Homeowners face named-storm deductibles even though Arthur had weakened before hitting southeast Louisiana

NEW ORLEANS (WVUE) - Renters and homeowners across southeast Louisiana are filing insurance claims to cover damage from Thursday’s storms, and some are learning they may face higher deductibles because the National Hurricane Center gave the storm a name.

Dwayne White’s home in Avondale and two cars were severely damaged by an EF-1 tornado Thursday. White said his auto insurance is covering everything except his $100 deductible. But he said his property claim will be different because he must pay a named-storm deductible — typically calculated as a percentage of the damage estimate.

“Paying the other one is totally different. It’s a disaster,” White said.

Even though Arthur was no longer a tropical storm when it damaged homes, businesses and cars in southeast Louisiana Thursday, insurance experts say a named-storm deductible still applies.

“Once it is named, all damage that occurred thereafter with that system (is connected),” said Dean Basse, who has been in the insurance industry for 43 years. “The named-storm deductible applies, which can be anywhere from 24 to 36 hours after the event is over.”

Basse said that means homeowners would not pay their flat deductible. Instead, they could owe a percentage of the loss. He said those percentages are typically between 2% and 5% but can go up to 10% for high-priced homes.

The named-storm deductible was implemented after Hurricane Katrina to keep insurance companies from fleeing the state, Basse said. He added that finding an insurer that offers coverage without separate wind, named-storm and hurricane deductibles would be “very rare.”

“It’s very much stressful. I tried to call my own insurance company. I couldn’t get through. When I did get through it was a lot of chaos, so yes. It’s very stressful,” White said.

Basse said homeowners with both wind and flood losses will have to pay two deductibles because they are covered under separate property and flood insurance policies.

The named-storm deductible is annual, Basse said, meaning what a homeowner pays now counts toward the next named storm if another one hits this year.

Damage to vehicles is handled under a separate auto policy, and that deductible is not tied to whether a storm is named.

In Kenner, police are also asking for help from residents with flood damage that may have been worsened by drivers pushing water into homes. Police want security video, photos or other evidence that could help identify those drivers.

The sticker shock for homeowners affected by the remnants of Arthur comes as Louisiana’s governor is also expressing frustration over the cost of flood insurance following an aerial tour of Avoyelles Parish, where hundreds of homes flooded.

“The unfortunate position we find ourselves in is many of the homes that are out there don’t have flood insurance,” Gov. Jeff Landry said. “They don’t have flood insurance because Congress, quite frankly, just refuses to fix it.”

Landry is asking Louisiana homeowners with flood damage to upload photos online to damage.la.gov. He said the images and information go straight to Louisiana’s Department of Homeland Security and Emergency Preparation and will help the state apply for aid from FEMA and petition Congress for the need to lower insurance rates.

As of Saturday, no federal funding had been approved and those with storm damage are asked to report any damage to their insurance company.

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