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Commissioner Donelon to discuss storm awareness in Lafayette
Released: Aug. 1, 2007 Commissioner of Insurance Jim Donelon will be in Lafayette on Aug. 6 to discuss vital insurance issues during this hurricane season and the importance of flood insurance. He is speaking at the monthly meeting of the Lafayette Parish Insurance Exchange at noon at Don's Seafood restaurant downtown. Although the National Oceanic and Atmospheric Administration (NOAA) has downgraded their original forecast of four to six major hurricanes to three to five hurricanes becoming Category 3 strength or higher, current reports indicate that we are in an upward swing in frequency of named storms and hurricanes. NOAA Climate Prediction Center projects a 75 percent chance that the Atlantic Hurricane Season will be above normal this year. We are entering into the peak of the hurricane season from August through October. Commissioner Donelon is reminding residents that they can be subject to the effects of severe weather. "Hurricanes Katrina and Rita caused an estimated $19.3 billion in insured losses in Louisiana," said Commissioner Donelon. "Over $74 million of those dollars were paid to policyholders with hurricane-related losses in Lafayette Parish, with over $165 million going to neighboring Vermilion Parish policyholders and more than $132 million paid in Iberia Parish," said the Commissioner. Now is the time for policyholders to reevaluate their insurance needs. One of the biggest concerns is that of adequate flood insurance since most homeowners insurance policies do not cover flooding. "In the past year, the number of flood insurance policies sold in Louisiana has increased by 25 percent, however, only 31 percent of the state's households are covered," said Commissioner Donelon. Recent FEMA reports indicate that 100,000 new flood insurance policies were sold in Louisiana after the 2005 hurricanes, but 14,613 of those new policies had not been renewed as of the end of April 2007. "Losing over 14 percent of new flood policies is a significant concern," said Donelon. According to the National Flood Insurance Program (NFIP), after a hurricane, some of the most damaging floods occur hundreds of miles from the coast. Commissioner Donelon said many people think that because their property is not located in a flood zone it will not flood. But according to the NFIP, 20 to 25 percent of all flood claims actually occur outside of the floodplain, in low to moderate risk areas. Flood insurance is offered at lower premiums for residential and commercial properties located in low to moderate risk flood zones and can be purchased by calling a local agent. The NFIP states that over the past five hurricane seasons, from 2002 to 2006, insured flood losses in Louisiana totaled more than $13.4 billion. Hurricane season officially began June 1 and runs through Nov. 30. Storm Awareness Statistics for Lafayette Hurricane Katrina and Rita Statistics for Lafayette and Neighboring Parishes:
TOTAL for Katrina & Rita in Lafayette Parish: $74.1 million
TOTAL for Katrina & Rita in Vermillion Parish: $165.2 million
TOTAL for Katrina & Rita in Iberia Parish: $132.3 million
TOTAL for Katrina & Rita in St. Martin Parish: $11.3 million
TOTAL for Katrina & Rita in St. Landry Parish: $25.2 million
TOTAL for Katrina & Rita in Acadia Parish: $42.6 million 2007 Storm Awareness Fact Sheet � 31% of the Louisiana�s households have flood insurance. • Flood insurance policies have increased 25% in Louisiana in the past year, to 495,200 policies. � 20 to 25% of all flood claims occur outside of the floodplain, in low to moderate flood risk areas. • Louisiana’s close proximity to the Mississippi River and Gulf of Mexico, as well as the 50 rivers, streams and bayous in the state leave many of our 1.6 million households at an increased flood risk. • In the last 10 years, Louisiana has experienced 11 flood-related, federally declared disasters. • There is a 26% chance of experiencing a flood during the life of a 30-year mortgage, compared to a 9% chance of fire. • Losses due to flooding are not covered under typical homeowners and business insurance policies. • Over the past five hurricane seasons, from 2002-2006, insured flood losses in Louisiana totaled more than $13.4 billion. • Approximately 96% of flood insurance claims in Louisiana have occurred during hurricane season over the past 10 years. • Some of the most damaging floods after a hurricane occur hundreds of miles from the coast. • Homeowners can purchase a flood insurance policy that offers a maximum of $250,000 coverage on the building and $100,000 coverage for contents. However, excess flood insurance coverage can be purchased for properties that need to be insured at a higher value. • Renters and lessees who meet underwriting criteria are eligible for contents-only coverage. • There is typically a 30-day waiting period before a flood insurance policy takes effect. • The Atlantic hurricane season starts June 1 and runs through Nov. 30. • The Atlantic hurricane season typically peaks between Aug. 1 and late October. • The 2007 Atlantic hurricane season will be active with 13 to 17 named storms, 7 to 10 of which are expected to become hurricanes, according to the National Oceanic and Atmospheric Administration (NOAA). • Of the 7 to 10 hurricanes forecast, 3 to 5 will be major ones of Category 3 or higher, with winds over 111 miles per hour, according to the NOAA annual forecast. • Hurricane Katrina: $16.7 billion in Louisiana insured losses; Over 720,000 claims filed. • Hurricane Rita: $2.6 billion in Louisiana insured losses; Over 201,000 claims filed. |
