Louisiana Has Nation’s 3rd Highest Rate Of Uninsured Homes
LOUISIANA – Updated analysis from LendingTree and industry reports have exposed a dramatic surge in home insurance non-renewals and rate increases, with Louisiana serving as ground zero for the home insurance crisis spreading across the nation. The analysis follows warnings from Unlocking America’s Future about the rapidly escalating homeowners insurance crisis that threatens to leave millions of families financially vulnerable.
In Louisiana, non-renewal rates have surged since 2018. Families who have paid premiums faithfully for years are discovering their policies won’t be renewed, forcing them into Louisiana’s insurer of last resort or leaving them to navigate an increasingly unstable private market with dramatically higher costs and leaving a shocking 21.2% uninsured across the state.
“Homeowners are being abandoned by their insurers at unprecedented rates while simultaneously facing skyrocketing rate hikes,” said Kyle Herrig, Unlocking America’s Future spokesperson. “In Louisiana, where the risk of floods, hurricanes, and other extreme weather is high, insurance corporations are exploiting families during their most vulnerable moments, dropping coverage without warning and denying claims, leaving them scrambling to find affordable and reliable alternatives that often don’t exist. At the same time, home insurance corporations, who are exploiting growing risks to jack up rates, are having banner years and posting record profits.”
National Home Insurance Crisis And Record Insurer Profits
The home insurance crisis is a national trend as insurance corporations experience massive profits. A recent report found at least six million policy holders have experienced rate hikes and an estimated 1.4 million policies have been canceled over just the last five years.
Average homeowners insurance costs have risen nearly 70% over the past five years, and families from coast to coast are being forced to make impossible choices between protecting their homes and paying for basic necessities like groceries and health care. Average homeowners insurance premiums are expected to grow by another 16% over the next two years, according to projections shared by real estate analytics firm Cotality.
Home insurance corporations continue to post record profits. An Unlocking America’s Future (UAF) analysis found the nation’s largest publicly-traded home insurers made $9 billion in underwriting profits during the third quarter alone and paid their executives over $115 million in compensation in 2024.
Chubb, one of the largest insurers in the world, posted a record after-tax profit of nearly $10 billion, and the corporation’s CEO bragged in a press release that the insurance corporation’s “full-year results in virtually every category were the best in our company’s history.” Chubb CEO Evan Greenberg sold 15,060 shares valued at nearly $5 million earlier this year.
FEMA Funding Cuts Leave Disaster Victims More Vulnerable
The Trump administration’s draconian cuts to FEMA disaster recovery funding threaten to eliminate a critical safety net for homeowners and their communities. Historically, FEMA assistance has helped bridge the gap between insurance payouts and actual rebuilding costs, providing grants to disaster victims while on-the-ground responses help minimize damage.
However, budget proposals and staffing cuts that would significantly reduce FEMA’s capacity could leave homeowners in Louisiana entirely on their own when their insurance falls short and threaten communities ability to rebuild.
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