Flood insurance Louisiana

Flooding in LA

 

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Does my Louisiana homeowner insurance cover flooding?

A typical Louisiana homeowners’ policy is written through Farmers, State Farm, Allstate, and Progressive, for instance, excludes flooding as something that will be covered under their homeowner’s policy.

In most cases, the only way to get flood coverage is by purchasing a stand-alone flood insurance policy. However, you should ask your homeowners agent if you can add an endorsement to your homeowner’s policy to cover flooding. Yet, don’t be too surprised if the answer is NO.

Do I need flood insurance in Louisiana?

It is important to have flood insurance coverage in Louisiana because our beloved Cowboy State has seen a fair share of flooding, and there is likely more coming.

We believe that most homeowners think about Flood insurance in Louisiana at some point, maybe before buying a home, or during the closing process.  However, many of us only think about it when a big storm is looming, or we have heard on the news that there is flooding forecasted or happening currently too close to our home.

If your home or business is in a flood zone, that is considered low flood risk area. Sadly, many homeowners decide to forgo purchasing coverage because they believe they are safe from flooding. Some real estate agents and some insurance agents may even say you don’t need it.

I ask you to consider the facts: 20-percent of all flooding events across our nation come in areas that are considered low risk. After our last few major storms (Hurricane Harvey), we saw flooding in these low-risk areas.  In 80 percent of these individuals, they had water in their home or building and didn’t have flood insurance coverage.

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In Harris county, nearly 135,000 homes were damaged.  Three-fourths of these properties were considered low to moderate risk.

We hear often that people believe that the government will help, and this is true.  However, there are a few things that must align for you to get government assistance.

  1. The president of the United States must declare the flooding event a state of emergency.  If this doesn’t happen, then there won’t be assistance.

  2. The average amount of assistance that homeowners get after a flood, when they do not have flood coverage, is $5,000.  The average cost of damage to one’s property after a flood is $38,000+.  That $5K you get from the government?  It comes in the form of a loan and you will need to pay it back.  Are you willing to gamble away your financial future by forgoing flood insurance coverage?

https://www.bloomberg.com/graphics/2017-fema-faulty-flood-maps/

FEMA flood maps

Louisiana flood map

One more note on these low-risk flood zone maps. Many of these maps are over 40-years old. If the area has been developed, then there is likely more concrete, creating a barrier for land that previously, might have absorbed the massive downpour.

Because of all these factors, it is difficult for property owners to know their true risk of flooding. FEMA admits that their flood maps only give an idea for part of the risk. Our recent storms are facts that it can rain anywhere within Louisiana, and you should consider getting flood coverage, so you are not uninsured when you need it most.

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Louisiana flood zone map

FEMA flood zone maps often take years to go into effect after the terrain was studied, this gives the impression that the area is “more up to date” then it really is.

The average cost for Louisiana flood insurance in these Low-risk areas is $595 per year.

Fema flood maps Louisiana

FEMA’s National Flood Insurance Program (NFIP) and all federally backed lenders rely on these Louisiana flood insurance maps to assess risk, set premiums, and determine who is required to purchase flood insurance. Bad information about an areas flood risk can leave property owners under or uninsured.

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Louisiana flood insurance increase

 

How much is flood insurance in Louisiana?

Louisiana NFIP flood insurance.

There are many options available in Louisiana regarding flood insurance, but they basically fall into two main categories.

The Government options also known as FEMA or NFIP and the private flood insurance market

The National Flood Insurance Program (NFIP), also known as FEMA, which is the government option for flood insurance.  The NFIP has enjoyed a 50-state monopoly on the flood insurance market.

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Not “private flood insurance” but NFIP Resellers

If you have Nationwide Flood Insurance, State Farm Flood Insurance, Progressive Flood Insurance, or any of the of the logos below then you are buying the NFIP flood policy that is just being resold through a government program. These companies are private companies, but their flood insurance is not. Here is a list of the 70 companies that resell the NFIP policy.

https://www.fema.gov/wyo_company

Progressive Flood Insurance

Louisiana private flood insurance market

 

Llloyds of London Flood Insurance ShopperThere are alternatives to the NFIP or government insurance.  It is called Private flood insurance most notably Lloyds of London Flood insurance, however, there are other options available in Louisiana. We shop all the options for your property in your region to ensure you are getting the best premium.  If you are ready to have us do the work for you, please click here.

Our shopping does include the NFIP because sometimes we find that with government subsidies you can get a much better premium.

