Carter Hosts Insurance Affordability Tour. Photo provided by Congressman Troy Carter's office.
NEW ORLEANS – Congressman Troy A. Carter, Sr. (D-LA), hosted Senator Sheldon Whitehouse (D-RI), Ranking Member of the Senate Environment and Public Works Committee, for an “Insurance Affordability Tour” in New Orleans with stakeholders across district LA-02 on Jan. 6. National and Louisiana Insurance Trends The U.S. Treasury Department’s Federal Insurance Office reported that premiums
The U.S. Treasury Department’s Federal Insurance Office reported that premiums increased faster than inflation between 2018 and 2022, with higher non-renewal rates in areas facing the greatest climate-related risk such as those in south Louisiana. The National Oceanic and Atmospheric Administration (NOAA), which tracks weather, climate, oceans and atmospheric conditions, has documented a sustained rise in billion-dollar disasters over the past decade, including hurricanes, severe storms and floods that have driven elevated losses.
Repeated losses from hurricanes in Louisiana led to more than a dozen insurer insolvencies or withdrawals after 2020, reducing competition and pushing premiums to historic highs.
While state data show that rate increases fell to about 6.6 percent in 2024, down from double-digit hikes in the prior two years, costs remain well above pre-2020 levels.
Meanwhile, FEMA’s Risk Rating 2.0 reforms, implemented in 2021 to align National Flood Insurance Program premiums more closely with property-level risk, have resulted in higher flood premiums for many policyholders as rates transition toward risk-based pricing. Participation in the National Flood Insurance Program (NFIP) in Louisiana has declined since the rollout, reflecting ongoing affordability pressures.
“Louisiana families and businesses are facing a crisis of rising homeowners and flood insurance premiums, worsening our housing affordability issues. We've seen premiums skyrocket, forcing families to make impossible choices between protecting their homes and paying for groceries, healthcare, or their children's education. Family businesses that have been pillars of our communities for generations are now wondering if they can afford to stay open here in south Louisiana. Some of our neighbors are being forced to go without coverage entirely, putting everything they've worked for at risk,” said Rep. Carter.
Against that backdrop, Carter hosted Whitehouse in the Upper Ninth Ward to show firsthand how insurance pressures are shaping housing and economic development in south Louisiana.
Impact on Housing and Development
During the visit, the Members met with residents, builders and housing advocates navigating higher insurance costs, including a homeowner who purchased through Habitat for Humanity’s Musicians’ Village and recently installed a fortified roof designed to reduce wind risk and lower premiums. At a nearby active construction site, Rebuilding Together is installing a similar fortified roof as part of resilience upgrades intended to improve insurability.
The tour also included an affordable housing project that has been delayed for years because of escalating insurance costs; the development is expected to add 83 new low-income homes once completed. Next, they visited the Naval Support Activity complex redevelopment, a large-scale mixed-use project planned to include 294 affordable housing units, retail space and a startup incubator.
The visit concluded at unCommon Construction, a workforce development nonprofit where high school students earn hourly wages and internship credit while building a house over the course of a semester.
“Our people shouldn't be penalized for geography. We've built our lives, our culture, and our economy here. We live in a working coastal community where we transport American goods worldwide from our ports, produce energy for the nation, and catch the best seafood on earth,” Rep. Carter continued. “That's why I invited Senator Whitehouse to Louisiana, to hear directly from residents about how these rising costs are affecting them and to better understand how Congress can be proactive. Whether it's reforming the National Flood Insurance Program, investing in mitigation and resilience, or finding new approaches we haven't considered yet. We will take what we learn here today back to Washington and fight to be a productive partner in combating these rising insurance costs.”
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