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Shifting climate, intensifying storms driving insurance crisis in Louisiana

More than 8% of Louisianans were displaced by a natural disaster last year, compared to a nationwide average of 1.6%.

By Leslie Kaufman | September 11, 2023 at 08:37 AM
“There's no question we're experiencing a crisis in the insurance availability in our state,” said James Donelon, commissioner for the state’s Department of 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.” Credit: Mark Felix/Bloomberg “There’s no question we’re experiencing a crisis in the insurance availability in our state,” said James Donelon, commissioner for the state’s Department of 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.” Credit: Mark Felix/Bloomberg

(Bloomberg) — A little over a year ago, Peter Gardner, a Louisiana developer, completed rehabbing an apartment building with 144 units and got a surprise so ugly it made him decide to move his business out of town.

When the project began, his broker estimated the annual cost of insuring it would be $75,000. But by the time Gardner finished it, the insurance cost had risen to $175,000. He paid it, but when he went to renew the policy this past July, he got another shock. The broker now said it was $275,000. An alternative broker could only find policies over $300,000 per year.

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