NFIP: August Flood Will Be Fourth Most Costly Event

Insurance Commissioner Jim Donelon says he’s been told the August flood event will be the fourth most costly event for the National Flood Insurance Program.

“Katrina number one, Sandy number two, Ike number three, and this or Ivan. This will be Ivan equivalent to the National Flood Insurance Program,” Donelon said.

Donelon says there have been 28,000 claims filed with the NFIP and expects the number to grow past 30,000. He says most of the calls they are getting lately are from people who thought their homeowners insurance covered flooding. He says people should know what they’re covered for and what they’re not.

“I’m not proud to say this. This event has me calling sometime today after this meeting my agent to see that I have the max contents coverage on my house,” Donelon said.

Donelon says Louisiana has the third most flood insurance policies in the nation, at 450,000 policies. He says people are also benefitting from comprehensive coverage on their vehicles. He says State Farm has already reported 18,000 claims have been made for flooded vehicles.

“We anticipate that ultimately 60,000 to 65,000 insured vehicles will be totaled and paid for by the insurance that’s in place for those vehicles,” Donelon said.