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Insurance Crisis in La - AP schools paying twice as much for half the coverage since 2019
Posted on 12/4/23 at 8:11 am
Posted on 12/4/23 at 8:11 am
quote:
Rising property insurance prices force a Louisiana school district to search for answers
With 32 schools, additional administrative and special-use buildings and the new Prairieville High School under construction, the Ascension Parish school system is a significant and expanding property owner in the fast-growing parish.
Louisiana's insurance crisis has hit the system and other public school districts as it has many homeowners in the state — with sharp increases in premiums and often for less coverage, school officials say.
Since 2019, the Ascension Parish School Board has paid twice as much money for half as much property insurance coverage, Ascension school officials said.
Property insurance premiums rose from $1.025 million for $100 million in coverage in 2019 to $2.3 million for $50 million in coverage this most recent year, said Chad Lynch, school system operations chief.
LINK
Maybe it's just me, but $50 million in insurance doesn't seem like a lot for a very large school district given what could potentially happen in South Louisiana during hurricane or flood season. I know some schools in the Lake Charles area took quite a while to get back up after the hurricanes tore open roofs, destroyed buildings, and damaged athletic fields and school buses just a few years ago. It wasn't cheap to get them back up again, and the government mostly left them out to dry.
Weird they singled out Ascension Parish schools. I know several retired folks that have moved from Houma to Gonzales because of the skyrocketing insurance rates closer to the coast.
This post was edited on 12/4/23 at 8:14 am
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Posted on 12/4/23 at 8:19 am to goofball
I heard a similar story about the Parish itself in Ascension last year. With property insurance being in shambles entities like the school boards or muni governments are having to make a calculated decision. They probably are not insured for the total value of every property they own. Given that the properties are geographically not all in one place the hope is that if a disaster happens that every building is not included in that disaster. For example, a tornado would hopefully not hit every building in AP schools. However, we live in south Louisiana and we know hurricanes and floods are usually large scale events.
And also, there may not even be a decision for them to make. There may not be an underwriter willing to take on the risk for their entire portfolio.
And also, there may not even be a decision for them to make. There may not be an underwriter willing to take on the risk for their entire portfolio.
This post was edited on 12/4/23 at 8:21 am
Posted on 12/4/23 at 8:24 am to goofball
quote:
Insurance Crisis in La
Posted on 12/4/23 at 8:25 am to rmc
quote:
And also, there may not even be a decision for them to make. There may not be an underwriter willing to take on the risk for their entire portfolio.
I’d guess this to be the case on several levels.
One, insurance companies are risk hesitant in LA between hurricanes and other issues.
Two, AP in particular has had insurance issues for a variety of reasons, including the Sorrento PD having to be shut down over a lack of carrier willing to cover them. SPD made their own bed with regards to car wrecks and other issues, but it is an example of public entities having trouble getting insured over there.
Posted on 12/4/23 at 8:25 am to goofball
Unpopular opinion: South Louisiana needs to start developing highways, flood protection, industry, and school districts north of I-10 somehow. Maybe along US-190, I-49, or US-61.
That’s not for political reasons. It’s purely to keep the state and region competitive from a COL standpoint and from a resiliency perspective.
The cities in south Louisiana seem to be sprawling every direction but north. We are building bigger, easier to hit targets for hurricanes and flooding issues in the future. It’s rare to see hurricanes really damage places like Kentwood, Zachary, New Roads, Carencro, etc. Houma, LaPlace, and Morgan City are much more vulnerable.
That’s not for political reasons. It’s purely to keep the state and region competitive from a COL standpoint and from a resiliency perspective.
The cities in south Louisiana seem to be sprawling every direction but north. We are building bigger, easier to hit targets for hurricanes and flooding issues in the future. It’s rare to see hurricanes really damage places like Kentwood, Zachary, New Roads, Carencro, etc. Houma, LaPlace, and Morgan City are much more vulnerable.
Posted on 12/4/23 at 8:25 am to rmc
I think some coastal parishes try to self insure or they purchase a similar catastrophic policy that will pay enough to get things back up and running and wait for FEMA to finish paying.
The crazy thing is that what they could be insured for the school boards would be woefully underinsured since many schools were built before new standards for classroom size and electrical use and handicapped access. In order to rebuild the cost maybe double than what they were insured for. That is where FEMA steps in and pays a large percentage of that.
There is one school right now in Terrebonne that is going through that process. Because the building was more than 50% damaged, they cannot just rebuild it. FEMA would want them to tear it down and build another school in the same location, but now that school would have to meet the new FEMA flood regulations and all sorts of new guidelines when building a new school. It is not just four cement walls air conditioning, and a single electrical outlet for an overhead projector and a TV like in years past.
