Coastal Louisiana residents are currently struggling with a diminishing home insurance market as insurers leave the state due to escalating climate risks. However, liquefied natural gas (LNG) facilities operating along the fragile Gulf coast continue to secure insurance coverage despite contributing to the climate crisis.
The disparity arises from the difference in risk assessment between residential policies, which can lead to massive claims during hurricanes, and large projects like LNG terminals, where risks are diversified among multiple insurers. Hurricane Ida’s impact in 2021 worsened the situation, prompting nearly two dozen insurance companies to leave the state.
As more people flee coastal areas, the loss of tax revenue diminishes the parishes’ ability to invest in essential infrastructure, aggravating the crisis. Meanwhile, insurance companies have resisted ending coverage for fossil fuel projects, despite their significant environmental impact. read the full story here