Louisiana Insurance Commissioner Jim Donelon said he is pushing state residents to reevaluate their insurance coverage with an eye to getting flood insurance.

"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," Mr. Donelon said.

His announcement today warned that "one of the biggest concerns statewide is that of adequate flood insurance since most homeowners insurance policies do not cover flooding."

He noted that according to the National Flood Insurance Program, 20-25 percent of all flood claims actually occur outside of the floodplain, in low-to-moderate risk areas.

Mr. Donelon mentioned that 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.

He also released a 2007 Storm Awareness Fact Sheet.

Thirty-one percent of Louisiana's households have flood insurance.

Flood insurance policies have increased 25 percent in Louisiana in the past year, to 495,200 policies.

Twenty-to-25 percent 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 the state's 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 percent chance of experiencing a flood during the life of a 30-year mortgage, compared with a 9 percent 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 percent 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 November 30.

The Atlantic hurricane season typically peaks between August 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, three-to-five will be major ones of Category 3 or higher, with winds over 111 miles per hour, according to the NOAA annual forecast.

Hurricane Katrina created $16.7 billion in Louisiana insured losses with over 720,000 claims filed.

Hurricane Rita caused $2.6 billion in Louisiana insured losses with more than 201,000 claims filed.

This article originally appeared in The National Underwriter P&C. For the complete article, please click here

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