Hurricanes, flood and home insurance in Louisiana

What do homeowners policies leave out?

LDI’s post-disaster guide says loss caused by flood, surface water, water that backs up through sewers or drains, and earth movement is not covered by most homeowners policies. FEMA says the same: most homeowners insurance does not cover flood damage, and it does not satisfy a mortgage lender’s or federal disaster assistance flood requirement.

Wind needs its own check. LDI notes that some policies, especially along the coast, exclude wind and hail, and that Citizens offers that coverage as a supplement. Read the declarations page for whether wind is covered and for the wind, hail, named-storm or hurricane deductible (explained below).

How does flood insurance work?

Who can buy. NFIP flood insurance is available if your community participates in the program (FEMA, FloodSmart). Policies are sold by private insurers and agents, but the NFIP sets the rates, so the same property gets the same price from each insurer.

What it covers. FEMA lists these limits for a homeowner:

What sets the price. FEMA says three things: where the building is, how it is built, and its replacement cost. Discounts exist for elevated machinery and proper flood openings.

When you must buy. Flood insurance is required if the home is in a Special Flood Hazard Area (SFHA) and has a government-backed mortgage. Some lenders require it elsewhere. If your property received federal disaster assistance before, you must carry flood insurance to receive aid again, and that requirement stays with the property, not the owner. Flood zones A and V are high risk. Zones B, C and X are moderate or low risk, and FEMA still recommends coverage there.

Waiting period. The City of New Orleans warns that a new flood policy takes 30 days to become active. Buy before a storm is forecast, not after.

See also flood insurance and homeowners insurance.

What is a named-storm deductible?

Many Louisiana policies replace the regular deductible with a percentage deductible for hurricane, named-storm, or wind and hail damage. Louisiana R.S. 22:1337 sets these rules for owner-occupied one- and two-family policies:

• The separate deductible applies once per calendar year to all named-storm or hurricane losses.
• For a second storm in the same year, the insurer may charge the remaining part of the separate deductible, or the all-perils deductible, whichever is greater. Insurers may ask for receipts for earlier losses.
• For new policies after January 1, 2023, the insurer must give you a state-prescribed form listing each deductible as a percentage, a dollar amount or both, and ask you to sign it. A new form is required if the percentage changes.

LDI’s guide says hurricane deductibles “typically run between two and five percent” of the insured value. That guide is undated, so check your own policy.

Example (arithmetic only): a home insured for $300,000 with a 2% hurricane deductible leaves you paying the first $6,000 of covered storm damage. At 5%, the first $15,000.

What is Louisiana Citizens?

The Louisiana Citizens Property Insurance Corporation is a nonprofit created by statute to operate residual market plans “solely for applicants who are in good faith entitled, but are unable, to procure insurance through the voluntary market” (R.S. 22:2291). It runs the Coastal Plan and the FAIR Plan (R.S. 22:2295).

Citizens says it is “state-mandated to be more costly than private property insurance companies.” It also works to move policies to private carriers (depopulation). Citizens published a personal lines rate change effective January 1, 2026, so ask for a current quote rather than relying on old prices.

Can a stronger roof lower costs?

Louisiana pays for hurricane-resistant roofs in two ways.

1. Fortify Homes grants. Under R.S. 22:1483.1, the Louisiana Fortify Homes Program (LFHP) can pay to retrofit a roof to the Insurance Institute for Business and Home Safety (IBHS) FORTIFIED roof standard. According to LDI’s rules (version of May 29, 2026):

• Grants are awarded by lottery, subject to available funds.
• The grant equals the actual cost of the roof retrofit, up to $10,000. The Commissioner may update that amount.
• The home must be a residence with a homestead exemption, not a condominium or mobile home, and in good repair unless damaged by wind, hail or a hurricane.
• The home must have a wind insurance policy, and a flood policy if it is in an SFHA.
• You pay for a certified evaluator, get three bids from approved contractors, and finish within 90 days of the eligibility notice.
• Funds are paid to the contractor only after IBHS issues a FORTIFIED certificate.

Grants received on or after January 1, 2025 are exempt from Louisiana state income tax (R.S. 22:1483.1(F)). Apply at ldi.la.gov/fortifyhomes.

2. Insurance discounts. R.S. 22:1483 requires insurers that file rates to give an actuarially justified discount, credit or deductible adjustment to owners who build or retrofit to the FORTIFIED standards. You must hold the IBHS certificate and show it to the insurer.

What about New Orleans?

The city says New Orleans “is an area that has previously flooded.” Its hazard plan states that most of the city is below sea level or surrounded by flood levees, so the entire city is at risk of flooding, and rainwater must be pumped out. Areas of highest risk on the city’s flood map are zones AE and VE.

Three official points matter for a buyer:

• The city’s Floodplain Management office can tell you whether a property is in an SFHA (floods@nola.gov), and it recommends flood coverage even outside one.
• A standard flood policy does not include contents, says the city.
• Through the Community Rating System, Orleans Parish policyholders get a premium discount. The city’s October 2, 2025 statement says it moved from Class 7 (15% savings) in 2021 to enough credits in 2023 for Class 6 (20%), while also calling Class 6 its goal. Ask your agent which class applies to your quote.

See the New Orleans guide for the city’s other facts.

What must a seller disclose about floods?

Louisiana law requires a seller of residential property to complete a property disclosure document on the Louisiana Real Estate Commission’s form or one with at least its minimum language (R.S. 9:3198). The Commission’s January 2026 form has a full flood section. It asks whether the land or any structure has flooded, the flood zone and its source, whether the home is in an SFHA, whether flood insurance exists (with the declarations page attached), any private or NFIP claims, prior federal flood assistance, and Road Home grant covenants. See seller disclosure in Louisiana.