#United States #New Orleans #Floodbase #Yokahu

New Flood Insurance Solutions for New Orleans

In a groundbreaking development for New Orleans businesses, Floodbase, a leading platform for overcoming uncovered flood risks, has partnered with insurance intermediary Yokahu. This collaboration aims to offer immediate and automated flood insurance policies, specifically designed to cater to the needs of local enterprises.

Expanding Coverage Options

The newly introduced flood insurance options come as a significant leap forward, particularly for the many businesses in New Orleans that struggle to secure sufficient coverage. Traditionally, businesses have relied heavily on the federal National Flood Insurance Program (NFIP), which can cap commercial payouts at $500,000. Unfortunately, this limit is often inadequate when accounting for the potential scale of business interruption and other associated economic losses resulting from severe flood events, as seen during Hurricane Ida in 2021, which caused over $3 billion in damages.

With these newly offered parametric policies, backed by an “A+” AM Best rated carrier, the coverage expands far beyond the terms of the NFIP. It can encompass a wide array of economic losses such as:

• - Business interruption
• - Revenue loss
• - Cleanup and repair costs
• - Temporary facility arrangements

Yokahu’s innovative platform enables brokers to receive automatic quotes, streamlining the process for businesses looking to enhance their insurance coverage efficiently. This endeavor is particularly crucial since the hospitality sector, a cornerstone of the local economy, often finds itself inadequately protected during periods of flooding.

Parametric Innovations

What's exciting about these new options is the utilization of parametric insurance—a model that pays claims automatically once a predefined threshold is met. For example, in New Orleans, payouts are triggered once a certain percentage of the city's area becomes inundated with floodwater. This contrasts sharply with traditional insurance, which frequently requires on-site verification of damage before claims are honored, often leaving businesses located on upper floors or elevated areas without support.

Moreover, with a continuous monitoring system provided by Floodbase, businesses can expect timely payouts that align more closely with the actual damages incurred rather than merely the physical destruction observed. This system promises a safety net for businesses exposed to unpredictable weather events.

A Transformational Partnership

Both Bessie Schwarz, CEO of Floodbase, and Tim McCosh, CEO of Yokahu, have expressed enthusiasm regarding this partnership. Schwarz states, "New Orleans businesses have waited too long without appropriate flood insurance options, exposing them to significant financial risk." This innovative coverage is particularly vital as the city remains a global tourist destination where foot traffic and hospitality revenue can plummet amidst regional flooding.

McCosh emphasized that this collaboration marks merely the beginning of their commitment to enhancing insurance solutions across the U.S., indicating the potential for an expanded reach and service areas in the near future.

For business owners in New Orleans looking to equip themselves with more robust insurance strategies against the cost of flooding, investigating these offerings by Floodbase and Yokahu could provide a much-needed layer of financial security. This initiative is more than just an insurance product; it’s a commitment to stabilizing and supporting local economies during adverse weather conditions.

How Businesses Can Get Started

To explore these new flood insurance options, local business owners can connect with Floodbase or Yokahu directly. It’s an opportunity to investigate their tailored solutions designed to fit within individual coverage needs and budget constraints, ensuring that their enterprises are not only protected but positioned for recovery in the face of future challenges.