Few Have Flood Insurance to Help Recover from Devastating Storms in the Midwest – Hartford Courant

By MICHAEL PHILLIS and MARGERY A. BECK

SOUTH SIOUX CITY, Neb. (AP) – Rick Satterwhite’s home borders the Missouri River, but flood insurance didn’t really seem necessary – until this week, when he had to pump water from his basement after a series of devastating storms.

It’s not the first time he’s had to dry out his basement from floodwaters, but severe storms are becoming more common, he said. Satterwhite watched with dread Monday as the river came within 2 feet (61 centimeters) of his back door in Dakota City, Nebraska, after torrential rains caused record-breaking flooding in the Midwest, destroying hundreds of properties.

“I talked to our officer today,” Satterwhite said. “We are going to get flood insurance now.”

Satterwhite is certainly not alone. As the Midwest begins to recover, many will no longer have flood insurance, which must be purchased separately from homeowners insurance. Federal data shows that the government has issued only about 26,500 flood insurance policies combined in the flooded states of Nebraska, South Dakota, Iowa and Minnesota.

A lack of insurance can saddle homeowners with out-of-pocket repair costs and place more burden on nonprofits and the government, said Emily Rogan, senior program officer at United Policyholders, an insurance consumer group.

In Iowa, for example, consulting firm Milliman estimates that in 22 of the counties under the governor’s disaster declarations, fewer than 1% of single-family homes have flood insurance from the government, which issues the vast majority of policies.

Many think flooding won’t happen to them and is hardly worth the cost of another bill, said Tom O’Meara, CEO of Independent Insurance Agents of Iowa. Property insurance rates in Iowa have skyrocketed in recent years after a series of expensive weather disasters, he said. Avoiding flood insurance comes as climate change increases flood risk, creating conditions that cause wetter rainstorms.

And last week’s storms also severely flooded smaller rivers that don’t often flood, catching people off guard.

“I don’t think people have personal experiences with flooding like this very often,” said Nathan Young, deputy director of the Iowa Flood Center.

In 2022, the average annual price of federal flood insurance was $935. Federally backed mortgages and many banks require flood insurance in high-risk zones identified by the Federal Emergency Management Agency, but those maps do not take flooding into account from all sources, such as rain. FEMA’s recently updated prices reflect more factors, and the agency says these prices — and not the flood maps — are the best indicator of risk.

In Iowa, hundreds of people are being helped at American Red Cross shelters. Workers ask people about their loved ones and basic needs. Then they help victims assess the damage and what can be done. That’s when some people first realize they should have bought separate flood insurance, said Charles Blake, senior executive of disaster services for the American Red Cross. People who do have policies are so grateful, he said.

“It gives you an edge,” Blake said.

Others, like Ben Thomas, consciously avoid flood insurance and take risks themselves. For nearly two days, Thomas pumped water from his basement on the north side of the Little Sioux River in Spencer, Iowa, moving between his house, the riverfront property across the street and other neighbors.

“I don’t believe insurance is the answer to life’s problems,” he said. “I would say we made a very considered decision, but in this case we’re burned.”

While he doesn’t regret his decision not to buy an expensive policy, he acknowledged that residents may feel differently on the south side of the river, where some homes are unlivable because there is water on the ground floor.

The National Flood Insurance Program covers up to $250,000 for a building and offers policies to protect contents worth as much as $100,000. That’s not always enough to replace a completely destroyed home, and while the residential market is small, it offers policies that can fill the gap.

Some help is available for the uninsured. The federal government’s disaster declaration for parts of the flooded area allows it to provide grants and low-interest loans to help with temporary housing, some home repairs and essentials such as cleaning supplies and baby formula.

“We can still help,” Mills said, but flood insurance is much more money-making.

FEMA’s new pricing method increased rates for about three-quarters of policyholders, but others saw a drop for the first time. Selling more policies is a struggle nationwide; slightly fewer people are buying them this year.

One problem is that FEMA is prohibited from discounting premiums for low-income residents, said Rob Moore, director of flood solutions at the Natural Resources Defense Council.

“Only Congress can solve this,” he said.

And when rebuilding begins, that’s the easiest time to reduce the risk of another flood, said Chad Berginnis, executive director of the Association of State Floodplain Managers.

“Instead of immediately rebuilding the same way, stop and think about what you can do to protect yourself,” Berginnis said. “No one wants to lift their house or do waterproofing projects on a sunny day.”

___

Associated Press reporter Hannah Fingerhut in Des Moines, Iowa, contributed to this report. Phillis reported from St. Louis.

___

The Associated Press receives support from the Walton Family Foundation for reporting on water and environmental policy. The AP is solely responsible for all content. For all of AP’s environmental coverage, visit https://apnews.com/hub/climate-and-environment