RS 1344 - Residential flood coverage; policy types
A. In addition to excess flood insurance, insurers may issue any of the following types of residential flood coverage:
(1) Standard flood insurance, which covers only losses from the peril of flood in a manner equivalent to that provided under the National Flood Insurance Program, including standard flood deductibles and adjustment of losses.
(2) Preferred flood insurance, which includes all of the following:
(a) The same coverage as standard flood insurance.
(b) Coverage for losses from water intrusion originating from outside the structure that are not otherwise covered by a flood policy.
(c) Coverage for additional living expenses.
(d) A requirement that any loss under personal property or contents coverage be adjusted only on the basis of replacement costs up to the policy limits.
(3) Customized flood insurance, which includes coverage that is broader than the coverage provided under standard flood insurance.
(4) Flexible flood insurance, which covers losses from the peril of flood and may also include coverage for losses from water intrusion originating from outside the structure, that is not otherwise covered. Flexible flood insurance shall include one or more of the following provisions:
(a) An agreement between the insurer and the insured that the flood coverage is in a specified amount, such as coverage that is limited to the total amount of each outstanding mortgage applicable to the covered property.
(b) A requirement for a separate named storm or hurricane deductible.
(c) A requirement that flood loss to a dwelling be adjusted in accordance with R.S. 22:1264 or adjusted only on the basis of the actual cash value of the property.
(d) A restriction limiting residential flood coverage to the principal building defined in the policy.
(e) A provision including or excluding coverage for additional living expenses.
(f) A provision excluding coverage for personal property and contents as to the peril of flood.
(5) Supplemental flood insurance, which may provide coverage designed to supplement a flood policy obtained from the National Flood Insurance Program or from an insurer issuing standard or preferred flood insurance pursuant to this Section. Supplemental flood insurance may provide coverage for any of the following:
(a) Jewelry.
(b) Art.
(c) Deductibles.
(d) Additional living expenses.
(e) Other coverage permitted by law.
B. An insurer writing residential flood policies may issue flood insurance that covers losses from the peril of flood using either or both of the following:
(1) A definition of "flood" other than that in R.S. 22:1341.
(2) Terms and conditions other than those used in the policy types described in Subsection A of this Section.
C. Notwithstanding Subsections A and B of this Section, insurers offering private flood insurance may continue using policy forms filed and approved before January 1, 2022.
Acts 2021, No. 77, §1, eff. Jan. 1, 2022.