Louisiana Insurance Lawyer Blog

Tropical Storm Lee is expected to produce extensive rainfall. The National Weather Service National Hurricane Center advised at 1 p.m. today that

TROPICAL STORM LEE IS EXPECTED TO PRODUCE TOTAL RAIN ACCUMULATIONS OF 10 TO 15 INCHES OVER SOUTHERN LOUISIANA...SOUTHERN MISSISSIPPI...AND SOUTHERN ALABAMA THROUGH SUNDAY...WITH POSSIBLE ISOLATED MAXIMUM AMOUNTS OF 20 INCHES. THESE RAINS ARE EXPECTED TO CAUSE EXTENSIVE FLOODING...ESPECIALLY IN URBAN AREAS.

Flooded Businesses and Homeowners should be advised that there are key steps to filing a National Flood Insurance Program flood insurance claim.

1. Contact your agent or insurance company to file a claim;


2. Separate damaged from undamaged property.


3. The insurance company's flood adjuster will need evidence of your structural and/or damaged content to assist in preparing his estimate. Take photograph of all damaged property (including any of the property you plan on throwing away). Take a photograph of the flood line and


4. Make an accurate list of all damaged content including date of purchase, cost and value before flood. If you have any receipts for the contents that were damaged, please save them.


5. Timely file your Proof of Loss form with your insurance company within 60 days of the flood.


6. If you are having trouble with your insurance company or have any questions about your insurance claim, contact your Louisiana Storm Insurance Lawyer.

Louisiana Flood Insurance applicants should know The National Flood Insurance Program usually requires a 30-day waiting period, after applying and paying the premium, before the flood insurance policy becomes effective. However, there are exceptions:

1. There is no waiting period when flood insurance is required by a lender in connection with the making, increasing, extending or renewing of a loan. The policy will be effective at the date of the loan closing, as long as the application has been completed and the premium payment has been made at or before the closing date.
2. There is no waiting period when flood insurance is required by a lender after a mortgage portfolio review shows that the building is in a high-risk area. The policy will be effective upon the completion of the application and receipt of the premium payment by the insurer.
3. There is a one-day waiting period when a new policy or additional amounts of coverage are required by the lender during the 13-month period following certain map revisions. This applies when the map revision changes the structure's designation from a non-high-risk area to a high-risk area.

Speak with your flood insurance agent to see if you qualify for one of the exceptions.

If you have flood insurance and need help with your flood insurance claim, contact a Louisiana flood insurance lawyer.

Today, the US Army Corps of Engineers released a Doomsday Scenario 2" Floodmap that indicates flooding that may take place if the Corps does not open the Morganza Spillway.

The map shows extensive flooding would occur between New Orleans and Baton Rouge. As much as 30 feet of water would be found in New Orleans and Baton Rouge.

The US Army Corps of Engineers is expected to open the Morganza Spillway in the near future.

If you home or business is damaged by floodwater, contact a Louisiana Flood Insurance Attorney.

ProjectedLouisianaFloodMapSpring2011.pdf

This map has been completed using the best information available and is believed to be accurate; however, its preparation required many assumptions. Actual conditions during a flood event may vary from those assumed, so the accuracy cannot be guaranteed. The limits of flooding shown should only be used as a guideline for emergency planning and response action. Actual areas inundated will depend on specific flooding conditions and may differ from the areas shown on the map. Information on this map is intended to permit state and local agencies to plan emergency evacuation and flood response actions.

Morgan City is faced with possible record flooding. If the Morganza Spillway is opened, Morgan City could face twelve feet of water exceeding the 10.53 record set in 1973. Heavy losses may be expected on the Atchafalaya River side of the levee in Morgan City.

Source:

National Weather Service Hydrolgic Outlook

Twenty Louisiana parishes have now declared a state of emergency to prepare for flooding, including:

• Ascension
• Assumption
• Avoyelles
• Catahoula
• Concordia
• East Baton Rouge
• East Carroll
• Iberia
• Iberville
• LaSalle
• Madison
• Pointe Coupee
• Saint James
• Saint Landry
• Saint. Martin
• Saint Mary
• Tensas
• Terrebonne
• West. Baton Rouge
• West Feliciana

The Mississippi River is expected to Crest as follows:

Baton Rouge (flood stage is 35 feet): projection is 47.5 feet on afternoon of 5/23.We are at flood stage right now in Baton Rouge - the levees here protect the city until 48 feet. The expected crest in Baton Rouge is around the level of the record flood of 1927 (48 feet).

Donaldsonville (flood state is 27 feet): projection is 36 feet on evening of 5/23. This is within about two feet of the top of the levee and ties the record level (1927).

Red River Landing (flood stage is 68 feet): projection is around 65.5 feet on morning of 5/23. This is more than four feet above the highest level on record.

