Property Insurance For LA Residents Disappearing; No Problem For Oil & Gas Facilities, Though

[hatrack]

Residents of coastal Louisiana are facing growing risks from flooding and extreme weather, with options for home insurance vanishing as insurers leave the state. But the fossil fuel industry operating nearby has no such worries. Liquefied natural gas (LNG) terminals have been springing up along the fragile Gulf coast, securing insurance even as their product contributes to the climate crisis and its growing risks, including more intense hurricanes and increased coastal flooding that are driving away residents.

For large projects such as LNG terminals, risk is spread among many insurers; no one company is exposed to all of a terminal’s potential losses. The same is not true for insurance companies whose business is built around residential policies where hurricane damage can lead to millions of dollars of claims at once.

But that outcome is more than an actuarial calculation for residents: when Hurricane Ida made landfall in south-eastern Louisiana in 2021, an 8ft storm surge swept over a 6ft Mississippi River levee in Ironton, flooding and destroying much of the small town, even dislodging caskets from their tombs. Damage from Ida sent Louisiana’s property insurance market – already rattled by three major hurricanes in two years – into a full-blown crisis. By the end of 2022, nearly two dozen insurance companies had either left the state or gone under.

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The three parishes in Louisiana where LNG terminals are concentrated have all seen significant population decreases in the past two years, primarily driven by hurricanes. As more residents leave, the parishes are less able to invest in the infrastructure that makes coastal communities livable, including schools, driving even more people away. “Over time it will diminish the fiscal capacity of the parish in terms of tax revenue to even recover next time,” Jesse Keenan, a professor of sustainable real estate at Tulane University, said. “Forget plan or prepare.” “These parishes have terminal cancer, in the sense that these hurricanes are going to continue in their frequency and their intensity in ways that are really unprecedented,” Keenan said. “Insurance companies are aware of that.”

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https://www.theguardian.com/environment/2023/jul/24/louisiana-property-insurance-residents-gas-terminals

[2naSalit]

1. Once again...

It's all about the Benjamins. Nothing else can get in the way, even extinction of our own species.