re: Louisiana homeowners insurance market “unraveling.”

Yup. Lots of costs have gotten completely out of control because of the general view of “don’t worry, insurance will pay for it”. Build your house in a flood zone, or frequent wildfire zone, or have tons of unnecessary medical tests done, or run to the doctor for a stuffy nose? No worries, that’s what “insurance” is for.

If a jury had to look a defendant in the eye and say your one time mistake resulting in the minor inconvenience of the plaintiff is worth the next 20 years of your income, there would be a lot fewer judgements like that. But no, the jury sees “insurance” as a faceless bottomless pit of money to be doled out like they’re Robin Hood. Never understanding or caring that THEY are paying those judgements through higher premiums.

I just got my renewal today and I live in Central (EBR).

It went up $75 this year hardly doubled so must be people south I-10

In a good note car insurance for me, wife, and 20 year old college student dropped $470 every 6 months!

Clearly problems in LA right now, but looking to Florida doesn’t work this time - Florida’s insurance market is a big mess right now too:

Florida Ins market continues to spiral

No shortage of coverage of FL market

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Allowing people to sue insurance companies directly without first obtaining a judgement against the actual driver (or property owner etc.) just erodes this further by framing the lawsuit as a dispute between an injured party and a faceless insurance company that only exists to cover these types of losses, instead of a dispute between two drivers who got into an accident.

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You are not wrong.

The issue is we have a country where 57% of people pay no income tax, BECAUSE THEY DON'T MAKE ENOUGH MONEY. So... what percentage of Americans do you think could afford a 20K judgement against them? 10% maybe?

If Driver A's insurance company is ultimately footing the bill, they are going to want to be part of the conversation in determining how much is owed.

This is not a problem that is unsolvable. Every state deal with this. But just about every state has a better way to deal with it than LA does.

I moved from Harahan, and Louisiana, last year.

My last policy was around $3400/year for a small house, with another $600/year for flood. There was only one insurer my agent found during the last search they ran.

Moved to MS and paid $1600/year for a larger house. No flood required.

Excessive litigation is not the problem.

Sincerely,

The plaintiff bar.

Some guys who made bank betting the subprime mortgage economy would fail are now pitching investing in real estate in areas less effected by climate change. They predict that sunbelt and coastal homes and commercial buildings are soon going to start to lose value due to increased hurricanes, increased flood and HO insurance premiums, and such.

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Thats not how it works If I’m still only insuring 250k why should it go up just because my house went up in value? I’m not insuring any higher value, I’m still only insuring the 250k

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Here’s what happened:

First, most hurricane claims are not a total loss. That being said, let’s say 10% of your home was damaged due to a storm. 10 years ago maybe that cost $25,000. Today, it costs $50,000. Even though you haven’t increased your total insurable value, the risk to your insurer has increased significantly.

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Some guys who made bank betting the subprime mortgage economy would fail are now pitching investing in real estate in areas less effected by climate change. They predict that sunbelt and coastal homes and commercial buildings are soon going to start to lose value due to increased hurricanes, increased flood and HO insurance premiums, and such.

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Where’d you see this info from? I’m interested, please post the source. Thanks