Cost of Flood Insurance in Louisiana and How Coverage Works – ValuePenguin
Flood insurance protects your home and belongings from damage caused by floods. flood insurance is not legally required in louisiana. however, people who live in certain areas that have a high risk of flooding, such as along the swamp or mississippi river, may need to purchase it to qualify for a federally backed mortgage.
The two main options for purchasing flood insurance are through the National Flood Insurance Program (NFIP), a public entity administered by FEMA, or through a private insurer. Private flood insurance is often a secondary option, as private insurers don’t provide coverage in as many areas as NFIP.
cost of flood insurance in louisiana
The average price of NFIP flood insurance in Louisiana is $726 per year, although the amount you’ll pay can vary significantly depending on the location of your home. nfip flood insurance is calculated using a formula set by fema, so any company that sells an nfip flood policy will give you the same price.
The most expensive place we surveyed for flood insurance was Denham Springs, with an average price of $1,209 a year. the cheapest location we found was st. bernard, with an average price of $527 per year.
flood insurance prices in louisiana cities
We compiled average flood insurance rates in major Louisiana cities and unincorporated areas of flood-prone parishes. Please note that even within a given city or area, prices may vary significantly based on the criteria listed above.
do you need flood insurance in louisiana?
High-risk areas include those along the coast, a low-lying area such as a swamp, or near another body of water, such as the Mississippi or Atchafalaya rivers. even areas that are simply low compared to the surrounding area can be at risk. With 60 inches of rain a year, Louisiana is the wettest state in the US. uu. continental.
If you’re not required to purchase flood insurance, it may still be worth purchasing coverage. louisiana homeowners and renters insurance policies do not cover flood damage, and 25% of flood insurance claims are made by people outside high-risk flood zones. In addition, flood insurance claims are very common in louisiana. More claims were made in Louisiana in 2016 than the next three states combined.
Louisiana Flood Insurance Coverage
Louisiana residents can purchase flood insurance through the NFIP with coverage limits of up to $250,000 for the structure of their home and $100,000 for its contents. however, nfip flood insurance also has rules about what is covered. Generally, the structure and everything built into your home is protected. so is any property inside your house, though the rules are more complicated for anything in your cellar or basement.
items covered by flood insurance
Damage to the structure of your home is paid at replacement cost value (RCV), which means depreciation is not taken into account, as long as you live in a single-family home and it is your primary residence. Personal property is paid at actual cash value (ACV), which means depreciation is factored in.
what is not covered by flood insurance in louisiana?
Flood insurance doesn’t cover everything. your car, precious metals or jewelry, and property outside your home, like a pool or garden, are not covered. the same goes for anything damaged by moisture, mold, or rot, as well as anything damaged by earth movement, such as a sinkhole.
Items and expenses not covered:
Causes of damage not covered:
If you need coverage for any of the above, your best option is probably a private flood insurance provider.
How are flood insurance rates set?
The price you’ll pay for flood insurance is based primarily on the elevation of your home relative to nearby bodies of water, how far you are from the water, and any nearby mitigating factors such as levees. These rates also take into account the height of the lowest level of your home.
And as with other types of insurance, your rates will be affected by the dollar amount of coverage you purchase, as well as your deductible. a higher deductible results in a lower premium, and vice versa.
factors that affect your flood insurance rates:
how to get flood insurance in louisiana
Buying flood insurance in Louisiana works much like buying any other type of insurance. You will be connected to an insurance agent who can help you decide on coverage levels and provide you with a quote. you may need to submit an elevation test, a document that certifies the height above the water level of your home.
If you don’t qualify for NFIP coverage, or the coverage doesn’t meet your needs, such as if you need higher levels of coverage, you may want to purchase coverage from a private flood insurer. the process works the same way, although if you’re shopping for private flood insurance, you should compare rates as they can differ between insurers.