Mortgage rates have climbed to 7.23 percent, the highest since 2001, which has cooled the housing market. But Louisiana Realtors CEO Norman Morris says a bigger obstacle to buying a new home is affordable homeowners insurance…
“In some places, the clients can’t even find insurance and they have to go into the state-run Citizens-run plan or the rates that they’re quoted are so astronomical it prices them out of the market to be able to insure that home moving forward.”
The average cost of homeowner’s insurance in New Orleans is $5,496. In Shreveport, the average cost is $2,849 and $2,968 in Lafayette.
Morris hopes a new governor and state legislature, along with Insurance Commissioner-elect Tim Temple can up with policies and legislation that bring more insurance companies to the state.
“We place more competition does two things: It brings the cost down for consumers ultimately and it gives consumers more choice in the options they have for the property insurance.”
Morris says in July 2022, closed sales were down by 27 percent and pending sales by 11 percent compared to July 2023. He says less destruction by hurricanes and tighter regulations may help stabilize the market and bring in new insurers.
“Let’s just pray that we can get through November 30 without a storm and I think that will go a long way to hopefully allow some companies to re-engage back in the market in Louisiana and follow that up with some good policies and regulations.”
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