Does Flood Insurance Cover Hurricane Damage?

Property owners in Louisiana often ask, “Does flood insurance cover hurricane damage?” Flood insurance usually covers flood damage resulting from a hurricane; however, it is not uncommon for an insurance company to deny a flood claim. 

However, you will have to review the details of your policy and determine the exact cause of the hurricane damage. A Lafayette hurricane lawyer can analyze your insurance policy and help you file a claim or appeal a denial of coverage. 

The Difference Between Homeowner’s Insurance and Flood 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. A Louisiana insurance claims lawyer can explain some basic 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

What Flood Insurance Covers

Homeowners have to purchase flood insurance coverage through a separate policy since their homeowner’s insurance will not cover such damages. A flood insurance policy contains specific language describing what kind of water damage is covered. Typically, flood insurance covers flood-related damage to your dwelling, as well as its contents, such as personal property. 

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 that a hurricane damaged, 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 hard winds. In that case, you may need to purchase yet another separate policy for wind damage. 

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 such 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 provider. You can never be too prepared since hurricane costs can reach billions of dollars of damage. 

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 provides important consumer protection. Louisiana Statute § 22:1267.1, enacted in August 2021, 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 can’t be forced 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 along with the bad faith tactics insurers sometimes utilize to underpay or outright deny legitimate claims. 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.

Laborde Earles Can Determine if Your Flood Insurance Covers Your Hurricane Damage

Homeowner’s 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.