Preparing for Hurricane Season
Louisiana REALTORS • June 3, 2021
Louisiana REALTORS® has partnered with the FEMA outreach and DOTD education teams to provide REALTORS® with helpful information regarding flood insurance, disaster preparation and recovery through our monthly
Flood Risk & Recovery Series. In June, FEMA and DOTD were joined by representatives from GOHSEP, the Louisiana Department of Insurance, Louisiana Watershed Initiative, Fannie Mae and the Professional Insurance Agents of Louisiana to discuss what to do before, during and after a hurricane to be fully prepared. Please see below for a few highlights, resources and FAQs that were addressed in the session. This is great information to share with your clients as the hurricane season approaches.
Before A Storm:
Insurance Tips/Tricks:
- If you have a home insurance policy, make sure you find and understand what you are covered for. If you have a paper file, save a backup on a flash drive so that it will be accessible no matter what. Look at the declarations page of your policy for:
- Exclusions, specifically wind/hail - if you have this, you'll want to call your insurance agent to adjust
- Deductibles, specifically the hurricane or named storm, wind/hail and flood deductibles to see what you will have to pay out of pocket for and if they need to be adjusted
- Actual cash value vs. replacement cost - it's often recommended to go with "replacement cost," as it allows for you to be covered for the full replacement cost of your items as opposed to their depreciated values
- There is a
difference between standard insurance and flood insurance. FEMA will only offer assistance for presidentially-declared disasters, but flood insurance can be paid out any time a flood occurs. It's usually also a much larger payout from your flood insurance policy than from FEMA assistance.
- If you do not have flood insurance, get it, especially if you are in a high-risk area. It takes 30 days for flood insurance to take effect, so don't wait.
- If cost is what's holding you back from getting insurance, get what you can afford. Some coverage is better than none.
- If you are a renter, get content only flood insurance - your property's owner probably has the building insured, but contents only insurance will help you cover the cost of replacing any damage to your possessions that was caused by flooding.
Preparing Your Property:
- Mitigate as best you can. If your home is below the base of elevation or if you have previously filed for assistance, you may be eligible to apply for a grant to help prevent damage.
- Repair, remove and secure anything in your yard that could potentially become airborne.
During A Storm:
- Stay calm and be safe.
- Stick to your pre-determined plan.
- Protect yourself and then help others.
After A Storm:
- Assess your property and contact your insurance agent right away if you have any damage.
- Be sure to take photos of everything - do not throw anything away.
- Once documented, secure what you can on your property.
- Once you have filed your claim, document all points-of-contact and conversations you have with representatives, appraisers, etc.
- If preparing to apply for any sort of grant or financial aid, be sure you have:
- A copy of your declarations page from your policy
- A copy of all of your policies in chronology of coverage
- Statement of Loss from insurance carrier
- Check stub from final insurance payout
- Proof of property ownership (title, owner of record, etc.)
- Supplemental occupancy proof (utilities, driver's license, etc.)
- Note that you can only receive financial assistance from one agency - your status will be checked before any sum is granted.
Resources:
- GetAGameplan.org - Updated after every disaster, this resource from GOHSEP provides a wealth of helpful information like preparedness guides, evacuation routes and more.
- Disaster Response Network - Fannie Mae offers this excellent resource to connect homeowners and renters who have experienced a disaster with HUD-trained counselors to give advice on things like FEMA aid, insurance claims, SBA claims, etc. for up to 18 months. Call (877) 833-1746 for assistance.
- KnowYourOptions.com - This Fannie Mae hub explains everything you need to know about the insurance claims process in easy-to-understand terms.
- NAIC Home Inventory App - This resource from the National Association of Insurance Commissioners will help you take and record an inventory of your belongings so that you can submit an accurate insurance claim.
