NFIP: Number of Flood Policies in Louisiana Now at More than 480K
The National Flood Insurance Program (NFIP) says there are now more than 480,000 active NFIP flood policies in Louisiana following the March and August floods, representing an increase of more than 35,000 policies.
NFIP said the largest monthly increase — more than 20,000 policies — occurred from August to September last year. Ascension, East Baton Rouge and Livingston Parishes received the most damage from the 2016 floods and now account for more than 62,000 NFIP policies.
The Louisiana Department of Insurance reported that between July 30 and Oct. 31:
• In East Baton Rouge Parish, the flood policy count increased by more than 6,000 policies, or 26.6 percent.
• In Ascension Parish, the policy count increased by more than 2,200 policies, or 25.1 percent.
• In Lafayette Parish, the policy count increased by 2,200 policies, or 29.7 percent.
• In Tangipahoa Parish, the policy count increased by more than 1,600 policies, or 34 percent.
A major federal disaster declaration was issued for 26 parishes following the August flood event. More than 50 percent of structures flooded in August were located in low-and moderate-risk areas. Properties in these areas account for more than 20 percent of the country’s NFIP claims and receive a third of flood-related federal disaster assistance.
As of early January, the NFIP had issued more than $2 billion in payments as a result of the August flooding. After the August event, policyholders received an average payment of $83,862. The average NFIP payment after the March event was $53,053.
Since 1978, the NFIP has issued more than $18.2 billion in payments to Louisiana. The next three states with the highest losses — New York, New Jersey and Texas — have each received between $5 billion and $7 billion in payments.
The average annual cost of flood insurance is about $700, the state insurance department reported. Insurance holders may receive up to $250,000 for home damage and $100,000 for contents depending on the type and amount of coverage they bought. NFIP payments are not dependent on state or federal disaster declarations. New flood insurance policies go into effect 30 days after purchase.
The LDI reported that for the last three years, statewide the percentage of homeowners or renters with NFIP policies has remained constant at about 22 percent.