Why New Orleans Recovery Is Stalling - Insurance Premiums : The Real Estate Bloggers

Why New Orleans Recovery Is Stalling - Insurance Premiums

August 9th, 2006 • Related • Filed Under

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The return of New Orleans has many hurdles, but one that  is lingering under the surface could be the  inability to find affordable insurance. After Katrina, many of the  insurance companies have left the marketplace as the risk is too great. That has left few options for homeowners and those options are typically extremely expensive.

If I owned an insurance company, I would have a hard time lending in the region, but you would think that there would be some competition in the region.

Some homeowners have found that post-Katrina they can afford a new home, but the problem is that most of the larger insurance companies don’t seem to be writing new policies.
He said the quotes he got on a $250,000 home were for $5,500 per year. That’s close to $450 a month added to his mortgage.
“There’s no way I could afford it,” he said.
Johnston was limited in his efforts to shop around as the only group that would insure the Kenner house was the Louisiana Citizens Plan, the insurance of last resort.
The problem is that most of the larger insurance companies don’t seem to be writing new policies and Citizens is designed to be expensive, so that it doesn’t compete with the other companies.
“Insurance is available,” said the President of the New Orleans Metro Association of Realtors. “It’s just not available at a price people would appreciate.”  via wwltv.com.

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