The crazy thing is that what they could be insured for the school boards would be woefully underinsured since many schools were built before new standards for classroom size and electrical use and handicapped access. In order to rebuild the cost maybe double than what they were insured for. That is where FEMA steps in and pays a large percentage of that.
There is one school right now in Terrebonne that is going through that process. Because the building was more than 50% damaged, they cannot just rebuild it. FEMA would want them to tear it down and build another school in the same location, but now that school would have to meet the new FEMA flood regulations and all sorts of new guidelines when building a new school. It is not just four cement walls air conditioning, and a single electrical outlet for an overhead projector and a TV like in years past.
This post was edited on 12/4/23 at 8:46 am
Posted on 12/4/23 at 8:29 am to goofball
quote:How about calling the Head Crook in charge The Insurance Commissioner: Donelon
Rising property insurance prices force a Louisiana school district to search for answers
Posted on 12/4/23 at 8:34 am to frequent flyer
quote:
It’s rare to see hurricanes really damage places like Kentwood, Zachary, New Roads
Hurricanes? No, not directly.
Flooding? That’s a bit of a problem.
2016 was a historic flood but about half of Zachary flooded and all the development since then has probably made it worse should we get another sustained rainfall like that.
Posted on 12/4/23 at 8:37 am to goofball
I think God is trying to tell ya'll something
Posted on 12/4/23 at 8:38 am to teke184
quote:Yeh, but that diversion canal should help with everything (30+ years later and still waiting).
2016 was a historic flood but about half of Zachary flooded and all the development since then has probably made it worse should we get another sustained rainfall like that.
Posted on 12/4/23 at 8:39 am to TJack
Only diversion happening is my fricking money into some assholes’ pockets.
Posted on 12/4/23 at 8:45 am to Supermoto Tiger
Don't worry guys! They'll propose more legislation to help us with insurance, just like they did a few years ago. After promising this would prevent premium increases, etc., it has done nothing but frick over Louisiana residents.
Posted on 12/4/23 at 8:47 am to GoldenAge
quote:
hey'll propose more legislation to help us with insurance, just like they did a few years ago. After promising this would prevent premium increases, etc., it has done nothing but frick over Louisiana residents.
we found the ignorant backporch redneck drinking bud lights.
Posted on 12/4/23 at 8:54 am to goofball
quote:
additional administrative and special-use buildings
This is likely one issue - unnecessary buildings for "special use" or the bureaucracy
Posted on 12/4/23 at 8:55 am to Chad504boy
Building codes in Louisiana have not kept up with the age we live in. Fla changed their codes in 92 after Andrew but not their legal codes which is why they are in trouble now.
It's not just the school boards in trouble, every municipality is in the same strait.
It's not just the school boards in trouble, every municipality is in the same strait.
Posted on 12/4/23 at 8:56 am to GoldenAge
I guess it really depends on location in the state as well. Our homeowner's insurance didn't really go up much this year (about $100/yr). Our auto did go up about 18% though.
Posted on 12/4/23 at 9:00 am to goofball
yall should check out the money board post about the insurance agent salary and lifestyle in LA
Posted on 12/4/23 at 9:01 am to Supermoto Tiger
quote:
How about calling the Head Crook in charge The Insurance Commissioner: Donelon
No opinion on Donelon, but what are you suggesting a commissioner is supposed to do in this situation that he isn’t doing?
Posted on 12/4/23 at 9:05 am to frequent flyer
quote:
Unpopular opinion: South Louisiana needs to start developing highways, flood protection, industry, and school districts north of I-10 somehow. Maybe along US-190, I-49, or US-61.
La. R.S. 22:1892 and La. R.S. 22:1973 apply there too. Nothing will change until those laws are changed.
Posted on 12/4/23 at 9:15 am to goofball
Moving from Chicago to south Louisiana....the only thing more costly in La than in Il was insurance for both home and automobiles.
Everything else is significantly less expensive. Fuel, food, energy, taxes are all lower in Louisiana. Insurance is significantly higher. Road conditions and maintenance are much better in Illinois, and natural disasters are less common than in south Louisiana.
Louisiana has a major issue with under insured and uninsured drivers. That combined with a horribly maintained road network really makes car insurance very expensive than it should be.
Everything else is significantly less expensive. Fuel, food, energy, taxes are all lower in Louisiana. Insurance is significantly higher. Road conditions and maintenance are much better in Illinois, and natural disasters are less common than in south Louisiana.
Louisiana has a major issue with under insured and uninsured drivers. That combined with a horribly maintained road network really makes car insurance very expensive than it should be.
This post was edited on 12/4/23 at 9:18 am
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