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Reprice of Louisiana Homes Due to Insurance Increases?
Posted on 5/8/23 at 8:24 pm
Posted on 5/8/23 at 8:24 pm
quote:
NEW ORLEANS — Darlinda Cook fulfilled a dream three years ago when, in her mid-50s, she finally became a homeowner, buying a damaged, rotting house in New Orleans East and turning it into a cozy, loving home.
But now, she’s one of thousands of Louisiana homeowners being dragged to the financial brink by Louisiana’s spiraling insurance crisis. She just saw her monthly note rise from $800 to more than $1,400, all because of her homeowner’s insurance premium, and she’s left wondering if chasing her dream was a mistake.
quote:
“Even if my insurance would have went up just a little, I would have been able to understand that. But to go up at such an extreme, that was just too much,” she said, tears welling up. “A $1,400 house note? It’s not looking good for me.”
WWL
Details will of course differ amongst homeowners, but increases like this put a lot of pressure on affordability. Between wind and flood insurance increases and higher interest rates, prices won’t be skyrocketing anytime soon it’s safe to say.
What do you think will happen to South LA home prices in the next couple years?
9
Posted on 5/8/23 at 8:35 pm to SaintsTiger
That’s why I’m getting out now
Not to mention you’re always one storm away…
Not to mention you’re always one storm away…
Posted on 5/8/23 at 8:47 pm to PhillyTiger90
That really could happen to almost all of the Gulf coast and the southern 3rd of the east coast.
Houston or Tampa could get hit with 3 big storms in 6 years or whatever. It's a crap shoot if you live in those areas. You might be good for 40 years or very unlucky.
Houston or Tampa could get hit with 3 big storms in 6 years or whatever. It's a crap shoot if you live in those areas. You might be good for 40 years or very unlucky.
This post was edited on 5/8/23 at 8:49 pm
Posted on 5/8/23 at 9:01 pm to SaintsTiger
It’s gonna trickle down into rent prices. Best move to middle America
Posted on 5/9/23 at 6:23 am to fallguy_1978
quote:
That really could happen to almost all of the Gulf coast and the southern 3rd of the east coast.
Houston or Tampa could get hit with 3 big storms in 6 years or whatever. It's a crap shoot if you live in those areas. You might be good for 40 years or very unlucky.
FL got crushed in the mid 2000s and insurance rates didn't explode.
What blew the lid off of insurance costs was lawyers, AOB riders and the application of American Rule here in FL starting in 2018.
My insurance was $1200 - $1800 between 2000-2018.
It started going up in 2019 and last year was $5200.
Posted on 5/9/23 at 6:24 am to Chad504boy
quote:
gonna trickle down into rent prices
Nah man just rent from Blackrock
Posted on 5/9/23 at 7:03 am to Helo
quote:
What blew the lid off of insurance costs was lawyers, AOB riders and the application of American Rule here in FL starting in 2018.
Lawyers weren’t around in the mid 2000s? Prices of labor and materials and (perceived) higher hurricane frequency may have had something to do with your premium increases skyrocketing.
Posted on 5/9/23 at 8:09 am to SaintsTiger
Really considering paying the house off early and just self insuring, this is getting way out of hand.
Posted on 5/9/23 at 9:30 am to SaintsTiger
What the hell is her actual mortgage?
Her house note of $800, now $1,400, covered her mortgage, property taxes, flood insurance, and homeowner's insurance?
Not disputing that she should be upset that her policy jumped from $175/month to $560/month; plus the increased flood rates. Just shocking seeing that she probably has an actual mortgage of under $300
quote:
She just saw her monthly note rise from $800 to more than $1,400
“A $1,400 house note? It’s not looking good for me.”
Her house note of $800, now $1,400, covered her mortgage, property taxes, flood insurance, and homeowner's insurance?
Not disputing that she should be upset that her policy jumped from $175/month to $560/month; plus the increased flood rates. Just shocking seeing that she probably has an actual mortgage of under $300
Posted on 5/9/23 at 9:33 am to TJG210
My parents were not ready to pay off their mortgage just yet but worked with their agent to have a really high named storm premium and just stored the money in a CD. This let them drastically reduce their insurance costs, but did not stop them from bitching when they had to cash out the CD for repairs even though they had enough damage to still collect from the insurance company
Posted on 5/9/23 at 9:50 am to SaintsTiger
quote:
Lawyers weren’t around in the mid 2000s? Prices of labor and materials and (perceived) higher hurricane frequency may have had something to do with your premium increases skyrocketing.
Unfortunately Lawyers have always been around but in 2016 (not 2018) the FL Supreme court make a ruling that made it easier to recover attorney fees when filing lawsuits on roof damage.
Since then FL has accounted for 70-80% of all property lawsuits in the country.
2004-2005 had more hurricanes hit FL that any other 2 year period. FL always gets hit and yes there are many other factors like coastal expansion, population explosion etc, but there is no denying that increases in lawsuits had a massive effect on insurance rates.
Insurance Journal Article
Posted on 5/9/23 at 9:54 am to Chad504boy
quote:
It’s gonna trickle down into rent prices. Best move to middle America
Just move to the central part of the state.
