Cost of Flood Insurance in Louisiana and How Coverage Works
Cost of Flood Insurance in Louisiana and How Coverage Works
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On average, flood insurance in Louisiana costs $744 per year, or $62 per month.
Flood insurance protects your home and belongings from damage caused by flooding. Flood insurance is not required in Louisiana. However, if you live in an area that is at high risk of flooding, such as along the bayou or the Mississippi River, you may need to buy coverage in order to qualify for a mortgage.
You can buy flood insurance from the National Flood Insurance Program (NFIP) or a private insurer. Private flood insurance has higher coverage limits, but only the NFIP guarantees coverage to everyone.
Cost of flood insurance in Louisiana
The average price of a National Flood Insurance Program flood insurance policy in Louisiana is $744 per year. The biggest impact on your rates is how high above the water your home is. Any company selling an NFIP flood policy will give you the same price because NFIP flood insurance is based on a formula set by FEMA.
The most expensive city in Louisiana for flood insurance is Morgan City, with an average price of $1,195 annually. The cheapest city is Bossier City, with an average price of $429 per year.
Prices for flood insurance in Louisiana cities
Average cost | Cost per $100k coverage | |
|---|---|---|
| Alexandria | $536 | $208 |
| Baton Rouge | $544 | $189 |
| Bossier City | $429 | $164 |
| Broussard | $610 | $194 |
| Central | $765 | $275 |
Data includes all cities in LA with more than 1,000 policies in force
Remember that even within a given city, prices may vary based on the elevation of your home.
Do you need flood insurance in Louisiana?
Flood insurance is not required by law for Louisiana residents.
Homeowners who live in certain high-risk flood areas may need to get flood insurance in order to qualify for a federally backed mortgage.
High-risk areas include those along the coast, low-lying areas like bayous or places close to another body of water, like the Mississippi, Red or Atchafalaya rivers. Even areas that are simply lower elevation than surrounding areas can be at risk. Louisiana gets about 60 inches of rain per year, which makes it the wettest state in the continental U.S.
If you're not required to have flood insurance, it may still be worth it to buy coverage. Louisiana homeowners insurance and renters insurance policies do not cover flood damage, and 25% of flood insurance claims are made by people outside high-risk flood zones. What's more, flood insurance claims are very common in Louisiana. It's routinely among the states with the most flood claims in the country.
Louisiana flood insurance coverage
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Louisiana residents can buy flood insurance through the NFIP. The NFIP offers coverage limits of up to $250,000 for the structure of their home and $100,000 for its contents. (Private flood insurance policies may offer more coverage.)
However, NFIP flood insurance also has rules about what is covered. Generally, the structure and anything built into your home is protected. So is any property that's inside your home, though the rules are more complicated for anything in your basement or crawlspace.
Items covered by NFIP flood insurance
- Standard home systems: This includes your home's electrical wiring and plumbing, heating and air conditioning and gas.
- Carpeting and installed features: Wall-to-wall carpeting, shelves and built-in bookcases are all covered by flood insurance.
- Foundation, walls and support structures: The structure of your house is included. So are staircases, as long as they are built into your house.
- Detached garage: Covers up to 10% of your total policy dwelling coverage.
- Portable appliances and personal property: Appliances like your oven, refrigerator and washing machine are generally covered. The same applies to your other belongings. Note that anything in this category is subject to a separate coverage limit.
Damage to your home's structure is paid at replacement cost value (RCV), meaning depreciation is not taken into account — as long as you live in a single-family home and it is your primary residence. Personal property is paid at actual cash value (ACV), meaning depreciation is taken into account.
For example, if some of your walls and furniture were damaged due to flooding during Hurricane Ida in 2021, you would get enough money to completely replace the walls with brand new ones. However, you'd only get enough money to buy furniture that was in the same condition as the pieces you lost.
What's not covered by flood insurance in Louisiana?
Flood insurance doesn’t cover everything. Your car, jewels or gold and silver, as well as property outside your home like a pool or garden, are not covered. Flood insurance also doesn't cover damage from moisture, mildew, rot or anything damaged by earth movement, like a sinkhole.
Flood insurance does not reimburse you for a hotel if you can't stay in your home. It also does not cover lost business income. For example, if you operated a day care in your home, and you evacuated because of Hurricane Laura in 2020, you can claim damage to your property and supplies, but not any money you lost because your business was closed.
Items and expenses not covered:
- Anything outside your home (swimming pool, landscaping, septic systems)
- Cars and most other vehicles
- Currency and precious metals
- Living expenses or loss of use
- Loss of business revenue
- Any personal property in a basement
Causes of damage not covered:
- Moisture, mildew or mold that could have been avoided
- Damage caused by earth movement
If you need coverage for any of the above, your best option is likely a private flood insurance provider.
How are flood insurance rates set?
The price you'll pay for flood insurance is primarily based on your home's elevation, how far it is from the water and any nearby mitigation factors such as levees. Flood insurance rates also depend on how high the lowest level in your house is.
For example, if your house and your neighbor's house are at the same elevation in the Atchafalaya River Basin, but they have a basement and you don't, they will pay more for flood insurance.
Just like other types of insurance, your flood insurance rates will be how much coverage you buy and your deductible. More coverage or a lower deductible results in higher rates.
Factors that affect your flood insurance rates:
Location of your home | Other factors | |
|---|---|---|
| Elevation above sea or river level | Height of your home's lowest floor/whether you have a basement_ Distance from body of water | Whether you have flood vents |
| Flood mitigation tools (e.g., levees) | Coverage levels and deductible |
How to get flood insurance in Louisiana
Buying flood insurance in Louisiana works much like buying any other kind of insurance. You’ll contact an insurance agent who can help you decide on coverage levels and provide you with a quote. You may need to submit a proof of elevation, a document that certifies how high above water your house is.
So while you should always collect multiple quotes for home, renters and auto insurance, you don't need to do so to get NFIP flood insurance. Remember that there is almost always a 30-day waiting period for NFIP insurance, so if you're concerned about flooding during Louisiana's rainy summer and fall seasons, make sure to buy a plan ahead of time.
If you don't qualify for NFIP coverage, or the coverage doesn't meet your needs — for example, if you need more than $250,000 of dwelling coverage — you may want to get coverage from a private flood insurer. Private flood insurance offers higher limits and may have better rates, especially for lower-risk homes.
Methodology
ValuePenguin found average flood insurance rates in Louisiana by comparing total premiums, number of policies in force and coverage levels, all provided by the Federal Emergency Management Agency (FEMA).
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