How are rising flood insurance costs impacting policyholders?

How are rising flood insurance costs impacting policyholders? | Insurance Business America

Catastrophe & Flood

How are rising flood insurance costs impacting policyholders?

New survey reveals increasing financial burdens on residents

Catastrophe & Flood

By
Miko Pagaduan

54% of Louisianans who own flood insurance policies experienced a rise in coverage costs compared to the previous year, according to the newly released 2023 Louisiana Survey.

This finding indicates a consistent upward trend in the financial burden faced by residents of the state.

The annual Louisiana Survey, which has been conducted since 2003, aims to capture changes in residents’ assessments of state government services.

Last year’s survey showed that 50% of respondents reported an increase in flood insurance costs compared to 2021.

The director of the Louisiana Survey and professor of political communication at LSU, Michael Henderson, emphasized the significance of these results over the past two years.

“When we see numbers this robust, especially this year and last year, that suggests that there’s probably not a lot of random fluctuation here,” Henderson said. “This is probably a real thing where people genuinely believe that they are going up.”

Although the rise from 50% to 54% falls within the margin of error for the survey, the consistent upward trend is notable.

Henderson commented that flood insurance has been an ongoing concern for Louisiana residents, gaining prominence due to recent floods and other natural disasters.

Reports of expensive premiums have also contributed to the growing attention on this issue.

The study, conducted by researchers from the Reilly Center for Media & Public Affairs within the Manship School of Mass Communication at LSU, involved polling 500 adult residents across the state through traditional telephone-based surveys. The data collection took place from March 22 to April 4.

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