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AKE CHARLES, La. - The sluggish real estate market in Louisiana can be attributed in part to skyrocketing insurance costs. Homeowners are facing significant increases in premiums due to the state's history of natural disasters.

    Insurance policies that once cost around $2,000 now range from $10,000 to $12,000, according to Andy Dressler, owner of Firm Louisiana Property and Casualty. Some insurance companies have even stopped writing policies in Louisiana altogether due to financial losses from recent hurricanes.

    Erika Carlisle, a realtor with Latter & Blum Compass, notes that many insurance agencies are no longer operating in the state after suffering significant losses following Hurricane Laura. This has left homeowners struggling to find affordable coverage.

    The rising cost of insurance is just one factor contributing to the challenges faced by sellers in the Louisiana market. Interest rates have also increased significantly, making it harder for people to afford homes. Realtors like Steven Floyd are adapting to these changes by finding new ways to market properties and offering more competitive pricing options.

    Dressler emphasizes that many homeowners are being forced to sell their homes due to unaffordable insurance premiums. His company is working to find better deals on insurance policies, often remarketing properties to secure lower rates with credible companies.