Insurance crisis leaves homeowners vulnerable in hurricane-prone Louisiana

Since the 2020 hurricanes, nine insurers became insolvent in the US state of Louisiana within a couple of years.

After Charles Barnette and his wife bought their home in 2015 in LaPlace, Louisiana, United States, neighbours warned of devastating floods from past hurricanes. But Barnette never imagined how bad it could be.

In 2021, Category 4 Hurricane Ida hit Louisiana with a huge storm surge and extreme winds, causing an estimated $18bn in insured losses.

The storm knocked an oak tree onto Barnette’s roof and flooded the home with up to 60cm (2 ft) of water. The water ruined the floors, walls, doors, cabinets, bedding, furniture, personal items, appliances and clothing. He had to hire a crane to remove the tree.

The couple received a small payment from the Federal Emergency Management Agency (FEMA) and their insurance company, Liberty Mutual, covered the cost of roof damage and removing the tree. But it refused to cover the water damage because it argued the policy did not include storm surge.

Barnette felt “screwed over” by the insurance company. “I believe that they are responsible because storm surge is wind-driven water and they are responsible for wind-driven damage,” he said in an email to Al Jazeera.