Does Flood Insurance Cover Hurricane Damage?
Flood insurance covers flood damage resulting from a hurricane in many cases; however, it is not uncommon for an insurance company to deny a flood claim, especially if you live in a high-risk area, like Louisiana.
You will have to review the details of your policy and determine the exact cause of the hurricane damage. A Louisiana hurricane damage lawyer can analyze your insurance policy and help you file a claim or appeal a denial of coverage.
Will Flood Insurance Cover Hurricane Damage?
A flood insurance policy contains specific language that describes the types of water damage it covers. Typically, flood insurance covers flood-related damage to your dwelling, as well as its contents, such as personal property. So, these policies may cover damage associated with hurricanes.
For example, when hurricanes cause floods, the damage to the walls and floors often applies for coverage under a flood policy. In other instances of water damage, such as when rain enters through a roof damaged by a hurricane, you may have to seek coverage through your homeowner’s insurance policy. It depends on your particular policy.
There is a chance that an insurer denies coverage for a hurricane-related flood, arguing that the damage stemmed from something else, such as high winds. In that case, you may need to purchase yet another separate policy for wind damage.
Is Flood Insurance the Same as Homeowner’s Insurance?
Flood insurance exists apart from homeowner’s insurance. A Louisiana insurance claims lawyer can explain some fundamental differences between a standard homeowner’s insurance policy and a flood policy.
What Homeowner’s Insurance Covers
While a standard homeowner’s insurance policy does not cover hurricane-related flooding or flooding from storm surges, it may cover other types of damage resulting from hurricanes.
For example, homeowner’s insurance may cover:
- Structural damage due to falling trees
- Electrical wiring damage
- Roof damage
- Surface damage, such as broken windows and shingles
- Foundational damage
You must review the policy from your insurance provider before hurricane season to ensure you understand your protections.
What Flood Insurance Covers
A separate flood insurance policy should cover damage to your property from rising waters from heavy rainfall or a sewer backup. These policies may also cover damage from storm surges associated with natural disasters.
Policy coverage can vary from one company to the next. Ensure you understand your policy before facing damage from hurricanes.
Homeowners must purchase flood insurance coverage through a separate policy, as their homeowner’s insurance typically does not cover such damages.
Can You Just Buy Hurricane Insurance?
In Louisiana, as in other storm-prone states, no insurance policy explicitly covers hurricane damage. Property owners have to equip themselves with different types of policies to cover various forms of damage that can result from hurricanes and strong storms.
The challenge when making an insurance claim after a hurricane often lies in proving the cause of specific forms of damage and linking them to the terms of your policy.
Is Flood Insurance Required?
Many mortgage companies require Louisiana residents to purchase flood insurance in addition to a standard homeowner’s policy, due to the flood damage exclusions that these policies typically contain. The Federal Emergency Management Agency (FEMA) offers such coverage through the National Flood Insurance Program (NFIP).
You may also purchase additional flood insurance through a private insurer. You can never be too prepared, since hurricane costs can total billions of dollars.
Meeting a Hurricane Deductible
Your homeowner’s insurance policy likely includes a specific deductible that kicks in when hurricane-force winds strike. Unlike standard deductibles, these hurricane deductibles represent a percentage of your home’s insured value, typically ranging from 1% to 5%.
So, for a $300,000 home with a 2% hurricane deductible, you’d pay $6,000 out-of-pocket before insurance coverage begins for hurricane damage.
In Louisiana, storm deductibles can take three forms depending on wind speeds:
- Named storm deductibles (39+ mph winds)
- Hurricane deductibles (74+ mph winds)
- Wind/hail deductibles (damage from any high winds)
A 2021 state law mandates that insurers can only charge commercial property owners one hurricane deductible per calendar year, regardless of how many hurricanes strike.
Even if multiple storms hit, policyholders don’t have to pay multiple deductibles in the same year.
How a Hurricane Lawyer Can Help With a Denied Flood Insurance Claim
Having your hurricane damage claim denied or underpaid by your insurance company can be extremely frustrating and stressful, especially after experiencing the trauma of a major storm. When the insurer isn’t holding up their end of the policy, it’s critical to have an experienced Louisiana hurricane lawyer representing your interests.
Hurricane lawyers thoroughly understand the claims process, as well as the bad faith tactics insurers sometimes employ to underpay or outright deny legitimate claims.
Your attorney can explain why a flood damage claim would be denied. Lawyers can also explain if flood insurance covers hurricane damage in more detail.
They can investigate your specific situation, rebuild your file with supporting evidence, and forcefully appeal the denial with a comprehensive understanding of Louisiana insurance laws and regulations.
Conducting In-Depth Investigations
Your lawyer will thoroughly inspect and document all hurricane-related damage to your property. They’ll gather evidence such as photographs, videos, models, expert reports, and more to build a strong claim file.
Identifying Policy Violations
Insurers sometimes deny or underpay claims in violation of the policy terms. Your attorney will review your policy line by line to identify any improper denials or bad-faith conduct by the insurer.
Aggressively Negotiating Settlements
Insurers are far more likely to make a lower initial offer if you’re unrepresented. Having legal counsel involved puts pressure on the insurer to take your claim seriously and negotiate a fair settlement.
Representing You in Mediation or Litigation
If the insurance company won’t pay what your claim is reasonably worth, your lawyer can pursue mediation or take the matter to court by filing a formal lawsuit against the insurer.
Talk to Us About Flood Damage From a Hurricane
Property owners in Louisiana often ask, “Does flood insurance cover hurricane damage?” In many cases, yes, this form of insurance will help you recover after a natural disaster. However, we know that flood insurance, along with additional policies, can be confusing.
A Louisiana insurance lawyer can ensure you understand your rights and options every step of the way. At Laborde Earles, our legal team recovered $11.8 million in the largest verdict for a Louisiana storm claim.
Don’t settle for a denied, delayed, or underpaid claim—hire legal representation to compel your insurer to uphold their end of your policy. Call Laborde Earles today for a free consultation.
