- Local business owner, Steven Sorrel, discusses issues he's come across while trying to navigate the ongoing insurance crisis
- He worries that continuing to raise prices, 'in order to stay in business,' will cause him to lose customers.
Steven Sorrel owns two laundromats in Acadiana: 'Johnston St. Coin Laundry' in Lafayette, and 'Canal St. Coin Laundry' in Jeanerette.
With insurance rates continuing to skyrocket, he says the burden of the cost needs to go somewhere. Now, we're finding out how the current insurance crisis is impacting a local business, and the owner's family.
"Eventually...this will be a ghost town," said Sorrel. "Because nobody will be able to afford to live here."
Since 2017, Sorrel has been running [Canal St. Coin Laundry], a local Jeanerette business.
"I've been told by a lot of people that they love that we're here, they love what we do...But businesses are really starting to take the toll of property insurance, especially in this area."
Sorrel says the premiums on his business in Jeanerette have increased more than 3.5 times, over the last couple of years, causing the prices he charges to go up as well.
"I did have to raise rates."
After experiencing some of the worst inflation rates in history...
"Groceries are expensive, utilities are expensive, driving back and forth is expensive..."
...and having to adjust his prices, Sorrel says he wants answers.
"Last year, I was told through an insurance agent that I could insure the value of the loan to keep the premium down."
After confirming with his bank that he was allowed to insure the loan value by itself, Sorrel says his rates still couldn't be lowered.
"I'm calling to get a quote," Sorrel explained, "I said 'I want a quote on just the loan value;' and the insurance [agent] said, 'Not gonna let it happen.' I asked them, 'Who requires me to have insurance?' They said, 'The bank.' I said, 'So don't I need to satisfy what the bank requirement minimums are? And they couldn't answer me."
According to Sorrel, this "tipping point" in the insurance crisis is driving his family to other states.
Looking for a job in marketing, Sorrel's daughter was looking to move back home to Acadiana; but with 'Louisiana insurance being as bad as it is,' Sorrel advised against it.
"When she got this offer in Charlotte, she took it. It's like I told her from the get-go: If you get an opportunity to get out of this state, go; because there's nothing here or you."