Reserve (flood stage is 22 feet): projection is 25 feet on morning of 5/24. Within one foot of major flood stage and within one foot of the record level (1929 - 26 feet).

Tallulah (flood stage is 43 feet): projection is around 57.5 feet on the morning of 5/20. Rose more than a foot in the last 24 hours and is projected to rise a foot a day for the next six days.

Vidalia (flood stage is 48 feet): projection is around 64 feet on the morning of 5/22. Right now it is at 52 feet - has come up a foot in the last 24 hours, and will continue to go up about a foot a day.

Recently, I've had several Louisiana Homeowners Insurance Claimants contact my office about their mortgage company holding onto their insurance money. Often times the person has a hurricane insurance claim, fire insurance claim or other homeowners claim and has completed repairs or has nearly completed repairs. For whatever reason the mortgage company is giving the homeowner the runaround on disbursing the money.

Although the mortgage company, as additional insured on the policy, has a right to make sure the repairs are made. Sometimes the mortgage company exceeds its authority. You can try to resolve this problem on your own by completing a complaint form with State of Louisiana Office of Financial Institutions. You can also call a Louisiana insurance dispute lawyer for assistance with this matter.

The House of Representatives approved a Senate bill to extend the National Flood Insurance Program for one year. The NFIP was to expire on September 30, 2010. The NFIP new expiration date will be September 30, 2011. The extension still requires the president's signature.

If you don't have flood insurance already, you should consider purchasing it especially considering the potential treat of Tropical Storm Matthew and other Storms to the Gulf Coast. All it takes is a few inches of water to cause major damage to your home and its contents.

Try the interactive tool below to estimate what a flood to your home could cost, inch by inch.

http://www.floodsmart.gov/floodsmart/flash/costofflooding/CostOfFlooding.swf

The National Weather Service in New Orleans has released a flash flood watch and warning for various parishes throughout southeast Louisiana and counties in southern Mississippi through Sunday evening... INCLUDING THE FOLLOWING AREAS... IN SOUTHEAST LOUISIANA... ASSUMPTION... LOWER JEFFERSON... LOWER LAFOURCHE... LOWER PLAQUEMINES... LOWER ST. BERNARD... LOWER TERREBONNE... ORLEANS... ST. CHARLES... ST. JAMES... ST. JOHN THE BAPTIST... ST. TAMMANY... UPPER JEFFERSON... UPPER LAFOURCHE... UPPER PLAQUEMINES... UPPER ST. BERNARD AND UPPER TERREBONNE. IN SOUTHERN MISSISSIPPI... HANCOCK... HARRISON... JACKSON AND PEARL RIVER.

The number of inches of Rainfall for specified durations (of 1, 3 and 6 hours) required to produce flash flooding in Louisiana Parishes and Mississippi Counties can be found at NOAA's flash flood guidance .
The National Flood Insurance Program three key steps for filing your flood insurance claim.

TO MAKE A FLOOD CLAIM:

Contact your agent or insurance company to file a claim, separate damaged from undamaged property. The insurance company's flood adjuster will need evidence of your structural and/or damaged content to assist in preparing his estimate. Take photograph of all damaged property (including any of the property you plan on throwing away). Take a photograph of the flood line and make an accurate list of all damaged content including date of purchase, cost and value before flood. If you have any receipts for the contents that were damaged, please save them. Finally, timely file your Proof of Loss form with your insurance company within 60 days of the flood.

Now that Hurricane season is here, there are several helpful publications prepared by The Louisiana Department Of Insurance that you may wish to review for informaiton about homeowners, flood and business interruption insurance as well as how to prepare for both before and after the storm. These publications include:

Hurricane Tracking Map and Preparedness Guide.pdf

After the Hurricane Hits.pdf

Weathering the Storm.pdf

What should I do if my property is flooded.pdf

Consumer 101 Fliers for Hurricane Season.pdf

The NFIP will not be reauthorized by Congress by midnight of May 31, 2010. Therefore, the Program will experience a hiatus - a period without authority to:

• issue new policies for which application and premium payment dates are on or after June 1, 2010, or
• issue increased coverage on existing policies for which endorsement and premium payment dates are on or after June 1, 2010, or
• issue renewal policies for which the renewal premium is received by the company on or after June 1, 2010, and after the end of the 30-day renewal grace period, until Congress reauthorizes the Program.

While awaiting Congressional reauthorization, FEMA is issuing the guidance contained in the attached bulletin Within this bulletin, is a set of Frequently Asked Questions concerning NFIP authorization.

The hiatus period is expected to end soon.

The National Oceanic and Atmospheric Administration is predicting an "active to extremely active" 2010 hurricane season for the Atlantic with 14 to 23 named storms this season, of which 8 to 14 will turn into hurricanes and 3 to 7 of those will grow into major hurricanes with sustained winds of at least 111 miles per hour.

Colorado State University forecasters have issued similar predictions: 15 named storms, 8 hurricanes and 4 major hurricanes.

