Most, not all, of the homes in the immediate New Orleans area require flood insurance in addition to homeowners coverage….flood insurance is mandated for all homes mortgaged by a federally entity and the refunding of the flood insurance program has been a political football with the program on the edge of and expiring several times over the past few years. With the massive storms that seem to be the norm now and the hugh costs associated with those storms we face shortages in available funds….
Early estimates suggest that Hurricane Sandy will rank as the nation’s second-worst storm for claims paid out by the National Flood Insurance Program. With 115,000 new claims submitted and thousands more being filed each day, the cost could reach $7 billion at a time when the program is allowed, by law, to add only an additional $3 billion to its onerous debt.
From the New York Times, Federal Flood Insurance Program Faces New Stress
Federal Flood Insurance Information, Flood Smart