Anyone living in New Orleans with renter's insurance?

[Pandamonium]

So I moved to New Orleans in August 2008 and am thinking about getting renters insurance. I've put off looking into it because I've been swamped with school, but now that finals are over, I'm doing my homework. The general idea I'm getting is that renters insurance generally works out to about ~$150/yr. The quotes that I have been able to obtain are nothing like that. So I am thinking that the coverage I'm looking for is nothing like the norm, my area sucks, all insurance policies became much more expensive since the financial meltdown, or all of the above.

I've spoken to an Allstate and Liberty Mutual reps; both companies do not cover my area for whatever reason. Strangely, Allstate sent brochures to my apartment complex. (I'm estimating they sent about 500 brochures here)

State Farm will be contacting me whenever they get around to it.
Geico is starting around $500/yr, which seems unusually high.
Progressive's website quoted me with $250/yr, which, while more than I expected, is palatable.
Esurance's website quoted me with $271/yr

So to renters in New Orleans, is this normal? Should I go with some other insurer that I haven't already tried?

 

[Legendary]

Are you honestly expecting anything different?

 

[Pandamonium]

Yeah

I'd expect that all insurance companies insure all areas of the country.
I'd also expect my quotes to be reasonably competitive with those that others mention, not two-fold or four-fold higher.

 

[newb111]

I would expect areas with more claims to be more expensive, or for the companies to pull out altogether. It's a business, not a charity.

 

[MadAmos]

Looks like the hurricanes are at least part of it linky

 

[sjwaste]

Originally posted by: Pandamonium
Yeah

I'd expect that all insurance companies insure all areas of the country.
I'd also expect my quotes to be reasonably competitive with those that others mention, not two-fold or four-fold higher.

Insurance isn't socialism.

You live below sea level in an area that has a bit of a weather problem. For your rates to be lower, the ins co would have to eat the expected loss or others would have to subsidize your insurance with higher rates.

Google how insurance rating works. They don't just come up with numbers you find to be unreasonable, they pay actuaries to figure this stuff out.

If rates are too high, your choices are to take the risk yourself, or pay the high rate to shift that risk to the insurer. If not, move.

Also, why should carriers have to insure your area? If not enough people are willing to pay the local rate, which takes into account the chances of one or multiple catastrophes, then it doesn't make sense to take on that exposure. Basically, if most insurance carriers won't insure your area, that should tell you something about the chances you're taking by living there.

 

[Bignate603]

Originally posted by: Pandamonium
Yeah

I'd expect that all insurance companies insure all areas of the country.
I'd also expect my quotes to be reasonably competitive with those that others mention, not two-fold or four-fold higher.

Car insurance varies drastically by area, so does renter's insurance. It's all about the risk of insuring in that area. Areas that have huge amounts of claims (I seem to remember that New Orleans had a couple a few years ago) have higher costs. It's just how it is.