Many Louisiana homeowners face heightened flood risks across the state, including storm surge in coastal areas like New Orleans and overflowing rivers, bayous, and marshlands farther inland. Furthering the risk, a recent report from Redfin found that three Louisiana cities — New Orleans, Lafayette, and Baton Rouge — are among the 10 rainiest cities in the country based on annual precipitation totals.
Standard homeowners insurance in Louisiana excludes coverage for flood damage, leaving many homeowners at risk. Adding a flood insurance endorsement to your homeowners policy or purchasing separate Louisiana flood insurance is the best tool to protect your finances in the wake of severe flooding, regardless of where you live in the Pelican State.
Who provides flood insurance in Louisiana?
Louisianans have two main avenues for purchasing flood insurance: a private insurer or the National Flood Insurance Program (NFIP) administered by the Federal Emergency Management Agency (FEMA).
Private flood insurance options
Many of the same insurers that offer standard home insurance may also offer flood insurance in Louisiana. Private insurers may offer flood insurance as an endorsement (an optional add-on) to core policies or as a separate policy.
While qualifying for coverage through a private insurer can be more challenging if you live in one of Louisiana’s high-risk flood zones, such as along the Gulf Coast, private flood insurance is typically more affordable than the federal flood insurance program. You can often choose higher coverage limits through a private insurer, as well.
You might also be able to get coverage faster through a private insurer. NFIP policies have a strict 30-day waiting period before coverage kicks in, but many private insurers start covering your home in as few as 10 to 15 days. (This varies by insurer; always ask when getting quotes.)
National Flood Insurance Program
Homeowners can also purchase coverage through the FEMA-run National Flood Insurance Program, which provides flood insurance to homeowners who live in high-risk floodplains, some of whom can’t get approved for policies from private insurers. The federal government doesn’t sell insurance. Rather, the NFIP relies on an extensive network of participating insurers to sell and service its policies.
NFIP policies have strict waiting periods and coverage limits:
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Waiting period: 30 days before coverage kicks in
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Coverage limits: $250,000 for the structure (dwelling coverage) and $100,000 for your belongings (personal property coverage)
Is it mandatory to have flood insurance in Louisiana?
The state of Louisiana does not legally mandate flood insurance, but some homeowners may still be required to carry it. That’s because lenders require any homeowners with a federally backed mortgage who live in a high-risk flood zone — called a Special Flood Hazard Area (SFHA) — to carry flood insurance.
Even if you don’t have an active government-backed mortgage, it may be worth getting flood insurance in Louisiana, especially if you live in a high-risk flood zone (such as Zone A, Zone AE, or Zone VE). Given Louisiana’s heavy rains, low-lying floodplains, and history of hurricanes and tropical storms, flood insurance can be a smart idea even if you live in a moderate- or low-risk area. FEMA reports that roughly 25% of all flood insurance claims come from homeowners in low- or moderate-risk flood zones.
How much is flood insurance in Louisiana?
The median cost of flood insurance in Louisiana is $786, per the latest NFIP data. However, how much you will pay for flood insurance depends on the flood zone you live in, the construction of your home, and your coverage limits, among many other factors.
The table below shows the NFIP’s median flood insurance cost data across various Louisiana cities and parishes. Keep in mind that these are medians representing an expansive location. Flood zones don’t follow city boundaries, so prices can vary significantly. Many Louisiana homeowners pay thousands of dollars for flood coverage.
|
City |
Parishes |
Median flood insurance cost |
|
New Orleans |
Orleans Parish |
$797 |
|
Baton Rouge |
East Baton Rouge Parish, West Baton Rouge Parish |
$571 – $630 |
|
Lafayette |
Lafayette Parish |
$734 |
|
Lake Charles |
Calcasieu Parish |
$799 |
|
Houma |
Terrebonne Parish |
$797 |
Source: National Flood Insurance Program
In recent years, flood insurance costs in Louisiana have skyrocketed, prompting many homeowners to drop their coverage. You might find that your flood insurance quotes are significantly higher than the most current FEMA data show. The best way to find out how much flood insurance costs in Louisiana is to get a quote through the NFIP and private insurers, specific to where you live and your home.
