NEW ORLEANS (WVUE) – As the insurance crisis persists, many people in south Louisiana are feeling the strain of rising premiums.

Sandy Sporl, who lives in the New Orleans area, says her property insurance costs have surged.

“Oh, definitely, you know it’s almost double than the last couple of years,” she said.

INSURIFY, a company that monitors insurance rates, says people across the U.S. should expect to pay more for property insurance coverage this year.

“So, we project rates nationally will raise by about 8%, and we do expect every state to increase somewhat, but it does really range,” said Julia Taliesin, an Insurify data analyst.

Premiums will vary, but Insurify projects the annual cost of property insurance in Louisiana will reach $13,937 by the end of the year.

“For example, we project just a 2% increase in Massachusetts versus unfortunately a 27% increase in Louisiana,” Taliesin said.

Several factors are taken into account to calculate the projections.

“To compare home insurance in every state, we used specific coverage and like home-type details that the premium then estimates. So this includes coverage limits of $400,000 for dwelling and $300,000 in liability with just a $1,000 deductible,” said Taliesin. “And I do want to acknowledge that some policies have a much higher deductible, or a much lower dwelling coverage.”

Policy non-renewals are also on the rise in Louisiana.

“The percent change between the non-renewal rate in 2018, which is when the study started, and the non-renewal rate in 2023, which was the last year, is an increase of 267%, but the actual non-renewal rate is not that high,” Taliesin explained.

Insurify states that the non-renewal rate data originates from a December 2024 U.S. Senate Budget Committee report.

“So, the non-renewal rate in Louisiana in 2018 was about half of a percent — 0.49% — whereas in 2023 it was 1.8%. So, it’s much lower, but it is a significant enough increase that’s kind of why we call that out,” Taliesin said.

Three parishes had the highest non-renewal rates in the state.

“So the Louisiana parishes that had the highest non-renewal rates are all along the southern Gulf Coast. There’s Vermilion Parish, Lafourche Parish and Saint Charles. Those were the top three,” Taliesin said.

According to Insurify, Florida, Louisiana, and Hawaii are the states where non-renewal rates are rising the fastest.

Climate is also a factor in increasing insurance costs.

“So, climate change continues to have a big impact on the industry and that’s definitely true in Louisiana and the Gulf states. So it was expected that home insurers would be continuing to raise rates to align with risk in 2025,” Taliesin said.

The cost of building materials is another contributor to higher premiums.

“Unfortunately, it’s across the board with all the storms that we’re having and the cost to refurbish and reconstruct once a storm goes through and you have any problems it’s just inflation costs,” Sporl said.

Insurify says its home insurance projections and premiums “reflect a combination of internal data and data provided by Quadrant Information Services. Our internal data comes from our proprietary database of real home insurance quotes.”

To read the report: In Vulnerable Areas, Climate Risk Drives Home Insurance Non-Renewals, Not Just Rate Hikes | Insurify

FOX 8 reached out to the Louisiana Department of Insurance for a response to Insurify’s report but did not hear back.

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