Buy Flood Cover Before Storms Hit Regulators Warn

Regulators in several states took note today of the approaching hurricane season by issuing announcements urging residents to buy flood insurance.

In Louisiana, Insurance Commissioner Jim Donelon noted that floods are the state's most frequent natural disaster and mentioned that the National Oceanic and Atmospheric Administration is predicting between 13 and 16 Atlantic Basin named storms, with four to six of them being major hurricanes. Hurricane season begins June 1.

“Residents should learn their flood risk and take steps before the next storm to protect their home or business from potential flood damage. Remember, standard homeowners insurance does not typically cover flood damage,” he cautioned.

Maine's Acting Insurance Superintendent Eric A. Cioppa took note of the flooding caused by the April 16 Nor'easter that hit Maine stating that, “Since many in the State are still struggling to recover from this recent storm, residents should take time to learn their flood risk and take steps to protect their home or business from potential flood damage before the next storm hits. Remember, homeowners insurance does not typically cover flood damage.”

He also took note of predictions of an above-average hurricane season and mentioned that floods are the most frequent natural disaster in America.

“Flood insurance backed by FEMA's [Federal Emergency Management Agency's] National Flood Insurance Program provides homeowners, business owners, and renters with the best protection available against flooding. The National Flood Insurance Program estimates that 7,900 policies issued in Maine have flood insurance coverage for losses that property owners would otherwise have to pay themselves,” Mr. Cioppa's statement said.

Flood insurance is available through abut 25 insurance companies in more than 964 NFIP participating communities in Maine, according to Mr. Cioppa.

In Louisiana, more than 31 percent of households statewide currently have NFIP coverage yet many properties located in high-risk flood areas remain uninsured or underinsured against floods, Mr. Donelon reported.

Although storm surge caused by hurricanes and tropical storms can wreak havoc on coastal areas, some of the most damaging floods occur hundreds of miles from the shoreline, days after the storm's initial landfall. As hurricanes and tropical storms move inland, torrential rains and high winds intensify the risks of flooding by rivers and streams.

The average flood insurance policy premium is around $500 a year in Louisiana, according to Mr. Donelon. In Maine, Mr. Cioppa said the average is $688.

Mr. Donelon also released a list of “Floodsmart” tips for homeowners to reduce flood risk.