Flood insurance quote in LA

Lloyds of London Flood Insurance Louisiana Market

 

Louisiana is fortunate to have many Lloyds of London flood insurance options. Although many Lloyds flood insurance companies will have you assume that there is only one option, nothing could be further from the truth.

Lloyds of London has a rich history and is attributed to have invented the very first modern insurance model. Unlike most of its competition, Lloyds of London is not really a company but rather a corporate body.  This structure works quite well since it has been around for over 330 years. Lloyds operates under multiple financial backers that all pool their capital to spread the risk.

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I have two blog posts that take a deep dive into Lloyds of London and what they mean to Louisiana’s flood insurance market.  If you are interested, the links are below.

Lloyds of London Flood Insurance

FEMA vs Private flood Insurance

Lloyds also insures the world for flood insurance, meaning they cover flooding events in India, Australia as well as much of Europe.  You see the “game” of insurance is to spread your risk since Lloyds is worldwide.

Lloyds of London Private Market Flood InsruanceMy joke here is that Lloyds is banking on Gods promise that he won’t flood the entire world again, …..so they won’t have to pay out the whole worlds flood claim.

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How much does flood insurance cost in Louisiana?

There are many factors that go into getting the cost of flood insurance for Louisiana. If your home is in what is considered low-to-moderate risk, you can get a heavily subsidized policy though the government.

Louisiana flood insurance low-to Moderate Risk rate and cost.
This is Flood Zone X, which is not lender required flood zone.

This is usually identified as an X-flood zone.  Then we would suggest the government Preferred Risk Policy (PRP) which is a subsidized policy and has set flood insurance coverage limits (see grid below):

Here a link if you want to really dig into this one. Be ready for an eye chart because every option is public record and should be standardized accost whoever writes these policies.

The average cost for flood insurance in Louisiana with the maximum set limits in these Low-risk flood zone areas is $405 – $700 per year.

https://www.fema.gov/media-library-data/1523307331106-4cf9726b2eb04c3471a3e9d37a58fa6a/09_prp_508_apr2018.pdf
A flood zone and SHFA rate maps
FEMA High-risk Rates
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If your property is in higher-risk flood zone, it is usually identified with a Flood Zone AE. Your lender will require you to have flood insurance. The cost of flood insurance in Louisiana depends on many factors that are unique to the structure. We are going to try to give you an idea for the most common homes we see in Louisiana with a slab on grade foundation.

We will look at the Louisiana cost of flood insurance for the NFIP maximum of $250,000 for the (building only) with NO CONTENTS and our recommended deductible of $5,000.

We will be rating this example on the NFIP, as well as on a few of our private flood insurance policies, specifically Lloyds flood insurance options in Louisiana.

Cost of Flood Insurance in LOUISIANA in high-risk flood zone AE

Our example is in New Orleans, but the premiums will be the same if in Jefferson Parish, East Baton Rouge, Kenner, Livingston Parish and many other Louisiana flood zones.

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In our example, the Base Flood Elevation (BFE is 5) and is a home that is built before 1973

NFIP option in Louisiana Flood Zone AE

SHFA

NFIP – Coverage of $250,000 building coverage (no Contents coverage) and $5,000 deductible

NFIP Annual premium in High-Risk flood zone is $1,360.00

This option is what we see if the property has had a flood loss before, and either doesn’t have an Elevation Certificate applied or the Elevation certificate showing that the lowest floor is 4 feet under the BFE for the area. You can use 10% of your coverage to cover other structures on your property

Private Flood insurance option (option 1) Not Lloyds

Coverage of $250,000 building coverage (no Contents coverage) and $5,000 deductible

Private flood insurance (option 3) Not Lloyds,

Annual premium in High-Risk flood zone is $1,150.00

This option will take properties that have had one flood loss as long as it has been more than five years, and the payout was under $100,000 on the claim. Their coverage matches the NFIP.  They will write practically all risks, don’t need an elevation certificate to rate, and are a bit lower in premium than the NFIP.

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Private Flood insurance –  Lloyds of London (option 2)

Coverage of $250,000 (RCV) building coverage, No Contents and $5,000 deductible.

Annual premium in High-Risk flood zone is $1,915.86

This option came out of the company that used to run the NFIP program, so the coverage almost exactly matches the NFIP coverage with two differences. They offer living expenses that will cover your cost when you are displaced from your home during repairs (most Lloyds flood policies offer this).  They also offer swimming pool cleanout, which is kind of unique so if you have a pool ask for this coverage.

There are more options coming online every day, and we are working to be looking into every viable option.

Currently, Louisiana has 500,352 NFIP policies in force to date with the total cost of $332,451,130. That would make the average for Louisiana $665. Of course, some will pay more, and some will pay less.

