Nearly 60K New Orleans Homes Moving Out of High-Risk Flood Zone: CoreLogic

New data analysis released by CoreLogic indicates that in Louisiana’s Orleans Parish, which encompasses the city of New Orleans, nearly 60,000 homes with a reconstruction cost value of more than $12 billion will no longer be located in a designated high-risk flood zone.

The designated flood zones are considered high risk and flood insurance is mandatory for properties with a mortgage. Revised Federal Emergency Management Agency (FEMA) Flood Insurance Rate Maps (FIRMs) that become effective Sept. 30 show nearly 60,000 single-family homes in New Orleans moving from within a Special Flood Hazard Area (SFHA) to outside of a SFHA.

Also for the Orleans Parish, CoreLogic estimates the reconstruction cost value of 762 single-family homes that were not previously located in a SFHA, but are now, to be almost $89 million. The revised maps now show 63 percent of the Orleans Parish to be in a designated SFHA compared with the previously designated 85 percent.

FEMA flood designations are important and provide an indication of flood risk, but experts agree that every homeowner should consider flood insurance regardless of whether or not their home is located in an officially designated high-risk flood zone. In fact, properties outside of mapped high-risk flood areas generally account for more than 20 percent of all National Flood Insurance Program flood insurance claims and receive one-third of federal disaster assistance for flooding.

Although not required by federal law, some mortgage lenders may also require flood insurance for homes located outside a SFHA.

The new maps — published by FEMA and developed through a partnership with the U.S. Army Corps of Engineers and community officials — are intended to reflect current flood risk based primarily on the Hurricane and Storm Damage Risk Reduction System improvements implemented since Hurricane Katrina.

Source: CoreLogic

Topics Flood Homeowners