Does Home Insurance Cover Flooding in New Orleans?

Many homeowners are still shocked to learn that flood damage is not covered under homeowners insurance policies. Standard home insurance policies in New Orleans exclude damages caused by flooding, even when the flood stems from a natural disaster like a hurricane or heavy rainfall.

When flood damage leads to insurance claim disputes, a property damage attorney in New Orleans can be an essential advocate for the policyholder. At The Morgan Law Group, we represent homeowners throughout Louisiana, ensuring they are heard and their rights are protected when insurance companies delay, underpay, or deny valid home and flood insurance claims.

Here’s what you need to know about what home insurance does and doesn’t cover when it comes to flooding in New Orleans.

Does Homeowners Insurance Cover Flooding in New Orleans, LA?

The short answer is NO. 

Standard homeowners insurance policies in Louisiana do not cover damage caused by flooding. That includes storm surge, heavy rain accumulation, or levee overflows that result in water rising from the ground level.

This is because flood damage is classified differently from water damage in insurance language. While a burst pipe inside your home might be covered, water entering your home due to external flooding is a separate peril and one that requires flood insurance in New Orleans.

To be clear, most homeowners insurance policies will cover wind-driven rain or water damage caused by roof damage during a storm, but any water that enters from the ground up is not covered. This distinction is critical for New Orleans residents, who often face both hurricane-force winds and catastrophic flooding during storm season.

What Can New Orleans Home Insurance Cover?

Even though flooding itself isn’t covered, your homeowners insurance policy may still be relevant if additional damage is caused by a covered peril, such as wind or fallen debris.

Here’s what homeowners insurance may cover after a natural disaster:

• Wind or hail damage to your roof, siding, or windows
• Water damage caused by wind-driven rain through a broken window or roof
• Tree damage to your home or detached structures caused by strong winds
• Temporary housing costs, if your policy includes loss of use and the damage stems from a covered peril

However, if your home is inundated with floodwaters, the cost to repair your flooring, walls, electrical systems, and personal belongings will likely not be paid by your homeowners insurance policy. This is why flood insurance is a critical layer of protection for all New Orleans homeowners.

If your insurer disputes which parts of the damage are covered and which are not, it’s time to involve New Orleans property damage attorneys who understand how insurers interpret these clauses and how to challenge unfair insurance claim decisions.

Should I Buy Flood Insurance in New Orleans? 

Every homeowner in New Orleans should carry flood insurance. That includes properties located outside the designated high-risk flood zones.

Most of New Orleans is at or below sea level, which means the entire city is at risk of flooding. Even homes in areas that have never flooded before are vulnerable due to the city’s aging drainage infrastructure, low elevation, and proximity to water sources like Lake Pontchartrain, the Mississippi River, and the Gulf of Mexico.

Flooding in New Orleans can happen from:

• Hurricanes and tropical storms
• Heavy rainfall, overwhelming pumps and drainage systems
• Levee or canal failures
• Storm surge and tidal flooding

Relying solely on homeowners insurance in this region is a financial risk. Flood insurance provides dedicated coverage that can pay to repair your structure and replace your belongings, even if the flooding is widespread and catastrophic.

How Much Is Flood Insurance in Louisiana?

The cost of flood insurance in New Orleans varies depending on your property’s elevation, location, age, and structural features. Other pricing factors include your chosen coverage limits, deductible, and whether the policy is through the National Flood Insurance Program (NFIP) or a private insurer.

On average:

• NFIP flood insurance in Louisiana costs $955 annually, but some high-risk zones may see higher rates.
• Private flood insurance may offer higher limits or additional coverage options but could be more expensive, especially in flood-prone areas.

The Federal Emergency Management Agency (FEMA) launched Risk Rating 2.0, a newer pricing model for NFIP policies that more accurately reflects each home’s individual flood risk. While this allows some homeowners to benefit from reduced rates, others may face increases, especially in high-risk areas, like New Orleans.

Whether you buy from NFIP or a private carrier, flood insurance remains far less expensive than paying out of pocket for flood damage.

How Much Will a Flood Insurance Cover? 

NFIP flood insurance typically covers two main categories:

Dwelling Coverage (up to $250,000)

• Foundation and structural repairs
• Electrical and plumbing systems
• HVAC equipment
• Appliances and water heaters
• Permanently installed carpeting and cabinets

Personal Contents Coverage (up to $100,000)

• Furniture and clothing
• Electronics
• Valuables and essential belongings
• Portable appliances and area rugs

Private flood insurance can offer higher limits and more flexible terms. Some policies include additional living expenses (ALE), coverage for basements, or replacement cost coverage for contents, which are not included in basic NFIP policies.

Always review your flood policy carefully; exclusions and limits can vary greatly, especially between NFIP and private carriers. If you’re unsure what your policy covers, consulting a property damage attorney before disaster strikes can help you avoid future surprises.

How Can You Avoid a Denied Flood Insurance Claim? 

Even though you already prepared yourself ahead with enough insurance coverage for your home, including flooding coverage, one of the most frustrating experiences for policyholders is receiving a flood insurance denial after significant water damage. 

Whether your claim is denied due to missing documentation, disputes over the cause of the damage, or policy exclusions, these denials can leave you financially and emotionally drained.

Here’s how you can have a solid flood damage claim from the start:

• Keep Detailed Records: Take “before and after” photos of your property. Document upgrades, maintenance, and any past water issues. In the event of a flood, photograph the damage immediately before cleanup begins.
• Notify Your Insurer Promptly: NFIP policyholders must file a Proof of Loss within 60 days of the flood (or the extended deadline, if granted by FEMA). Missing this deadline is a common reason for denial.
• Keep Receipts for Repairs and Living Expenses: Even temporary fixes and hotel stays should be documented. Some private flood policies reimburse these costs.
• Don’t Discard Damaged Items Prematurely: Your insurer may require inspection of damaged property before removal. Hold on to important belongings until your adjuster has reviewed the damage.

Insurance companies sometimes misclassify flood damage, underpay claims, or rely on technicalities to issue denials. Property damage attorneys can step in, negotiate with the insurer, and litigate when necessary to ensure you receive the compensation you’re entitled to.

Having Flood Insurance Coverage Isn’t an Option in New Orleans

Flood insurance in New Orleans is a must. Whether you’re a new homeowner or you’ve lived in your house for decades, it’s crucial to understand the difference between homeowners insurance vs. flood insurance, and to ensure you’re covered under both.

Unfortunately, even the most prepared homeowners can run into trouble when insurers deny valid flood claims. When that happens, it helps to have experienced insurance claim attorneys on your side. The Morgan Law Group has been advocating for Louisiana policyholders for years, helping them secure the compensation they need to rebuild after devastating events.

If your flood insurance claim has been denied, delayed, or underpaid, don’t hesitate to reach out to us for help. Call our New Orleans office today at (504) 641-3894 or contact us using our online form for a free consultation.