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La flood insurance

Click here to have us shop and save you money.

Hello, Louisiana!  Thanks for visiting our page for all your flood insurance needs.

Let’s start with Church Point, Louisiana.  The total policies in Church Point are 1,504 with $982,766 in total premiums.  The average flood rate here is $653.

Moving along to Duson, Louisiana.  In Duson, the average flood rate is $895.  The total premiums in Duson are $956,874 with 1,069 total flood policies in effect.

When we look at Iota and Allen Parish, we find a total of 778 active flood policies with $615,872 in premiums.  The average flood rate for these areas is $792.

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Next, let’s look at the flood information for Elizabeth and Oberlin, LA!  Their average flood rate is $613.  The total number of flood policies in these areas is 356 with $218,306 in total premiums.

Flood insurance cost Gonzales la

Gonzales, Louisiana has 1,330 total policies in effect.  The average flood rate for Gonzales is $840 with $1,117,249 in total premiums.

When we look at Assumption Parish, LA, we find 1,546 total active flood policies.  In Assumption, Louisiana, the average flood rate is $508 with $785,866 in written premiums.

$715 is the average flood rate in Avoyelles Parish, Louisiana.  This includes 802 active flood policies and $573,777 in premiums.

Let’s look at Beauregard Parish and Deridder, Louisiana, where they have 405 total active policies and $232,900 in total premiums.  The average flood rate for these areas is $575.

Bossier City, Louisiana has 3,406 active flood policies with $2,911,280 in total flood premiums.  The average flood rate for Bossier City is $855.

Looking at Bossier Parish, we see they have about half the flood policies as Bossier City – 1,888 active flood policies.  In Bossier Parish, the average flood rate is $614 with $1,158,822 in total flood premiums.

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Shreveport, Louisiana has an average flood rate of $752.  The total premiums in Shreveport are $3,582,426 with 4,765 flood policies in effect.

741 flood policies are active in Caddo Parish, LA.  The total premiums for Caddo Parish, Louisiana are $524,299 which allows the average flood rate here to be $708.

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Let us to the flood insurance shopping for you – Save time.

$608 is the average flood rate for Calcasieu Parish, Louisiana.  The total premiums written in Calcasieu Parish are $5,158,398 which includes 8,514 active flood policies.

Flood insurance lake Charles la

Lake Charles, Louisiana!  So nice to have you stop by!  You all have 6,136 flood policies in effect with $3,920,974 in written premiums.  The average flood rate for Lake Charles is $639.

In Sulphur, Louisiana, there are 1,467 active flood policies.  The average flood rate for Sulphur, Louisiana is $726 with $1,065,676 in total premiums.

Let’s look at Westlake and Caldwell Parish, Louisiana.  These two areas combined have 697 active flood policies with $523,950 in total premiums.  The average flood rate here is $752.

There is $1,911,709 in total flood premiums in Cameron Parish, Louisiana.  The average flood rate for Cameron Parish is $1,145 with 1,670 active flood policies.

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When we check out Catahoula Parish and Concordia Parish, LA, we find $1,046,305 in total flood premiums.  There are 1,468 flood policies in effect in these areas which allows the average flood rate to be $713.

Vidalia and Baker, Louisiana have 1,244 total flood policies in effect with $899,689 in written premiums.  The average flood rate for these areas is $723.

$697 is the average flood rate for Central, Louisiana.  Central has 5,187 active flood policies with $3,616,996 in total premiums.

Flood insurance Baton Rouge Louisiana

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Hello East Baton Rouge, Louisiana.  You all have a lot of flood policies, 37,228 to be exact.  The average flood rate here is the same as above: $697.  The total written premium for East Baton Rouge is $25,936,007!  Thanks for checking out our page East Baton Rouge.

Zachary, Louisiana has 1,196 active flood policies with $713,439 in total flood premiums.  The average flood rate for Zachary is $597.

Let’s look at Evangeline Parish, Ville Platte, and Franklin Parish, Louisiana.  In these areas, the premiums total up to $652,777 with 1,013 active flood policies.  The average rate for these areas is $644.

552 flood policies are in effect in Grant Parish and Delcambre, Louisiana.  The premiums in these areas total up to $481,320 which allows the average flood rate to be $872.

There are 3,237 active flood policies in Iberia Parish, Louisiana.  The average flood rate in Iberia is $770 which includes $2,492,458 in total premiums.

When we look at New Iberia, Louisiana, we find the average flood rate to be $577.  The total number of flood policies in New Iberia is 1,463 which includes $844,105 in total premiums.

