For homeowners without flood insurance, all that water is just the start of trouble
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Josh and Carla Mankey look at the pile of their ruinned belongings in front of their apartment on Main Street in Houston, Pa., where their basement completely filled with water and the first floor was flooded from the remnants of Hurricane Ivan in 2004.
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Recent flooding in the region and across the state has prompted more property owners to wonder if they either have, or need, flood insurance.
The truth is flash flooding can occur anytime and anywhere. Even homeowners who do not live in a high-risk area stand a chance of their home and household possessions being wiped out by rapidly rising flood waters.
A flash flood on Aug. 19 killed four people who had been in cars on Washington Boulevard in Highland Park, and recent historic flooding in the eastern half of the state caused extensive property damage and 12 deaths.
Many people believe they are covered against flood damage by their homeowners, condo or renters insurance policy, but that can be a costly misconception, according to industry experts.
Flood insurance is in a class of its own. It must be purchased separately through the National Flood Insurance Program, which is administered by the Federal Emergency Management Agency, or FEMA.
"Banks often require flood insurance," said Janet Scott-Buckley, manager of Harrington Insurance Agency in North Andover, Mass. "We are seeing it more now than before.
"Part of that is due to the National Flood Program doing a remapping of flood zones, and also because banks are a lot more careful and are looking deeper into what coverage a customer has.
"Flood insurance is one of those coverages they are starting to insist on," she said.
According to FloodSmart.gov, the official site of the National Flood Insurance Program, the average flood policy costs about $600 a year. From 2001 to 2010, flood insurance claims averaged just over $2.6 billion over the nine-year period, and the average flood insurance claim paid in the U.S. was $48,000.
Pennsylvania reported the 10th highest number of flood insurance claims in 2010 at 1,094 total claims.
For those property owners who plan on just letting the federal government bail them out in a national flood disaster, Ms. Scott-Buckley pointed out that most disaster assistance comes in the form of low-interest loans, not grants.
And when property owners do receive financial assistance from the federal government following a presidentially declared disaster, they may then be required to purchase flood insurance coverage.
Some homes, such as those that back up on a creek or sit in a low-lying area, seem logical candidates for flood insurances. But the homeowners uphill might want to consider it, as well.
First Published October 25, 2011 12:00 am
