Do I Need Flood Insurance in Louisiana?

by | Jan 12, 2022 | Flood Insurance

Louisiana home and business owners are vulnerable to flood damage since the state is located on the Gulf of Mexico and below sea level. There is always a concern when heavy rain pours down or a hurricane is predicted to hit Louisiana because it could be catastrophic, especially with flooding being the number one natural disaster in the United States.

To protect your home and business from property damage and damage to personal belongings, you should purchase a flood insurance policy. This is a separate policy from the standard homeowner’s insurance policy.

Flooding is the overflow of rising water into any normally dry area. This means the water can come from a river, stream, drainage system, or water pooling from rainfall. According to the Federal Emergency Management Agency also known as FEMA, just one inch of water can cause $25,000 worth of damage to a home.

As scary as that sounds, many homeowners do not carry flood insurance in Louisiana due to the added expense they incur since it is not covered under the homeowner’s insurance policies. Not having flood coverage is one of the biggest mistakes a homeowner can make because of the unpredictable weather Louisiana residents experience.

Read also: How to Protect Your Home from Spring Flooding

The safest thing to do is to contact a local expert on the matter such as TSL Insurance Group to discuss flood insurance options for yourself, your home, or your business.

3 Reasons to Buy Flood Insurance in Louisiana

Live in a flood zone

Residents who live in a high-risk area for flooding are required to purchase flood insurance if they have a mortgage from a federally regulated lender. This is the most significant reason a homeowner should protect themselves from flooding because living in a flood zone increases the risk.

Coverage option

The National Flood Insurance Program, or NFIP, offers two types of flood insurance: dwelling coverage and personal property coverage. Dwelling covers the structure of the home while personal property, also known as content coverage, covers your belongings.

Other Factors

This is based on any flood features you may have that determine the cost of your policy. For instance, if your home is elevated or if you have an opening for water to drain out of, the cost for flood insurance may be lower due to the decreased risk of water damage from flooding. If a homeowner lives in an area prone to flooding, then the premiums would be higher than someone who does not.

Is Flood Insurance Mandatory in Louisiana?

Louisiana does not mandate flood insurance unless you live in a special flood hazard area (SFHA) that is high risk for flooding and have a federally backed mortgage, then you are required by the U.S. government to have flood insurance.

The flood zone determination is monitored for FEMA flood map revisions and community participation status changes for the term of the loan to maintain compliance with federal regulations. But, if you do not live in the SEFA flood hazard area and are low risk for flooding, your mortgage lender can still require you to have flood insurance.

How Much is Flood Insurance in Louisiana?

The cost of flood insurance is an average of $715 a year or $60 a month in Louisiana which is $243 a year less than the national average amount. Adequate flood insurance required by the Flood Disaster Protection Act is calculated by the lesser of the following.

  • The outstanding principal balance of the loan.
  • The insurable value of the structure.
  • The maximum amount of coverage offered by the NFIP available for that particular property.

If you think your home is at risk for flooding, contact TSL Insurance Group in one of their three offices in Louisiana to discuss your flood insurance options.

Keep in mind that most insurance companies have a thirty-day waiting period which means your insurance policy will not go into effect until thirty days after the policy is signed. In addition, most insurance carriers will not allow anyone to purchase flood insurance in Louisiana when a storm is in the forecast.

With the next flood insurance policy renewal approaching in April, it would be wise to speak to an insurance agency such as TSL Insurance Group to get the facts on flood insurance. As a home or business owner, protecting your property from flood damage before it is too late should be a priority.

To learn more about flood coverage, contact the TSL Insurance Group nearest you to schedule an appointment in the Louisiana areas of Lafayette, Franklin, or Abbeville.

One of our highly trained representatives will work with you to answer all your questions and find the right policy to protect you against damage or loss from flooding.

Let TSL Insurance Group protect your future worry-free. We got you covered.