Some Iowans Ineligible to Buy Flood Insurance 

Release Date: July 9, 2008
Release Number: 1763-075

» More Information on Iowa Severe Storms, Tornadoes, and Flooding

DES MOINES, Iowa -- As Iowa flood waters recede, thousands of Iowans face the burden of borrowing money to repair or replace their flood-damaged homes. Many of them could have bought flood insurance up to 30 days before the flood, filed claims, and avoided years of loan payments.

Many others, however, could not have bought flood insurance even if they wanted to. They live in the hundreds of Iowa communities that don't participate in the National Flood Insurance Program (NFIP), according to officials from the Federal Emergency Management Agency (FEMA) and Iowa Homeland Security and Emergency Management Division (HSEMD).

"The flood of 2008 has really brought to the forefront the critical difference having flood insurance makes to people's lives," said Iowa's State Coordinating Officer Pat Hall.

About 500 Iowa communities participate in the NFIP, while more than 450 do not.

To join the NFIP, a community must enact and enforce an ordinance governing building and development in special flood hazard zones. The purpose is to lower the risk of future flood damage and the overall flood hazard. These measures help to control the cost of flood insurance premiums.

As a result of the federal disaster declaration, FEMA has teams of flood specialists working now in Iowa. They are making surveys of properties in special flood hazard zones to identify those that were more than 50 percent destroyed and then presenting the lists to local officials. To comply with NFIP rules, these properties, when rebuilt, must conform to the community's current building code, so that they will be less vulnerable to damage from future floods.

"FEMA specialists are available to work with communities anywhere in Iowa to help them participate in the NFIP," said Bill Vogel, FEMA's federal coordinating officer for the Iowa disaster.

"I urge Iowans to buy flood insurance if they can," he said. "Over the life of a 30-year mortgage, a home in a special flood hazard zone has a 26 percent chance of being damaged by a flood, compared to a 9 percent chance of fire. In addition, 25 percent of all flood insurance claims are from outside special flood hazard zones."

The state's Hall said those who live in non-participating communities can petition their local officials to join the NFIP.

"The coverage may seem expensive or unnecessary," Hall said. "But floods will continue to occur. Insurance premiums will usually add up to a lot less than having to pay the full cost plus interest to repair or replace your flood-damaged home."

To find out if you are eligible to buy flood insurance, go to www.floodsmart.gov and type your address into the box. The Web site will tell you if your property is eligible, give an idea of the premiums you would pay, and provide a list of local insurance agents who sell flood insurance.

FEMA coordinates the federal government's role in preparing for, preventing, mitigating the effects of, responding to, and recovering from all domestic disasters, whether natural or man-made, including acts of terror.

Last Modified: Wednesday, 09-Jul-2008 15:40:16