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In Iberville Parish and St. Gabriel, Louisiana, there are 1,230 active flood policies with $822,241 in total premiums.  The average flood rate in these areas is $668.

Jefferson Davis and Grand Isle, Louisiana have an average flood rate of $1,401.  The total number of flood policies in effect here is 1,479 which includes $2,071,497 in premiums.

$2,824,828 is written in flood premiums in Gretna, Louisiana.  The average flood rate in Gretna is $887.  The total number of flood policies is 3,185.

Harahan, Louisiana has 2,602 flood policies in effect with $1,132,129 in flood premiums.  The average flood rate for Harahan is $435.

Hello Jefferson Parish, LA!  You have a very high number of active flood policies – 84,802!!  The total premiums for all these flood policies are $55,743,578 which allows the average flood rate for Jefferson Parish to be $657.

Flood insurance Kenner LA

15,714 flood policies are in effect in Kenner, Louisiana!  The average flood rate for Kenner is $665 which includes $10,454,709 in written flood premiums.

In Westwego, Louisiana, there are 1,346 active flood policies and $796,299 in premiums.  The average flood rate for Westwego, Louisiana is $592.

Let’s look at Broussard and Carencro, Louisiana.  You all have 955 active flood policies.  The average flood rate for these areas is $542 which includes $517,305 in total premiums.

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Flood insurance Lafayette LA

$6,106,776 in flood premiums are in effect in Lafayette City – Parish, Louisiana.  The total number of flood policies active here is 11,540 which allows the average flood rate to be $529.

Looking at Lafayette, Louisiana, there are 7,695 active flood policies and $4,683,194 in total premiums.  The average rate for Lafayette is $609.

Scott, Youngsville, and Golden Meadow, Louisiana have an average flood rate of $744.  The flood policies here total up to 1,815.  The flood premiums total up to $1,349,729.

11,231 flood policies are active in Lafourche Parish, Louisiana.  The total premiums written here are $6,946,925 which allows the average flood rate to be $619.

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Let’s check out a group of areas: Lockport, Thibodaux, and Albany, Louisiana.  These three areas have a total of 1,165 active flood policies and $732,884 in premiums.  The average flood rate for these areas is $629.

Flood insurance Denham Springs LA

Denham Springs, Louisiana has an average flood rate of $1,174.  The premiums in Denham Springs total up to $2,557,753 with 2,178 active flood policies.

Looking at Livingston Parish, we find 16,080 flood policies in effect with $10,798,349 in total flood premiums.  The average flood rate in Livingston Parish is $672.

$884 is the average flood rate for Walker, Louisiana.  The total number of flood policies in Walker is 1,139 with $1,006,639 in written premiums.

When we look at Madison Parish, Tallulah, Morehouse Parish, and Natchitoches Parish, LA, we find an average flood rate of $674.  The total number of active flood policies in these areas is 1,064.  These areas have a total of $716,988 in flood premiums.

Hello New Orleans, LA!  Your city is truly beautiful.  Whether it’s taking a walk along Bourbon Street or sitting in a café with a beignet and chicory coffee, the energy of your city can be felt!  You all have 80,525 total flood policies in effect with $51,225,295 written in premiums.  The average flood rate for New Orleans, Louisiana is $636.

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3,217 policies are in effect in Monroe City, Louisiana.  The average flood rate for Monroe is $636 with $2,462,262 in total flood premiums.

Ouachita, Louisiana has an average flood rate of $725.  The total number of policies in Ouachita is 3,217 with $2,462,262 in premiums.

In Plaquemines Parish, Louisiana there are 5,328 total policies with $4,052,176 written in premiums.  The average flood rate for Plaquemines Parish is $761.

Pointe Coupee Parish, Louisiana has 1,203 active flood policies.  The average flood rate here is $667 with $802,286 in total flood premiums.

1,792 flood policies are in effect in Alexandria, Louisiana.  The premiums in Alexandria total up to $1,429,988 which allows the average flood rate to be $798.

There are $1,003,839 in total flood premiums in Rapides Parish, Louisiana.  The total number of flood policies in Rapides Parish is 1,491 which causes the average flood rate to be $673.

$523 is the average flood rate in St. Bernard Parish, Louisiana.  There are 10,893 active flood policies in St. Bernard Parish and $5,694,361 in written premiums.

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When we look at St. Charles Parish, Louisiana, we find an average flood rate of $595.  This includes $6,982,486 in total flood premiums and 11,738 flood policies in effect.

