Louisiana agents must ensure that their clients have proper flood coverage

Various industry officials and experts have highlighted the importance of securing adequate flood insurance before Louisiana’s hurricane season kicks into high gear

Insurance News

By Lyle Adriano

With Louisiana’s hurricane season typically starting in a month or two, insurance industry experts and officials have urged consumers to secure adequate flood coverage before then—agents operating in the area must help their clients to the best of their ability in this effort.

Officials with the Federal Emergency Management Agency (FEMA) reminded that policies through the National Flood Insurance Program (NFIP) do not take into effect until 30 days have passed since its purchase. The agency advised consumers to move quickly, as the policies will do nothing once obtained when the storm enters the region.

Some consumers have a tendency to misjudge their flood risk, lulling them into a false sense of security, experts said.

“Too few residences are covered by flood insurance policies because many homeowners and renters underestimate their flood risk,” remarked Insurance Information Institute senior vice president for public affairs Jeanne Salvatore.

Salvatore added that about 20% of all flood claims come from moderate-to-low flood risk areas.

“Most Americans should at the very least consider acquiring flood insurance because standard homeowners and renters policies do not cover flood-caused damage,” she stated.

A study conducted June by CoreLogic revealed that 69,544 homes in the state with a combined value of $14 million are at risk of flooding due to hurricane weather. Of those homes identified, 30,624 lie in zones deemed at “extreme” risk and can be flooded regardless of the hurricane’s category level. The other 30,269 homes are in “very high” risk areas that are vulnerable to Category 2 or higher hurricanes.

Notably, CoreLogic’s study found that none of the homes were listed in “low” risk areas.

An article on houmatoday.com advised homeowners to refer to the NFIP’s risk maps, available online, to gauge the risk of flooding in their areas.

Insurance agents may also use the same resource to anticipate communities that would be affected the most during hurricane weather.

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