More than 60,000 homes have been damaged in 20 parishes impacted by recent flooding in Louisiana. According to Louisiana’s Office of Homeland Security and Emergency Preparedness,  75% of homes are a “total loss” in Livingston.

U.S. flood events are largely paid for by the FEMA’s National Flood Insurance Program (NFIP) and applicable primary insurance. The office of Louisiana Governor John Bel Edwards reports over 86,500 have already registered for disaster assistance with FEMA.

While it is expected that larger primary insurers affected by the floods, like Allstate, State Farm and Liberty Mutual, will likely retain much of the risk, smaller insurers in the state will likely have reinsurance responding at lower retentions. Smaller carriers, like 1347 Property Insurance, could see losses trigger reinsurance programs. In a statement, 1347 Property Insurance said “…based on our early analysis… The Company believes that it may have recoveries available to it under its per-risk reinsurance program.”

FEMA is in the process of analyzing the full effects of the flood and any potential changes to Louisiana’s flood maps. Changes in flood maps could put more homeowners in high-risk zones, which would increase premiums for affected policyholders.

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