Many Louisiana homeowners must realize their home insurance doesn’t cover flood damage. Thankfully, affordable flood insurance is available through the National Flood Insurance Program and private insurers.
A few inches of floodwater can cause damage worth thousands of dollars. Louisiana residents should have flood insurance.
Building Coverage
Experts recommend homeowners purchase flood insurance because a few inches of flooding can cause thousands of dollars in damage. The National Flood Insurance Program offers affordable policies to protect your home from serious injury. Many mortgage lenders will require it if you reside in a Special Flood Risk Area.
Private insurance providers offer home flood insurance in Louisiana that provides two types of coverage: Building and Contents. The first covers your house, including its electrical system, built-in appliances and structure, and the second includes clothing, furniture, and electronic items. Optional coverages include loss of use, swimming pool cleanup and other optional coverages.
However, it’s important to note that the NFIP only provides actual cash value coverage for your possessions. If your belongings are destroyed by flooding, you’ll only be reimbursed for their current value rather than their replacement cost. Private flood insurance companies, on the other hand, can offer more comprehensive policies.
While most Louisiana residents who seek a flood insurance policy purchase one through the NFIP, private insurers also offer their government-backed policies. If you want to explore the different options, we recommend checking out our articles comparing personal NFIP policies and the best companies for home flood insurance.
Contents Coverage
Aside from a home’s structure, most items inside are also covered by contents insurance. A typical contents policy (sometimes called personal property coverage) reimburses you for the replacement cost of your belongings if they are stolen or damaged by a covered peril, such as floods. In most cases, however, these policies exclude personal possessions stored off-premises or items housed in a garage or garden shed not attached to your home’s structure.
You can buy a separate contents policy or, as is more common, have this coverage included in your home’s flood insurance. The amount of content coverage you get depends on how much your policy limit is, which varies from one provider to another. Generally, you will have two options: a “bedroom-rated” policy that calculates how much contents you need based on the number of rooms in your home and an “unlimited sum insured” policy that covers all your contents without limit.
When considering whether to purchase a home, it is important to consider the local flood risk. You can do this by looking at the FEMA flood maps online.
Additional Living Expenses Coverage
While damage caused by other forms of water, such as a burst pipe, may be covered by your homeowner’s insurance policy, flooding damages aren’t. As a result, it’s important to have flood coverage as part of your homeowner’s policy. With ALE, you can claim expenses like food and lodging while your home is repaired after a disaster.
Homeowners in Louisiana aren’t required by law to have flood insurance, though if you live in an area deemed high-risk for flooding (Special Flood Hazard Zones or SFHAs) or have a government-backed mortgage, your mortgage lender may require you to buy it. Whether or not you purchase flood insurance, it’s an investment that could benefit you in the long run.
The cost of NFIP flood insurance can vary greatly depending on your home’s location, parish, and historical flood risk. For instance, according to MoneyGeek’s research, Plaquemines Parish has the lowest rates, while Caddo Parish has the highest.
You can get an NFIP flood insurance quote for your home from the National Flood Insurance Program or a private insurer that offers a similar product. If you’re looking for a private company, compare prices and benefits carefully. Some companies may offer a higher building limit or include content coverage that the NFIP doesn’t provide.
Flood Damage Reimbursement
Home flood insurance costs are based on building type and location, how often it floods, how high the area gets during flooding events and more. FEMA sets NFIP insurance rates typically higher for individuals living in high-risk zones. The good news is that FEMA recently introduced Risk Rating 2.0, which will help suppress rates in high-risk areas.
Regarding home flood insurance coverage in Louisiana, you have options for obtaining policies that can be purchased from private insurers and the NFIP. The NFIP provides two types of insurance: building and contents. The building coverage covers the entire structure of your house, including all permanent elements such as flooring and paneling. Contents coverage protects personal items, such as furniture and electronics, that could be damaged or destroyed by a flood event. In most cases, the NFIP pays out enough to restore your belongings to their pre-flood condition or replace them with similar items.
Talk to your local agent today to purchase a flood insurance policy. You may need a policy to meet lending requirements, or your house is in a flood zone. In addition, a private policy can offer a variety of perks that aren’t available through the heavily regulated NFIP. For example, some personal flood policies cover additional living expenses and a swimming pool cleanout.
