News 573 Home Insurance Louisiana Difficult Obtain

Its a viscous cycle for Louisiana residents living below I-10. They can't rebuild their home without a loan, they can't secure a home loan without homeowners insurance, and they can't pay for homeowners insurance without that loan. How is anyone to rebuild their home? Citizens Property Insurance, the state-run insurer of last resort is writing new polices, however they are incredibly expensive. A home insurance premium through Citizens could cost the same as a house payment and many cannot afford such expensive premiums in addition to the costs associated with rebuilding their property. Very few insurers, if any, are writing new policies in the area making it difficult to break away from the cycle. State Farm, Allstate and Farm Bureau, three of LA's largest home insurance providers before Hurricane Katrina, have all pulled out of the area.

Read more: No Insurance, No Rebuilding (KPLC) Don and Valerie Marx have been building their dream home from the ground up for the past year. Unlike their old house it survived Hurricane Rita. Don says, "It's almost finished, we're ready to move in, and close on the loan."