Annual flood damage averages between $179.8 and $496 billion in the U.S. This amount of money is equivalent to between 1% and 2% of the nation’s GDP.
The immediate aftermath of a flood should be focused on ensuring the safety of your family, friends, and neighbors—not worrying about legal matters. Concerns like contacting a New Orleans flood damage attorney can come later.
Negligence Claim
Once these immediate concerns are addressed, property owners should quickly evaluate their legal options. In some cases, they may have the right to file a negligence lawsuit.
If another party’s negligence (lack of care) causes flood damage, a civil claim may be an option. Common causes of flood-related lawsuits include:
- Negligent Infrastructure Maintenance: If a government or private entity failed to properly maintain levees, dams, or drainage systems, and this negligent failure contributed to flooding, you may be able to file a claim for damages.
- Construction Defects: If the flood occurred due to construction defects, such as improperly designed or built drainage systems, the contractor or developer could be held responsible. The strict liability rule often applies in construction defect matters, which means these claims are easier to prove than negligence claims.
- Private Property Flooding: If your property was damaged due to a neighbor’s property (e.g., a poorly maintained stormwater system that caused runoff to flood your home), a civil action may be an option.
Remember that these claims are complex, especially if the defendant is a city, county, or other government institution.
Insurance Claim
Typically, flood damage is considered an ‘act of God’ rather than negligence. In such cases, insurance companies are legally required to handle claims according to policy terms.
Homeowners with flood insurance have the right to file claims and seek compensation for covered losses. The insurance company has the right to raise rates and otherwise respond to the filing in a reasonable way.
Most homeowners have FEMA National Flood Insurance Program (NFIP) policies. The typical NFIP policy covers:
- Damage to your home’s structure (foundation, walls, electrical systems, plumbing, etc.),
- Personal property damage (e.g. furniture, electronics, and clothing), and
- Additional living expenses if your home becomes uninhabitable.
Most NFIP policies do not cover temporary repairs, except those specifically listed in the policy, such as outdoor landscaping and basement flood damage, particularly if the home’s first floor is undamaged.
Terms vary significantly among non-NFIP policies. A New Orleans flood damage lawyer should review these policies to determine a homeowner’s best possible options. Most people are aware of this, but it is worth mentioning. Typical homeowners insurance policies do not cover flood damage. So, if you live in a flood-prone area, whether or not it is officially a flood zone, some kind of flood insurance is practically a must-have.
Homeowners’ rights include obligations, such as the obligation to follow proper insurance claim procedure. This procedure varies among different policies, but it usually includes:
- Notifying the insurer ASAP,
- Documenting the damage through photos or videos,
- Compiling a complete list of damaged items and their value (include their emotional value as well as their financial value), and
- Filing an official claim.
Usually, the insurance company has a legal duty to immediately acknowledge the claim, launch an investigation, usually by sending an adjuster to the site, within two weeks, and make a settlement offer within thirty days.
Speaking of legal duties, the insurance company also has a responsibility to restore damaged property to its pre-flood condition. For example, if flood water damages part of the basement floor, the remainder must match the repaired portion in terms of color, style, and so on. Public health concerns and local regulations often play a role in this area.
Government Assistance
Widespread floods often trigger state and/or federal disaster declarations. FEMA or other government assistance often comes with strings attached or is difficult to obtain. Nevertheless, we suggest that homeowners pursue this option. This assistance often includes:
- DAGs (Disaster Assistance Grants): FEMA grant money is available for home repair and cover losses to essential personal property. Assistance with temporary housing may be available as well, if your property is uninhabitable.
- Low-Interest Loans: These FEMA-sponsored loans are available to cover additional expenses not covered by insurance or grants. These additional expenses include making home repairs, replacing destroyed appliances, or paying for legal or administrative costs related to flood recovery.
- Public Assistance Program: Some business owners and other such individuals may be able to access FEMA’s Public Assistance Program. This fund helps local governments and certain nonprofit organizations pay costs related to flood mitigation and recovery.
At the risk of sounding like a broken record, to apply for government assistance, property owners must follow a set process. This task usually begins when a homeowner registers with FEMA or other relevant agencies. Frequently, substantial funds are available. However, bear in mind that government assistance may not cover all expenses or repair costs. Insurance covers the remainder.
We should also mention liability issues once again. If an insurance company believes a negligent person or entity caused damage, the company may deny coverage. Likewise, if the company believes FEMA or other money is available, the company may reduce its settlement offer accordingly.
Preserving Your Rights
Knowing what to do immediately after flooding reduces further property damage, speeds up the recovery process, and helps ensure fair compensation. Here are some steps to consider:
- Ensure Safety First: Before returning to your home, make sure that it is safe to do so. Floodwaters may have weakened structures, contaminated water may present health risks, and electricity may still be a hazard. Wait until authorities give the official “all clear” word before returning to your property.
- Document the Damage: Take photographs or videos of the property damage, both inside and outside the home. Include items that are damaged or destroyed. This documentation will be crucial for your insurance claim, and you may also want to get quotes from contractors to estimate repair costs.
- Make Temporary Repairs: If it is safe to do so, take steps to mitigate further damage, such as boarding up windows, covering holes, or shutting off the electricity. Keep all receipts for any emergency repairs, as your insurance may reimburse you for these costs.
- Begin the Cleanup Process: Begin the cleanup process as soon as possible, focusing on removing standing water, drying out the property, and sanitizing areas that have been exposed to flood waters to prevent mold growth and other health issues.
- File Insurance and Government Claims: Submit your insurance claim promptly, keeping in mind that flood insurance claims may require documentation and specific steps to be followed. At the same time, contact your local authorities to inquire about available government assistance.
Property owners who adhere to these steps present strong, evidence-based claims which usually produce higher settlements.
Work With a Savvy New Orleans Attorney
Floods usually trigger several rights and responsibilities. For a confidential consultation with an experienced insurance lawyer in New Orleans, contact Insurance Claim HQ. We routinely handle matters throughout Louisiana.
