Released: June 15, 2007
Commissioner of Insurance Jim Donelon will be in Lafayette Monday to discuss vital insurance issues during this hurricane season and the importance of flood insurance.
Commissioner Donelon is reminding residents that no matter where you live in Louisiana, you can be subject to the effects of severe weather. "Hurricanes Katrina and Rita caused an estimated $19.3 billion in insured losses in Louisiana," said Commissioner Donelon. "Over $74 million of those dollars were paid to policyholders with hurricane-related losses in Lafayette Parish, with over $165 million going to neighboring Vermilion Parish policyholders and more than $132 million paid in Iberia Parish," said the Commissioner.
Commissioner Donelon is urging policyholders to reevaluate their insurance needs to ensure they have the right coverage in the right amounts. He warns one of the biggest concerns statewide is that of adequate flood insurance since most homeowners insurance policies do not cover flooding. "In the past year, the number of flood insurance policies sold in Louisiana has increased by 25%, however, only 31% of the state's households are covered," said Commissioner Donelon.
According to the National Flood Insurance Program (NFIP), after a hurricane, some of the most damaging floods occur hundreds of miles from the coast. Commissioner Donelon said many people think that because their property is not located in a flood zone it won't flood. But according to the NFIP, 20 to 25% of all flood claims actually occur outside of the floodplain, in low to moderate risk areas.
Commissioner Donelon said flood insurance is offered at lower premiums for residential and commercial properties located in low to moderate risk flood zones and can be purchased by calling a local agent.
The NFIP states that over the past five hurricane seasons, from 2002 to 2006, insured flood losses in Louisiana totaled more than $13.4 billion. Hurricane season officially began June 1 and runs through