Hurricane Francine left thousands of homes in Louisiana’s Terrebonne Parish without power, with many homeowners lacking insurance. Nationwide, 13.4% of homeowners are also without meaningful insurance, hindering recovery from natural disasters. The South has the highest rates of uninsured homeowners, with under-insurance more prevalent in majority-minority counties.
The Census Bureau data reveals that both homeowners with and without mortgages may lack proper insurance coverage, with rising policy costs exacerbating the issue. Mark Friedlander of the Insurance Information Institute highlights the importance of insurance in recovery from catastrophic events, such as hurricanes and wildfires.
The lack of insurance not only impacts homeowners but also local businesses that rely on insurance claim payments for income. Uneven recovery efforts can deepen existing divides, as wealthier communities are better equipped to navigate the aftermath of natural disasters.
The housing cost crisis may also intensify as homes spared from disasters become more valuable. Redfin’s chief economist, Daryl Fairweather, emphasizes the need for equitable recovery efforts and the potential consequences of uneven assistance distribution. Ultimately, proper homeowners insurance is essential for both individual recovery and economic stability at a broader level.
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