FAQs:
NAR’s latest consumer guide, “10 Tips for Unpacking Smartly After a Move,” was developed to help ease the burden buyers may feel when surrounded by boxes. For your clients on the cusp of a move, the guide suggests establishing a priority unpacking order, wiping down each room before unpacking, discarding boxes quickly, having garbage and donation bags at the ready, and more. Share the new guide along with the companion guide “10 Tips for Packing Smartly for a Move.” As a reminder, all guides in this series are available for download—in both English and Spanish—on facts.realtor . Please allow up to two weeks for the Spanish version of the latest resource to be translated and uploaded. For ease of reference, below is a list of the most recent guides: NEW: 10 Tips For Unpacking Smartly After A Move UPDATED : Multiple Listing Services Overcoming Roadblocks to a Sale or Purchase How Solar Impacts a Real Estate Transaction Navigating Interest Rate Shifts Thank you for your continued engagement with the “Consumer Guide” series and for sharing the resources with prospective clients to ensure they have the information they need to find success in their home buying or selling journey. Remember that these guides are for informational purposes only and are not meant to enact or change any existing NAR policy. Check out the next consumer guide on identifying homebuying wants vs. needs.
Thinking about buying a home? Discover how homeownership can help build wealth, increase financial stability, and create lasting value.
From the Louisiana Department of Insurance: During a press conference today with Governor Jeff Landry, Insurance Commissioner Tim Temple announced that registration for the next round of the Louisiana Fortify Homes Program (LFHP) will open at 8 a.m. on Monday, June 1, and will include 3,000 grants. The registration period for this lottery will be open for three weeks, closing at 5 p.m. on Friday, June 19. During the press conference, Gov. Landry signed HB 1187 by Rep. Paul Sawyer, which will allow Louisiana Citizens Property Insurance Corporation to transfer $50 million in additional Katrina bond assessment funds to the LFHP. Combined with the $30 million in funding the program will receive through taxes and fees on insurance entities, the LFHP will receive a total of $80 million this year. “By lowering overall losses, we can reduce insurance and reinsurance costs, draw more insurers into the market, motivate existing companies to write additional policies and lower insurance premiums,” said Commissioner Temple. “That is exactly what the Louisiana Fortify Homes Program is designed to do.” The list of coastal parishes that are eligible to participate is expanding to include Acadia, Jefferson Davis and Lafayette parishes. Additionally, homeowners who live in the portions of Ascension, Calcasieu, Iberia, Livingston, St. Martin, St. Tammany, Tangipahoa and Vermilion parishes that were previously not included in the program will now be eligible to participate. A map showing the full list of eligible parishes is available on FortifyHomes.La.Gov . “Louisiana is the fastest growing state in the country for Fortified roofs, and that growth is not by accident—it is the result of strong support from Governor Landry and legislators like Chairman Talbot, Chairman Firment and Representative Sawyer, targeted program design, and a clear recognition that strengthening homes is one of the most effective ways to reduce insurance losses,” said Commissioner Temple. “At the end of the day, this program is about more than just roofs. It is about protecting families, it is about strengthening communities, and it is about putting Louisiana in a stronger position—both physically and economically—to face the challenges ahead.” To participate in the lottery, homeowners must register during the June registration period. Homeowners who registered for a previous round but were not selected must register again to participate. People who register on the last day of the registration period have the same chance of being selected as those who register on the first day, so there is no need to rush to register as soon as the period opens. When registering, homeowners will need to upload their homestead exemption, insurance policy declarations page that includes wind coverage, and flood insurance declarations page if the residence is in a flood zone. Homeowners who need assistance obtaining a copy of their homestead exemption should contact their parish tax assessor. Homeowners can contact their homeowners and flood insurance companies or agents for a copy of their policy declarations page. Homeowners are required to create a profile in the LFHP system before registering for the lottery and may do so by visiting the LFHP website and clicking the Login button. Homeowners who previously created a profile may use the same one for this and future rounds. Once the lottery registration period closes, the LFHP will randomly select 3,000 participants and send email notifications to registrants about whether they were selected to participate. These selection notices will be sent via email beginning on Monday, June 22. There are several program requirements that homeowners should be aware of before registering. Those interested in the program are encouraged to review eligibility information and frequently asked questions at FortifyHomes.La.Gov to determine whether their home meets the requirements for the program. If selected to participate in the grant program, homeowners will be financially responsible for having the home evaluated by a FORTIFIED-certified Evaluator as well as costs for the roof upgrade including permits, inspections and construction costs beyond the amount of the grant The LFHP provides grants of up to $10,000 for homeowners to upgrade their roofs to standards set by the Insurance Institute for Business & Home Safety. The program helps Louisiana homeowners strengthen their roofs to better withstand hurricane-force winds.
