Louisiana Bill and Flood Insurance Coverage

Recently, a Louisiana bill that is designed to make it easier for private insurers to offer flood insurance in the state was sent back to the House to look at amendments that were added by the Louisiana Senate.

The House Bill 577 was introduced by Rep. Scott McKnight, and it is backed by Insurance Commissioner Jim Donelon. The bill would help give Louisiana residents choices for flood insurance that are not sold by the National Flood Insurance Program.

A legislative analysis of the bill claims it “would permit insurers to file flood rates and immediately begin using them. Insurers could subsequently adopt new rates provided they file change paperwork with the LDI within 30 days of use.”

This streamlined rate system would stay in place until Jan. 1, 2027, and then it would revert to the previous system.

“All rates would be subject to regulation by the LDI with the same rigor as with its ‘prior approval’ analysis of other property and casualty rates. The bill is modeled on a similar Florida law that has increased the market share of private flood insurance in that state,” the legislative digest states regarding the bill.

There are a couple of items in the bill that require insurance producers to give written notices to residential private flood insurance applicants that inform flood insurance applicants that “(a) Coverage under the National Flood Insurance Program is provided at a subsidized rate. (b) If the applicant discontinues coverage under the National Flood Insurance Program, the full risk rate may apply to the property if the applicant later seeks coverage under the National Flood Insurance Program.”

Insurance producers are also required to inform applicants that do not already have flood coverage that coverage is available from the NFIP.

Amendments that were added to the bill require insurers to add policy language that describes the similarities and differences between private flood insurance and coverage from the NFIP.

For Flood Insurance Rates Quotes, please call us at 888-620-1954. We offer multiple quotes and free coverage consultation to help you get the flood policy you need fast.