BATON ROUGE, La. — As the spring rainy season approaches, Louisiana homeowners, renters and business owners are urged to purchase a policy through the National Flood Insurance Program (NFIP). NFIP provides affordable flood insurance to homeowners, condo owners, business owners and renters.
A few inches of floodwater can cause thousands of dollars’ worth of damage. Flood insurance is recommended even when properties aren’t in flood plains or high-risk zones. Properties located in high-risk areas have at least a one-in-four chance of flooding during a 30-year mortgage.
The average annual flood insurance policy costs about $700. Properties located in moderate- to low-risk areas may qualify for lower-cost Preferred Risk Policy rates. Premiums in these areas may be as low at $150 a year.
More than 50 percent of the homes and businesses damaged by the August floods in Louisiana were located in moderate- and low-risk areas. The NFIP has disbursed more than $2.3 billion to Louisiana policyholders for this disaster. The average claim payment for this disaster was $85,798. Payments are calculated on the value of the structure minus the depreciation at the time of the disaster.
In addition to coverage for structures, NFIP offers content coverage as low as $48 in some areas. There is a 30-day waiting period between purchasing a policy and the date the policy goes into effect.
FEMA assistance is not the same as insurance. Assistance only provides the basic needs for a home to be habitable. Insurance covers more damage. NFIP payments are not dependent on state or federal disaster declarations.
Go to www.floodsmart.gov to learn more about any property’s flood risk, estimate an NFIP premium or locate an insurance agent who sells flood insurance.
Visit www.ready.gov/floods for flood information and safety tips.
