BATON ROUGE — The Louisiana Department of Insurance on Monday clarified insurance guidelines for policyholders affected by Tropical Storm Arthur. 

LDI officials released the following answers to frequently asked questions about policies following flooding and heavy rain:

Flood Damage-

Q: Is flood damage covered by my homeowners' insurance or property insurance policy?
A: Most flood policies in Louisiana are separate insurance policies written through FEMA’s National Flood Insurance Program (NFIP), although some people do have private flood insurance outside of the NFIP. Flood insurance covers instances when water enters your property from the ground up due to storm surge, heavy rainfall or overflow of a body of water. Non-flood water damage is generally covered by your homeowners' insurance.

Q: How do I file a flood insurance claim?
A: If you have flood insurance and need to file a claim, get your flood insurance policy number and contact your flood insurance agent or insurer first. If you have an NFIP policy but can’t locate your insurance agent or company, you can contact the NFIP at floodsmart.gov or 800-621-3362 for help identifying your flood insurance provider. If you need other assistance, contact the LDI at 800-259-5300, LDI.La.Gov, or on the LDIConnect App.

Q: What are the NFIP’s coverage limits?
A: The NFIP’s coverage limits are up to $250,000 for residential building coverage and $100,000 for residential contents. For non-residential policies the coverage limits are up to $500,000 for non-residential building coverage and $500,000 for non-residential contents.

Q: Does a Named Storm Deductible apply to a flood insurance policy?
A: No. The NFIP does not use a Named Storm Deductible for its flood polices and private flood insurance does not, either.

Q: Does a Named Storm Deductible apply to a flood insurance policy?
A: No. The NFIP does not use a Named Storm Deductible for its flood polices and private flood insurance does not, either.

Q: What happens if my home or property flooded but I don’t have flood insurance?
A: Unfortunately, if you do not have flood insurance, you will likely not have any insurance coverage for flood damage related to the event. Federal or state assistance may be available. For now, the best thing to do is to report your damage at damage.la.gov. This will help ensure Louisiana receives federal assistance for areas affected by the storm.

Wind/Tornado Damage & Deductibles-

Q: How do I file a property insurance claim?
A: If you have homeowners or other property insurance and need to file a claim, contact your insurance agent or insurer first. If possible, get your policy number from your policy’s declarations page and have an initial assessment of the damage ready. Make sure your insurer knows how to contact you.
Take photos and video of the damage before cleaning up, and don’t throw away damaged items. You have an obligation to mitigate further damage by making temporary repairs like putting a tarp over a damaged roof or boarding up a broken window. Keep your receipts for these expenses. Do not hire contractors before consulting your homeowners insurer to make sure the services are covered.
If you need other assistance, contact the LDI at 800-259-5300, LDI.La.Gov, or on the LDIConnect App.

Q: What is the difference between an All Perils (standard) Deductible and a Named Storm (Hurricane) Deductible?
A: A deductible is the amount of money you agree to pay out of pocket relative to a claim. If the cost to repair damages does not exceed the deductible, you, as the policyholder, will be responsible for paying the costs to repair the damages.
Homeowners policies in Louisiana typically have multiple types of deductibles. The All Perils Deductible is what you pay for damage or loss caused by covered events like fires. The Named Storm Deductible is generally between 2% and 5% of the insured property and is what you pay for damage or loss from hurricanes and other named storms, like Tropical Storm Arthur. Your policy may have a separate Wind and Hail Deductible, which is what you pay for damage or loss from other wind and hail events.

Q: Are homeowners' insurers charging Named Storm Deductibles for tornado or other wind damage from Tropical Storm Arthur?
A: In most cases, your policy’s Named Storm Deductible will apply to damage that occurred while Tropical Storm Arthur was still a tropical storm, including damage caused by a tornado spawned by Arthur. If your home was damaged after Tropical Storm Arthur was downgraded, your policy’s Named Storm Deductible will likely apply as well, depending on your policy language.
Contact your insurance agent or company for any questions about how your insurance policy addresses this. If you think your insurance company is treating you unfairly, call the Louisiana Department of Insurance Office of Consumer Services at 1-800-259-5300.