Next, we’ll look at St. James Parish, Louisiana where they have 1,214 active flood policies with $535,542 in premiums.  The average flood rate in St. James Parish is $441.

The average flood rate rises in St. John the Baptist Parish, Louisiana to $731.  The total number of active flood policies in 6,956 with $5,086,690 in total premiums.

St. Landry Parish, LA has 2,091 active flood policies with an average flood rate of $629.  The premiums in St. Landry Parish, Louisiana is $1,315,875.

In St. Martin Parish, LA, the total written premiums are $1,720,559.  The total number of policies in effect is 2,492.  This allows the average flood rate to be $690.

Let’s check out Berwick and Franklin, Louisiana where they have 1,244 active flood policies.  Their average flood rate is $838 which includes $1,043,006 in total flood premiums.

$884 is the average flood rate in Morgan City, Louisiana.  The total number of flood policies in effect in Morgan City is 1,639 which includes $1,449,507 in total premiums.

1,435 total policies are in effect in St. Mary Parish, Louisiana.  The premiums in St. Mary Parish total up to $1,609,814 which allows the average flood rate to be $1,122.

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Glad to have you stop by Covington, Louisiana.  You all have 1,550 active flood policies and $1,151,446 in written premiums.  Your average flood rate in Covington is $743.

Flood insurance estimate in Mandeville, LA

Mandeville, Louisiana has an average flood rate of $706.  In Mandeville, the premiums total $2,224,874 which includes 3,152 in active policies.

Flood insurance rates Slidell, LA

There are 6,594 flood policies in effect in Slidell, Louisiana.  The average flood rate in Slidell is $1,022 which includes $6,739,772 in written premiums.

Hello St. Tammany Parish, Louisiana!  You all have 38,238 in active flood policies with $22,431,279 in total premiums.  Your average flood rate is $587.

1,466 policies are in effect for Hammond, Louisiana with $1,327,954 in total flood premiums. The average flood rate for Hammond is $906.

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$4,020,343 is the flood premium total for Tangipahoa Parish, Louisiana.  The average flood rate here is $906 which includes 7,660 active flood policies.

Glad you stopped by Houma, Louisiana!  You have 4,673 flood policies in effect.  The premiums in Houma total $2,735,033 which allows the average flood rate to be $585.

In Terrebonne Parish, Louisiana, the average flood rate is $711.  There are 11,111 flood policies in effect with $7,896,811 total flood premiums.

Flood insurance cost in Abbeville, LA

Let’s check out Union Parish, Abbeville, and Erath, Louisiana!  These areas have a total of 1,521 active flood policies.  The premiums here total up to $1,331,713 which causes the average flood rate to be $876.

4,584 flood policies are active in Vermilion Parish, Louisiana.  The average flood rate in Vermilion Parish is $684 which includes $3,137,432 in written premiums.

Finally, let’s look at Washington Parish and West Baton Rouge, Louisiana.  These two areas have $852,189 in written premiums and 1,460 active policies.  The average flood rate in these areas is $584.

Thanks for checking out all the flood information on Louisiana!!

FLOOD NERD FISHING

Louisiana Flood Insurance Cost Calculator

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For decades, the NFIP has over-charged 50 percent of its policyholders and under-charged the other 50 percent, while it has racked up $42 billion in taxpayer-funded losses, equating to more than half of every claim paid by the NFIP since 1978.

About 30 percent of NFIP claims payments go to the same 3 percent of insured “repetitive loss” structures year after year. When you do the math, this means that the other 97 percent of their flood-exposed constituents could have paid in less and still netted larger claims payouts if they had better access to private flood insurance. In fact, a recent white paper by Milliman found that 90 percent of homes in Sandy-struck New York and New Jersey would see reduced flood insurance rates through private insurers.

 

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References
the following documents contain additional hydrologic data, flood photos, historic flood descriptions, floodplain delineations and other pertinent information, and should be considered supplemental to this flood warning plan:
https://bsa.nfipstat.fema.gov/reports/1011.htm#COT
https://www.fema.gov/average-claim-payments-date-loss
https://www.fema.gov/national-flood-insurance-program
https://www.fema.gov/media-library-data/1486576697135-ac6348fb2a3d98ceba33cf3f38422dbc/Claim_Loss_Counts_Sept2016.pdf
https://www.fema.gov/media-library-data/1458666638945-d752cb148ef1348b4b1c22acec66a0bd/Claim_loss_count2015.pdf
https://www.fema.gov/media-library-data/1393877884619-3091f75bf9d46a26f5beb7d423c34529/Total_Claim_Count_fy2013.pdf
https://www.weather.gov/safety/flood-states-la