News Summary
Louisiana faces a critical deadline as the National Flood Insurance Program (NFIP) is set to expire on September 30, 2025. The state has received the highest federal flood insurance payouts in the nation, totaling $20.7 billion. Without congressional action, many families could lose flood coverage as hurricane season approaches. Key lawmakers are pushing for a multi-year reauthorization and tax credits to help residents cope with rising insurance costs, emphasizing the urgent need for legislative action to protect homeowners from flood risks.
New Orleans – Louisiana is facing a critical deadline as the federal flood insurance program, the National Flood Insurance Program (NFIP), is set to expire at midnight on September 30, 2025. This expiration poses a significant risk to the state, which has received the highest amount of federal flood insurance payouts in the nation, totaling $20.7 billion across more than 361,000 claims since the program began. Without congressional action, no new NFIP policies can be issued, and existing policies cannot be renewed, potentially leaving many families vulnerable as hurricane season approaches.
Orleans Parish leads the state’s flood claims, with 99,383 claims amounting to $7.2 billion in payouts. Following closely is Jefferson Parish, which has filed 89,234 claims resulting in $3.5 billion in payouts. Other parishes with significant claims include St. Tammany Parish (28,487 claims), St. Bernard Parish (20,491 claims), and East Baton Rouge Parish (18,795 claims). Additional parishes with notable claims include Livingston Parish (12,655 claims), Terrebonne Parish (11,025 claims), Calcasieu Parish (7,950 claims), and St. John the Baptist Parish (7,468 claims).
Louisiana surpasses both Florida and Texas in the number of claims and the amount paid nationwide. With approximately 450,000 active NFIP policies in the state, the implications of the program’s potential expiration could be far-reaching. If NFIP expires, families in flood zones could struggle to secure or keep flood insurance, which could lead to stalled home sales and greater risk before impending storms.
The NFIP’s impending expiration raises additional concerns regarding the Federal Emergency Management Agency’s (FEMA) ability to cover expenses after disasters. FEMA’s borrowing authority from the U.S. Treasury is at risk of dropping dramatically, from $30.4 billion to just $1 billion. This reduction would severely limit the federal government’s capability to pay claims, particularly during a time when flood-related damage costs the U.S. between $180 billion and $496 billion each year, with 32% of claims originating from areas outside high-risk flood zones.
Past lapses of the NFIP have disrupted many home transactions, historically delaying or canceling thousands of closings. For example, during a 2010 lapse, around 1,400 home transactions were affected on a daily basis. In light of these potential disruptions, U.S. Senator Bill Cassidy is advocating for a multi-year reauthorization of the NFIP through the end of 2026. He also plans to address FEMA’s Risk Rating 2.0 program, which has raised premiums for low- and middle-income homeowners.
In response to rising insurance costs, Cassidy has proposed a 33% refundable tax credit aimed at assisting families facing increased premiums. This proposal is part of a broader push to ensure that flood insurance remains accessible and affordable for Louisiana residents, particularly in the face of the imminent hurricane season.
Statistics indicate that since 1999, 99% of U.S. counties have experienced flooding, yet only 4% of homeowners nationwide carry flood insurance. This discrepancy highlights the persistent risk that many homeowners face, particularly in flooding-prone areas like Louisiana. As authorities grapple with the impending NFIP expiration, the focus remains on securing the necessary legislative action to safeguard families and homes from the devastating effects of floods.
Deeper Dive: News & Info About This Topic
- Business Report
- Google Search: National Flood Insurance Program
- American Press
- Wikipedia: Flood Insurance
- Louisiana Illuminator
- Encyclopedia Britannica: Flood Insurance
- WDSU
- Google News: Flood Insurance Louisiana
- Fox 8 Live
- The Advocate
Author: STAFF HERE NEWORLEANS WRITER
NEW ORLEANS STAFF WRITER The NEW ORLEANS STAFF WRITER represents the experienced team at HERENewOrleans.com, your go-to source for actionable local news and information in New Orleans, Orleans Parish, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as French Quarter Festival, New Orleans Jazz & Heritage Festival, and Essence Music Festival. Our coverage extends to key organizations like the New Orleans Chamber of Commerce and Greater New Orleans, Inc., plus leading businesses in energy, healthcare, and education that power the local economy such as Entergy, Ochsner Health, and Tulane University. As part of the broader HERE network, including HEREShreveport.com, we provide comprehensive, credible insights into Louisiana's dynamic landscape.