Q: Will I have to pay both a Named Storm Deductible and an All Perils Deductible?
A: No. In Louisiana, insurers can charge either a Named Storm Deductible or an All Perils Deductible for a single named storm event, but not both. If your claim cost exceeds the cost of your policy’s Named Storm Deductible, your insurer should pay for the rest of your claim costs that are in excess of your deductible, as required by your policy.

Q: If my insurer applies a Named Storm Deductible on my Tropical Storm Arthur claim, will I pay another Named Storm Deductible or an All Perils Deductible if my property is damaged by another named storm this year?
A: Named Storm Deductibles can only be fully applied once per calendar year as long as you don’t change insurance companies. For example, if your Named Storm Deductible is $5,000 and your Tropical Storm Arthur claim is over $5,000, then you cannot be charged a Named Storm Deductible again this year, and your All Perils Deductible would apply for future events.
If your claim is for $4,000, then your insurer could charge the remaining $1,000 Named Storm Deductible if your property is damaged by another named storm this calendar year. Even if your damage costs do not exceed your Named Storm Deductible, you should consider filing a claim so those costs apply to a potential future named storm event later this year.

Q: What happens if my home or property was damaged by Tropical Storm Arthur but I don’t have homeowners or property insurance?
A: Unfortunately, if you do not have homeowners or property insurance, you will likely not have any insurance coverage for the event. Federal or state assistance may be available. For now, the best thing to do is to report your damage at damage.la.gov. This will help ensure Louisiana receives federal assistance for areas affected by the storm.

Q: Who can I ask if I have any other questions about an insurance claim?
A: The Louisiana Department of Insurance is here for you. Contact us at 800-259-5300, LDI.La.Gov, or on the LDIConnect App.

Flooded/Damaged Vehicles-

Q: What type of insurance covers my flooded or water-damaged vehicle?
A: If your vehicle flooded or was damaged by Tropical Storm Arthur, that damage would be covered by an auto insurance policy that has comprehensive coverage. If you do not have comprehensive coverage on your vehicle, the damage is unlikely to be covered by your insurance.

Q: How do I file an auto insurance claim?
A: If you have private passenger auto insurance and need to file a claim, contact your insurance agent or insurer first. If possible, get your policy number from your policy’s declarations page and have an initial assessment of the damage ready. Make sure your insurer knows how to contact you.
Take photos and video of the damage before cleaning up, and don’t throw away damaged items. You have an obligation to prevent further harm to the vehicle.
If you need other assistance, contact the LDI at 800-259-5300, LDI.La.Gov, or on the LDIConnect App.

Q: Does my flood insurance, homeowners insurance or property insurance cover my vehicle if it was damaged by Tropical Storm Arthur?
A: No. If your vehicle receives storm damage, such as flood damage or a tree branch falling on your vehicle, that would be covered by an auto insurance policy with comprehensive coverage. If you do not have comprehensive coverage on your vehicle, the damage is unlikely to be covered.

Avoiding Contractor Fraud-
Q: What are some steps I can take to avoid contractor fraud after a storm?
A: If damage to your home has left you in need of repairs, be extra careful:
- Get bids from at least three different contractors.
- Do not do business with a contractor who cannot show proof of insurance.
- Only do business with a contractor that is bonded, which will offer you some protection if the job is not satisfactorily completed or supplies purchased to make your repairs were not paid for.
- With all contractors, request at least two references who have had similar work done by them in the last year. Follow through by calling each reference and discussing the contractor’s work in some detail.
- You can confirm a contractor’s license with the Louisiana Contractors Board, and check the Better Business Bureau for complaints against them.
- Be on the lookout for out-of-state con artists who may have just come into town to take advantage of the local situation.

Q: What should I do before letting a contractor start repair work?
A: Before any work is started, request a clearly worded, itemized contract:
• Review it with the contractor and make sure you understand and agree with its contents before the contract is signed.
• The contract should include the following information:
o A separate breakout of labor and cost of materials
o The contractor’s responsibility to get all required permits
o The date the project is to begin and the date it is to be completed
o Proof of insurance coverage, especially general liability and worker’s compensation insurance, from the start date to the finish date
o A written guarantee that the work area will be left in its original condition
• If possible, ask that the contractor’s insurance carrier mail a certificate of insurance coverage directly to you.
• Don’t do business with a company that demands money up-front.