Homeowners Insurance Crisis: Rates Soar as More Carriers Leave Market

Soaring premiums, fewer carriers and worsening weather trends are contributing to an insurance crisis for homeowners in many areas of the U.S. In New Orleans, Louisiana, the market for Homeowners Insurance is “crumbling,” CNN reported March 29, with one resident telling the news outlet that his premiums increased from $1,600 per year in 2022 to $4,930 after his previous carrier pulled out of the state entirely. 

It is a situation being faced by homeowners across the country, particularly in places at high risk of severe weather — and relief may take time. The latest data indicates that another 6% increase in rates is expected nationwide this year, Insurance Business Magazine reported April 1, including a projected 23% increase in Louisiana.

“We felt a lot of this coming,” said Bart Dugdale , Associate Managing Director, Burns & Wilcox , Ruston, Louisiana. “A lot of what drives our market in Louisiana would be catastrophic events, primarily from the hurricanes.” Even with a relatively quiet season in the state last year, though, catastrophic losses in other regions — from the wildfires in Hawaii to hailstorms and flooding in other states — had a tremendous impact on the market, contributing to one of the largest loss years in recent history, Dugdale said. 

In California, insurance carriers have been retreating to some extent for the past several years, but this has escalated over the past year, said Tom Carvalho , Associate Managing Director, Senior Underwriter, Personal Insurance, Burns & Wilcox, San Francisco, California. Just this month, about 7,000 San Diego County homeowners learned they would need to find a new policy after another carrier, American National, announced it would stop doing business in the state, ABC 10 News reported. 

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