Additional Resources:

National Oceanic and Atmospheric Administration

Colorado State University's Tropical Meteorology

If you are a homeowner in Louisiana, the possibility that your property may be affected by a flood is an unfortunate reality. There are physical measures a homeowner can take to protect his property against the threat of a flood, but the prospect that structural mitigation may not be enough should compel a homeowner to seek flood insurance. In this situation, National Flood Insurance Program (NFIP) policies most often come into play.

According to the NFIP, a flood exists "where two or more acres of normally dry land or two or more properties are inundated by water or mudflow." GOHSEP (Governor's Office of Homeland Security and Emergency Preparedness) expands upon this definition to describe how a flood is typically an external event. If the dam or levee behind your property breaks and your home is inundated with water, it is considered a flood. On the other hand, if your pipes burst and your home sustains water damage, it is not a technical flood. Insurance policies for property owners reflect this distinction. When a home is damaged by a legitimate flood, it is a matter for the NFIP to handle. If a home is affected by water, mud or other runoff material not resulting from an actual flood, then it would relate to homeowner's insurance, not the NFIP.

When a homeowner in a "moderate-to-low risk area" applies for flood insurance with the NFIP, he has more than one coverage option. Building and contents can be offered in one premium package, and the NFIP offers additional choices to alleviate the financial burden that flood insurance places on a homeowner. Many Louisiana homeowners do not fit this "moderate-to-low risk" standard. The Preliminary Digital Flood Insurance Rate Maps (DFIRMs) currently used by FEMA and the NFIP illustrate that much of the state is categorized as "high risk." Louisiana homeowners might balk at the price tag for flood insurance, but they may have no power to reject it. The NFIP stipulates that if you are in a high risk area, and your mortgage was acquired through a "federally regulated or insured lender," you must insure your property.

What happens once insurance has been obtained? When flood damage occurs, and the insured approaches the NFIP with a flood claim, he may find that his comprehensive insurance policy does not account for everything. Precious metals, septic systems, and temporary living expenses are among the items not covered by the NFIP. Louisiana homeowners should take care to scrutinize their coverage, or lack thereof, with their agent..

Cost is another factor that must be taken into consideration. NFIP policy rates vary, and a homeowner does have a number of coverage options to choose from, but flood claims are capped at $250,000 for building and $100,000 for contents. Moreover, the annual premiums, and the homeowner's deductible, are costlier in the A and V flood zones (high risk and coastal areas) which comprise much of Louisiana's geography. In a low-risk flood zone, for instance, a homeowner who purchases maximum coverage for building and contents on his property pays an annual premium of $348 or $388, depending upon whether or not he has a basement. The same policy in an A zone costs $2,647, and $5,714 in a V zone. If a homeowner feels that he is still left too vulnerable by the NFIP's coverage limits, he can also purchase "excess" flood insurance, which is offered through a number of general insurance providers in Louisiana. These supplemental policies offer coverage beyond the $250,000 and $100,000 maximums, but they are frequently more expensive. The Louisiana homeowner may find it necessary to purchase an NFIP policy, and perhaps supplemental insurance as a safeguard against flooding, but such precaution certainly does not come cheap.

Additional Resources:

Flooding & Flood Risks Overview

Louisiana Governor's Office of Homelland Security & Preparedness

Louisiana Mapping Project-Charting Our Coastal Future

FEMA- The National Flood Insurance Program

Today, Congress reauthorized the National Flood Insurance Program that expired last Sunday night when Congress failed to pass a temporary extension of the program. The reauthorization is not retroactive. The expiration did not affect existing coverage. However, for the two days period the NFIP did not issue new policies or renew policies, some may have sustained a lapse in coverage. Some home sales were even delayed because some lenders require flood insurance as a term of the mortgage.

The National Flood Insurance Act of 1968 provided insurance against inundation from rising waters or from the overflow of streams, rivers, or other bodies of water, or from tidal surges, abnormally high tidal water, tidal waves, tsunamis, hurricanes, or other severe storms or deluge.

The reauthorization extended the NFIP through March 28, 2010. Congress has extended the existing program several times while working on various proposals to reform the entire system. There are several pending overhaul bills in both the House and Senate. Some of the reform bills seek to expand the flood program to include wind coverage. The National Association of Insurance Commissioners has even promoted the idea of offering coverage for all catastrophic perils.

In the meantime, the NFIP only applies to flood. The NFIP has just released its May, 2010 Revision to the Flood Manual as well as Wind vs. Water Adjusting Practices.

Additional Resources:

NFIP Reauthorzation Through March 28, 2010

Expired NFIP Program Delays Louisiana Real Estate Transactions

NAIC's Proposal For Creating A Comprehensive National Plan To Address Catastrophic Risks

National Flood Insurance Act of 1968 and Flood Disaster Protection Act of 1973, As Amended