Flood Insurance in Louisiana

Traditional home owner’s insurance policies do not cover damages caused by flooding disasters. Flood insurance is a special policy that protects your home and contents from various types of flooding. Although flood insurance is not legally required throughout the state of Louisiana, most residents tremendously benefit from a flood insurance policy. Most flood insurance is provided through the National Flood Insurance Program (NFIP), but there are private policies available in some areas as well.

Whether your property is located in a high-risk flooding area meaning you have at least a one-in-four chance of flooding during a 30-year span, or you live in an area that is lower lying than the surrounding region, you should learn more about what flood insurance looks like for you. With the chances of hurricanes, tropical storms, and the average 50-70 inches of rain per year in Louisiana, chances of a flood event are common occurrences. That means that almost all residents would greatly benefit from a flood insurance policy. And did you know that if you are looking to qualify for a federally backed mortgage you will be required to maintain a flood insurance policy throughout the life of your loan? Even if you aren’t required to keep a policy due to loan requirements, you should look into a flood policy to protect your property since homeowner’s and renter’s policies do not cover damages caused by floods.

With an NFIP policy, coverage limits include up to $250,000 for the structure and up to $100,000 for contents or possessions.

The payout for structural coverage is based on replacement cost value (RCV) which means that deprecation for the structure is not taken into account. Payment for content coverage, however, is calculated off of actual cash value (ACV) which does account for depreciation of the items.

Are there things that aren’t covered by most flood insurance policies? Typically, cars, jewels and jewelry, and property outside of the home are not covered. Things outside of the primary structure such as swimming pools, patios, gardens, and decks are not covered under the policy. Additionally, most flood policies do not provide reimbursement for any loss of use, extra living expenses, or loss of business as a result of a flooding disaster. If there is a basement within the structure, the contents of the said basement are also usually not covered.

As with most insurance policies, there is a direct correlation to deductibles amounts and premium totals. A higher deductible (or amount of money you pay out of pocket before the insurance company will pay on a claim) results in a lesser premium. Although premiums throughout the state are reasonable as the average price for an NFIP policy in Louisiana is just over $700. One of the most expensive places to purchase flood insurance was Denham Springs while St. Bernard Parish was one of the cheapest locations. However, rates are commonly set based on your home’s base elevation as well as its location to nearby bodies of water. Things such as distance from flood mitigation structures such as levees are also taken into account. Finally, deductible and coverage limits are always some of the major factors in premium pricing.

There is almost always a 30-day waiting period on NFIP policies from the time they were purchased until they go into effect. Keep this in mind when planning for summer storms and fall’s rainy season. And remember that because NFIP is a FEMA program, rates are set by the Federal Government so there is no need to shop around for the best price on an NFIP policy, making it one of the best budget-friendly options. However, if you need additional coverage in your policy such as loss of use, you may be better off looking at private flood insurance policies.

Let us work with you today to make sure you have the best coverage at the right price for you!