Understanding how Risk Rating 2.0 impacts cost
FEMA revised how it calculates flood insurance premiums in 2021–2022, implementing a system called Risk Rating 2.0. Rather than looking at flood maps broadly to determine risk (and rates), FEMA calculates the cost of coverage based on the individual house.
To do this, FEMA considers factors like proximity to the water, how high the home’s foundation sits, and how much your specific home would cost to rebuild (called its replacement cost). FEMA also considers your location’s flood frequency and exposure to various flood types (river overflow, heavy rainfall, storm surge, and coastal erosion).
Some parts of Louisiana participate in FEMA’s voluntary incentive program, Community Rating System (CRS), wherein communities work together to improve floodplain management practices beyond the bare minimum requirements of the NFIP. Jefferson Parish, for example, recently improved its floodplain management practices, resulting in a 35% discount for policyholders here.
To learn more about the flood zone for your specific address, visit the Louisiana Flood Maps online portal or FEMA’s Flood Map Service Center.
What is FEMA’s 50% rule?
New homes and commercial buildings constructed in Louisiana must meet the latest flood safety codes, but the Pelican State is home to plenty of old, historic homes and buildings that were constructed before modern building codes. If you own an older home, that doesn’t mean you suddenly have to make major upgrades to meet these guidelines.
Rather, you’re only required to bring your home up to the latest flood safety standards if you’re remodeling your home or rebuilding your damaged home, and the construction costs total 50% or more of your home’s current market value (the value of the home specifically, not the value of the land it sits on). This is the 50% rule from FEMA.
Bringing your home up to code in a high-risk flood zone could mean physically lifting the house higher off the ground so flood waters can pass beneath it. Angi, a home services company, reports that costs can exceed $25,000.
How to mitigate flood damage in Louisiana
Though Louisiana faces severe flood risks, you don’t have to simply accept your fate. You can take several steps to mitigate flood damage (and possibly even qualify for an insurance discount). Here are some of the ways you can mitigate flood damage to your Louisiana home:
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Lift key equipment: Move critical equipment, including your HVAC unit, electrical panel, or hot water heater, off the ground and onto elevated platforms.
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Install water-blocking systems: Seal basement walls and cracks in your foundation, install sealed-gasket flood doors on first-floor doors, and add waterproof vent covers to your lower-level vents.
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Let water pass through: Install flood vents in your garage and foundation walls to let water pass through, and install a sump pump to pump flood water away from your home.
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Slope your yard: Modify the slope of your yard away from your home to encourage water to drain away from your foundation. Keep drainage pathways clear.
Frequently asked questions
Does a standard Louisiana homeowners insurance policy cover flood damage?
No, standard homeowners insurance in Louisiana does not cover flood damage. Instead, to protect against damage from rising surface water and storm surge, Louisianans should consider adding a flood insurance endorsement to their home policy or purchasing a separate flood policy through a private insurer or the National Flood Insurance Program.
What is the difference between flood insurance and water backup coverage?
The difference between flood insurance and water backup coverage is all about where the water originates. Flood insurance is designed specifically for external surface water that rises from the ground up, typically from heavy rainfall, storm surge, and river flooding. Water backup coverage, an optional endorsement for standard home insurance, instead covers damage from water that backs up from sewers, drains, and sump pumps.
How can Louisiana residents verify if their home sits in a high-risk flood zone?
You can enter your address into the Louisiana Flood Maps online portal or FEMA’s Flood Map Service Center to determine if your home sits in a high-risk flood zone. This can help you understand the level of risk for your home and whether you’ll be required to carry flood insurance (if you have a government-backed mortgage).
Does flood insurance pay for damage to detached structures like sheds and fences?
Federal flood insurance through the National Flood Insurance Program covers detached garages but typically excludes other detached structures, such as sheds and fences. You may be able to get broader coverage that includes insurance for other structures by purchasing a flood insurance policy through a private insurer.