Posted on 5/9/23 at 10:04 am to Drunken Crawfish
quote:
central part of the state.
Yeah because everyone wants to live in the booming metropolis that is Alexandria
Posted on 5/9/23 at 10:32 am to SaintsTiger
My premiums went up by 90% this time. A little over half of it was rate increase. The rest was a valuation bump. It was quite a shock. I’m 100 miles from the coast and live high on a hill the the Felicianas.
This post was edited on 5/9/23 at 10:33 am
Posted on 5/9/23 at 11:56 am to SaintsTiger
What’s absolutely killer is a mortgage on a $235k loan at 3% for 30 years combined with “replacement costs” that insure it for $325k or more.
Most people I know would sell their home today for what insurance says it’s “worth”, so they get pissed at the increases. I understand replacement cost and resale cost aren’t remotely the same, but the confusion leads to these pissed off folks and stories.
Most people I know would sell their home today for what insurance says it’s “worth”, so they get pissed at the increases. I understand replacement cost and resale cost aren’t remotely the same, but the confusion leads to these pissed off folks and stories.
Posted on 5/9/23 at 12:03 pm to SaintsTiger
3 big issues
1.We have a state that’s been unfriendly to insurance companies
2.some horrible storm losses
3.poor building codes
Building codes are improving.
Donelan is leaving but not sure if replacement will be better. The move to make the job an appointed one could be bad imo. Consider that a Democrat governor could appoint a trial attorney and scare the hell out of insurers.
Anyway… the next 12 months are going to be shakey.
Pray for no storm action.
1.We have a state that’s been unfriendly to insurance companies
2.some horrible storm losses
3.poor building codes
Building codes are improving.
Donelan is leaving but not sure if replacement will be better. The move to make the job an appointed one could be bad imo. Consider that a Democrat governor could appoint a trial attorney and scare the hell out of insurers.
Anyway… the next 12 months are going to be shakey.
Pray for no storm action.
Posted on 5/9/23 at 1:52 pm to Helo
quote:
2004-2005 had more hurricanes hit FL that any other 2 year period. FL always gets hit and yes there are many other factors like coastal expansion, population explosion etc, but there is no denying that increases in lawsuits had a massive effect on insurance rates.
Makes sense. Louisiana doesn't allow penalties and attorney fees to be included in calculating insurance rates.
quote:
B.(1)(a) Except as provided in Subparagraph (b) of this Paragraph, failure to make such payment within thirty days after receipt of such satisfactory written proofs and demand therefor or failure to make a written offer to settle any property damage claim, including a third-party claim, within thirty days after receipt of satisfactory proofs of loss of that claim, as provided in Paragraphs (A)(1) and (4) of this Section, respectively, or failure to make such payment within thirty days after written agreement or settlement as provided in Paragraph (A)(2) of this Section when such failure is found to be arbitrary, capricious, or without probable cause, shall subject the insurer to a penalty, in addition to the amount of the loss, of fifty percent damages on the amount found to be due from the insurer to the insured, or one thousand dollars, whichever is greater, payable to the insured, or in the event a partial payment or tender has been made, fifty percent of the difference between the amount paid or tendered and the amount found to be due as well as reasonable attorney fees and costs. Such penalties, if awarded, shall not be used by the insurer in computing either past or prospective loss experience for the purpose of setting rates or making rate filings.
I know plenty of people with bona fide claims who spent months and months trying to get their damages paid for. Many were significantly shortchanged. Insurance is suppossed to just write a solid check to pay claims, but they don't always do that. People need a way to enforce their rights.
Posted on 5/9/23 at 2:20 pm to Weekend Warrior79
quote:
Just shocking seeing that she probably has an actual mortgage of under $300
Seems like she purchased a POS home and fixed it up herself. If she only financed the home costs... if she bought basically a gutted home, could be a real cheap mortgage.
Posted on 5/9/23 at 2:24 pm to slackster
quote:
Most people I know would sell their home today for what insurance says it’s “worth”, so they get pissed at the increases. I understand replacement cost and resale cost aren’t remotely the same, but the confusion leads to these pissed off folks and stories.
I don't understand how this is legal.
We are forced to carry insurnace because we have a mortgage. As long as there is enough money to pay off the mortgage, if a claim is made, no one should care if I have enough money to build a new house.
If I suffer a total loss, I'll pay off the mortgage, and then build / buy a new house with a new mortgage.
Look, having options to insure at replacement costs is fine and perhaps in some instances a smart decision. But requiring it is crap.
Posted on 5/9/23 at 2:26 pm to SaintsTiger
quote:
I know plenty of people with bona fide claims who spent months and months trying to get their damages paid for. Many were significantly shortchanged. Insurance is suppossed to just write a solid check to pay claims, but they don't always do that. People need a way to enforce their rights.
The insurers are looking out for their bottom line, and the less they pay in claims, the better it looks.
The attorneys are looking out for their botom line, and the more they get the insurers to pay, the better it looks.
No one is looking out for the actual homeowners.
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