Hurricane-Prone Louisiana Has an Insurance Problem Too: Report 

California and Florida aren’t the only states with an insurance crisis. 

In the wake of $23 billion in damage from four hurricanes in 2020 and 2021, Louisiana has an insurance crisis that’s damaging its economy and driving residents away, Bloomberg reported Monday. 

Insurers in Louisiana are either receding from the state or hiking rates, the outlet reported. The average cost for home insurance there is $5,353 annually, three times as much as the national average, Bloomberg said, citing data from Insurify, an insurance comparison-shopping website. That makes it the third most expensive state in the U.S. for property insurance.

“We’re experiencing a crisis in the insurance availability in our state,” James Donelon, commissioner for the state’s Department of Insurance, told Bloomberg, noting it extends to car insurance as well as property insurance. “It’s certainly causing some people to turn in the keys and give up their homes and to shut the doors on their businesses.”

More than 8% of Louisianans told the U.S. Census Bureau that they were displaced by a natural disaster last year, compared to a nationwide average of 1.6%, Bloomberg reported. By percentage, Louisiana’s population fell more than all but two other states between 2021 and 2022, according to Census data. 

Twelve insurers that sell homeowners coverage in Louisiana were declared insolvent between July 2021 and February 2022, Bloomberg reported, citing the Insurance Information Institute.

“Climate change is driving not only direct losses but also repricing of insurance, mortgage and even utility rates,” Jesse Keenan, a professor of sustainable real estate at Tulane University, told Bloomberg.