Herrera, 35, works in finance for a local bank. He bought his 900-square-foot home in New Orleans’ Mid-City neighborhood in 2020 for $270,000, and lives there with his partner. In 2022, he paid $1,600 a year for home insurance. But last July, his insurer canceled his coverage, saying it was leaving Louisiana. In the past, acquiring or keeping homeowners’ insurance didn’t present much of a problem.
“Now I have to worry about insurance coverage.” Insurers pull out In some places most exposed to climate change, insurers have stopped issuing policies. In May, State Farm, the largest home insurer in California, announced it would pause issuing policies in that state, citing wildfire risks. Farmers Insurance deemed it too risky to continue insuring homes in Florida and pulled out of the market there entirely.