Buying Flood Insurance is Easy
But the program is seriously underutilized
Release Date: July 17, 2007
Release Number: 1700-035
» More Information on Connecticut Severe Storms and Flooding
Windsor, Conn. -- Hurricane season is here -- and Connecticut is vulnerable. For the many residents who have never been through one, it is hard to imagine what hurricanes do. Historically, hurricanes have caused billions of dollars in property damage in Connecticut, much of it from flooding.
"Whether you live along the coast, by a river or stream, or far inland, a tropical storm or hurricane can lead to serious flooding," said Governor M. Jodi Rell. "Many smaller storms also cause floods. I urge everyone to evaluate their flood risk and, if needed, purchase flood insurance to protect their investment -- and to do it now, because coverage does not begin until 30 days after you buy your policy."
While flooding itself is usually not preventable, the financial and emotional toll can be greatly lessened when there is insurance to cover the damage. Between 1996 and 2005, the average flood insurance claim paid in the U.S. was more than $42,000. For those who don't have insurance, the price of flooding can be a severe financial strain that, for most households, requires taking on debt.
Only flood insurance provides coverage for water damage due to flooding. Standard homeowners insurance policies exclude coverage for flood damage.
The average annual flood insurance premium in Connecticut is $477, according to Ron Lansverk, a Certified Floodplain Manager with the National Flood Insurance Program (NFIP). Private insurance companies and agents sell and service the policies which are backed by the federal government under the Federal Emergency Management Agency's NFIP.
As with other types of insurance, the policy premium is based on the degree of risk and the amount of coverage. A coastal property or one on the bank of a river has a higher risk of flooding and, therefore, a higher insurance premium than one that is further inland and on higher ground. To find out what your premium would be for various amounts of coverage, go to the www.FloodSmart.gov Web site, a one-stop resource created by the NFIP to help people buy flood insurance.
Property owners should not be lulled into a false sense of security because they do not live next to a body of water. Some 40 percent of flooding insurance claims occur in areas not readily recognized as being vulnerable to flooding. They are generally not located near a river or other body of water, according to the Floodplain Management Association, a non-profit organization with government and industry members.
Homeowners may buy insurance for their houses and personal property and renters may buy personal property coverage. Businesses may buy coverage for their buildings and contents.
Some Connecticut insurance agents sell flood insurance, but others do not. Consumers and businesses can find a list of agents in their area who sell the coverage on the FloodSmart.gov Web site or by calling 1-800-427-4661. As of this year, every insurance agent in Connecticut will take continuing education courses on flood insurance, but the Department of Insurance does not requires agents to sell it.
Insurance agents typically note an increase in calls about flood insurance right before a storm. But that is too late - at least for immediate protection.
"Floods are the number one natural disaster in the United States," said Mike Parker, federal coordinating officer with the U.S. Department of Homeland Security's Federal Emergency Management Agency, which administers the NFIP. "Over the course of a 30-year mortgage, a property owner in a floodplain is four times more likely to have flood losses as a fire loss. Flood insurance provides financial protection at a reasonable cost."
In late June on Greenlawn Drive in Danbury, Joan Murtha explained that her next door neighbors haven't been home since the nearby Still River flooded their property during the April Nor'easter. The repairs to their house were incomplete.
Murtha, who was fortunate enough to avoid damage to her own property, said of the flood, "That was scary."
She has lived in her home only a few years and this was her first flood. She hasn't yet purchased flood insurance. "I've been hesitating, going back and forth. I'm going to call today," she said. "I'd like the peace of mind."
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. FEMA administers the National Flood Insurance Program through its Federal Insurance Administration.
Last Modified: Wednesday, 18-Jul-2007 07:38:15