of changes to make it easier for insurers to drop policyholders and raise rates, saying the changes should allow more companies to enter the market. They expect the resulting competition will bring down rates.
But it hasn’t yet produced meaningful lower rates. Meanwhile, homeowners, businesses and even churches continue to struggle to pay elevated premiums.
Temple has said he remains confident the strategy will work, though it may take time.
Insurance is expected to be a central topic of the legislative session this spring, though it’s not yet clear what lawmakers will agree on. Republican Gov. Jeff Landry said in a December interview that he’s frustrated the series of bills pushed by Temple, which Landry signed last year, haven’t shown results. Landry expressed an openness to a federal solution, and said he wants to see more consumer-friendly bills, like requiring insurers give discounts for fortified roofs.
Comment by petit_cochon at 04/02/2025 at 00:50 UTC
16 upvotes, 0 direct replies
I can't afford 200%. Guess it's time to make an exit plan.
Comment by noladawg16 at 04/02/2025 at 01:46 UTC
7 upvotes, 0 direct replies
I think at some point the only solution for homeowners insurance is going to be some sort of federal thing like flood
Comment by BugNo5289 at 04/02/2025 at 01:17 UTC
6 upvotes, 0 direct replies
Well, bye guys.
Comment by OptimisticPlatypus at 04/02/2025 at 03:06 UTC
6 upvotes, 0 direct replies
I mean it’s already happening further south along the coast. No one wants to buy the houses for sale. Prices are dropping. Some people buying are paying cash for the cheaper properties and just going without insurance.
Comment by Sovngarten at 04/02/2025 at 02:08 UTC
2 upvotes, 0 direct replies
Haha oh ok
Comment by No-Nebula-8718 at 04/02/2025 at 02:44 UTC
1 upvotes, 0 direct replies
Well. I guess they didn’t break me yet so they are going to give it another try!!!!
Comment by AccomplishedCicada60 at 04/02/2025 at 02:54 UTC
1 upvotes, 1 direct replies
Well what are costs doing now?!?!?? This is absurd, they are already high. I know two women that are selling homes because of how insurance is for them and one is in the Bywater!!!!!!
Comment by UptownMusic at 04/02/2025 at 02:58 UTC
1 upvotes, 1 direct replies
If insurance premiums go up, then purchase prices (property values) will go down along with property taxes. At some price, people will be willing to buy a house without insurance. So who will be left in 10 years?
Comment by xandrachantal at 04/02/2025 at 03:40 UTC
1 upvotes, 0 direct replies
So I should let the dream of homeship die or
Comment by parasyte_steve at 04/02/2025 at 04:01 UTC
1 upvotes, 0 direct replies
If it goes any higher we will be forced to leave. It's ridiculous.
Comment by Jedi_Cornbread at 04/02/2025 at 05:30 UTC
1 upvotes, 0 direct replies
It goes much higher I’m out. I won’t be able to sell because I’m going to be under it so far it won’t be worth it. I’m just going to say goodbye. The city is mean and the world ain’t much better.
Inflation and bullets? Not as bad as eggs and education.
Comment by Any_Strength4698 at 04/02/2025 at 02:20 UTC
0 upvotes, 2 direct replies
Self insurance is the logical future! FEMA often pays for uninsured losses which incentivizes bad behavior! I figure it only will take about 2-3 years of no losses and investing same amount to have a nice rebuilding fund! Fire is about the only likely 100% loss whereas flooding is mainly contents drywall and cabinets.