Devoted to the Insurance industry and all thing related

The Insurance Commissioner For Louisiana Jim Donelon is on a mission to educate homeowners about flood insurance.  According to the Insurance Journal he wants “100 percent of the citizens in his state to have flood insurance coverage for their homes.”  He’s currently touring through the state including speaking at the convention for the Louisiana Chapter of the National Association of Insurance and Financial Advisors.

According to Donelon “currently about 31 percent of all homeowners in Louisiana carry flood insurance.”  While that is a decent amount of households it’s not enough in Donelon’s and many other’s eyes.  Most of the people with flood insurance live in flood prone areas but Donelon said that according to the Federal Flood Insurance Program “20 to 25 percent of the claims they pay are in areas that are considered low to moderate flood risk, meaning their elevations are above those typically requiring flood insurance for loan eligibility.”

 

Donelon broke down his overall message about the importance of flood insurance:

“My message to people of central Louisiana … and for the entire state for that matter on this tour is: Everyone in our state should access the federal flood insurance program.  It's the best insurance value one can buy in Louisiana, as we are one of three states that are net consumers of the program, meaning, we pay less in premiums than we receive back in payments in flood losses.”

It’s unfortunate that Louisiana, Texas and Florida are net consumers of flood insurance due to the fact that they’re so much more prone to filing flooding claims.