Insurance Discussion

By MARK NEWMAN

OTTUMWA — While everyone should consider flood insurance, it’s especially important for elected officials.

Representatives from FEMA and the Iowa Department of Natural Resources told officials from Ottumwa, Eldon, Wapello County and other municipalities on Tuesday that in order for any property owner to purchase National Flood Insurance Program coverage, local governments must join the program.

“Nobody is forced to buy flood insurance,” said Roger Benson, a FEMA mitigation specialist, “but you can’t buy it at all if the community does not participate.”

He said most larger communities, like Ottumwa and Des Moines, already participate. Typical homeowners insurance does not cover flood damage.

He said part of the reason is to keep the community vibrant. Lenders may not agree to mortgage on homes in a flood plain without flood insurance.

“It’s harder to buy or sell property,” said DNR engineer Bill Cappuccio. “They may have to go purchase private flood insurance at three times the price.”

Benson said banks are interested in protecting the structure, because it is collateral. For example, while flood insurance may be a requirement, protecting the contents of the home is not mandatory. That is something to consider, though, he said.

Another tip: It takes 30 days for NFIP flood insurance coverage to begin, said Cappuccio, so don’t wait until the snow melt of spring to sign up.

Cappuccio said state and federal government have certain prerequisites on what they will insure. If the home is mapped in a known flood area, the cost would be higher than in a place where it never floods. But there still must be a level of protection in place.

“The three things we’re talking about are insurance, flood plain mapping and flood plain hazard management,” said Benson.

But it all hinges on the map. The new map being developed this year will show communities where the biggest dangers are, allowing local zoning regulators to take precautions, and property owners to make informed decisions on buying insurance.

While anyone can buy flood insurance, how much you spend — and how high you must place your building — will depend largely on the flood map being reviewed now by area officials.

The proposed map should soon be available at local courthouses and city halls. Citizens who have objections based on good scientific data should communicate their concerns to local officials, Benson said.

Benson said it’s not just engineer-built levees that protect structures; the law requires NFIP participants to find “100 year flood level” and build all new structures one-foot above that.

“Larger floods do occur,” he said. “A great levee will protect you — to a point.”

Cappuccio said it’s time to inspect Iowa’s levees, to make sure they are certified strong enough.

Ottumwa Mayor Dale Uehling said the town’s levees have had the most stringent tests of all — floods in 1993 and 2008.

That’s true enough, said Benson, but he compares the idea to the middle-aged man whose employer wants him to go to the doctor for a physical. It’s not like the man can bring the paperwork from when he was 25 and say, “Here’s my physical.”

They want to know what the current state of the levee is, Cappuccio said. Communities need to certify the levees within two years in order to be in NFIP.

Still, no matter how strong a levee is, it can be “overtopped,” so that even those in a lower risk area guarded by a “flood protection structure” should consider flood insurance, Benson said.

Though the federal government has a long, in-depth definition of a flood, Benson said he can describe the basic idea. It’s an overland flow over normally dry ground that crosses a legal boundary.

His favorite analogy: If your leaking pool floods your living room, it’s not a flood, because while water did flow over normally dry ground, it didn’t cross a legal boundary. If your leaking pool floods your neighbor’s living room, it is a flood.

Mark Newman can be reached at 683-5358 or by e-mail at mnewman@ottumwacourier.com.

This entry was posted on Wednesday, February 3rd, 2010 at 3:55 am and is filed under Home Insurance, News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.