BATON ROUGE, Sun. (WAFB) – In the past few years, more than 20 companies have withdrawn insurance from the state of Louisiana or gone under.
“We’re definitely in trouble,” said Rajesh Narayanan, professor in the LSU College of Business.
Louisiana has seen an unprecedented number of hurricanes. In 2020, Hurricane Laura devastated our Western neighbors, leaving over 40,000 homes destroyed.
Laura was followed by two other storms, Delta and Zeta. And in 2021, Hurricane Ida made landfall in the state as a Category 4 hurricane.
“Many companies are unable to settle claims,” Narayanan said.
The total is about $23 billion worth of claims.
“Right now, our situation is either the prices are too expensive and people can’t afford them or the company will go out,” added Narayanan.
The average premium for home insurance in Louisiana is over $2,000 per year, which is 46% higher than the national average.
“There will be fewer or no people moving here. That’s what we’re going to see and change in transit,” Narayanan said.
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