Historic Flooding Changes Insurance Protocol

Seal of Louisiana

Historic Flooding Changes Insurance Protocol

Historic Flooding | Emergency Rule 28 in Effect

On August 12, 2016, Governor John Bel Edwards declared a state of emergency within the state of Louisiana in response to the historic flooding. This state of emergency persisted from Friday, August 12, until Monday, September 12. The historic flooding resulted in so much damage to southeast Louisiana that some regions could be waiting weeks for electricity to be restored. Many residential homes were lost, businesses were forced to shut down, mail service was temporarily suspended, communication services were disrupted, residents were displaced from their homes, and belongings were lost as a result of the flood.

These events have affected the ability of citizens in these communities to pay their insurance premiums, access their policies, and communicate with their insurance agents and agencies. The flooding and after-effects pose an immediate threat to the public health, safety, and welfare of Louisiana citizens.

Due to a shortage of resources, many policyholders who have received, or will soon receive, claim payments from insurers will find that they are unable to repair or reconstruct their residential, commercial residential, or commercial property within a normal time frame. It is for these reasons, Executive Order No. JBE 2016-58, amended by Executive Order No. JBE 2016-67 was signed by Governor John Bel Edwards on September 12, 2016, and remains in effect through Wednesday, October 12, 2016.

Emergency Rule 28 – Suspension of Right to Cancel or Nonrenewal Residential, Commercial Residential, or Commercial Property Insurance Due To Historic Flooding.

What Does This Mean?

Emergency Rule 28 retroactively suspends statutory provisions of the Insurance Code concerning cancellations, terminations, nonrenewal, and non-reinstatements of insurance policies due to a material change in the risk, and also gives insurers more time to comply with other policy provisions. The emergency rule applies to all lines of insurance and all regulated entities.

The purpose of this rule is to ease the process of filing claims, recovering assets, and replacing or reconstructing damaged property due to the mass influx of claims and the shortage of resources needed to fulfill these actions.

Does This Apply To Me?

Emergency Rule 28 is applicable to insureds who as of 12:01 a.m. on August 12, 2016, had a personal residential, commercial residential, or commercial property insurance policy covering a dwelling, residential property, or commercial property located in one of the following parishes and who filed a claim as a result of any damage caused by the August 2016 flood or its aftermath:

  • Acadia, Ascension, Assumption, Avoyelles, Cameron, East Baton Rouge, East Feliciana, Evangeline, Iberia, Iberville, Jefferson, Davis, Lafayette, Livingston, Pointe Coupee, St. Charles, St. Helena, St. James, St. John the Baptist, St. Landry, St. Martin, St. Tammany, Tangipahoa, Vermilion, Washington, West Baton Rouge West Feliciana, and any such parishes that may receive a major disaster declaration by the President of The United States or such offering acting under his authority.

You can review the full Declaration of Emergency from The Louisiana Department of Insurance.

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