Flooding Hits Midwest
By: The Editors
The severe flooding that ravaged the Midwest this summer is more proof that natural disasters can strike any time and anywhere. Big “I” Chairman Bob Fulwider was in the middle of the flooding in Iowa and at press time was busy helping his customers with claims.
Less than 9% of residents in the high-risk areas of Iowa, Illinois, Indiana, Missouri and Wisconsin have flood coverage and less than1% of residents in these states’ low to moderate-risk areas have flood protection, according to FEMA. Properties in high-risk areas that have a mortgage from a federally regulated or insured lender are required to carry flood insurance. However, FEMA estimates that approximately a quarter of all flood claims come from areas where flood insurance is optional. Property owners in low to moderate-risk areas often don’t consider flood protection unless it’s offered to them by their agent.
“Everyone is at risk for flooding. Everyone lives in a flood zone—it’s just a question of whether the property is in a low to moderate or high risk area,” says Linda Mackey, Big “I” Flood Program manager. “Agents should be offering flood coverage to all their clients allowing the client to make the decision as to whether the coverage is needed and then if rejected, asking for the client’s signature on the flood rejection form for their permanent client records. Agents must be very careful when stating ‘needed’ or ‘required’ when talking about flood insurance. It is always needed.”
The Agents Council for Technology (ACT) received a first-hand account of the devastation from one of its own committee members. Eldon Hunsicker of NOEL Insurance in Ottumwa, Iowa provided this description from the ground:
“Thanks for your thoughts about our welfare. Iowa appears to be an entire state under siege. In the past two and a half weeks we have had12 killed in tornados, tornados and flooding in every corner of the state, and our two largest cities crippled by major flooding. Downtown Des Moines was evacuated yesterday. All of our insurance companies in downtown sent e-mails early afternoon that they were evacuating by order of the civil authority. Our claims calls for Allied are now being answered and handled by a claims service center in Florida. Thank goodness for automation.
Cedar Rapids is now a city where there is no highway open that one can travel across the city. 25,000 have been evacuated from homes and the downtown is completely inundated. In Iowa City, the University of Iowa continues to sandbag in an attempt to keep more residence halls from being closed. DOT closed Interstate 80 from the Quad Cities to Des Moines. That is a stretch of about 167 miles across the center of Iowa. The detour takes traffic through Dubuque which is an additional 250 miles, not what most travelers want with the current price of gas. Amtrak has discontinued the California Zepher from Chicago to California. That train will originate in Omaha for California until the floods subside. Our river crest here is not expected until Monday. I only have one employee who has been evacuated so far. The National Guard has just about taken over downtown here. They are building new temporary levees in an attempt to save our water supply. It all is amazing. It is the anticipation that is difficult to handle.
However, you hear very little complaining. There is a lot of neighbor helping neighbor. It is very reassuring to see things in action that represent the best of what we as Americans are all about. Hopefully, mid week finds that our levies weather the crest. Thanks for your thoughts!”
As the clean up from what some are calling a 500-year flood event begins, some communities affected by this month’s floods are suffering more than others because they didn’t take advantage of the National Flood Insurance Program (NFIP).The NFIP, part of the Department of Homeland Security/Federal Emergency Management Agency (FEMA), was established in 1968 to enable property owners and renters in participating communities to purchase flood insurance as protection against flood losses. Since its inception, more than 20,400 communities nationwide have joined the federal program; however not all communities, including several in the flooded region of the Midwest, have taken the necessary steps to gain eligibility.
FEMA has set up a Midwest flood response page on its Web site where agents can visit or direct insureds for more information on recovery and rebuilding efforts. Agents can also find a breakdown by state/province of the communities included in the NFIP and their status at www.fema.gov/fema/csb.shtm.
-The Editors
Less than 9% of residents in the high-risk areas of Iowa, Illinois, Indiana, Missouri and Wisconsin have flood coverage and less than1% of residents in these states’ low to moderate-risk areas have flood protection, according to FEMA. Properties in high-risk areas that have a mortgage from a federally regulated or insured lender are required to carry flood insurance. However, FEMA estimates that approximately a quarter of all flood claims come from areas where flood insurance is optional. Property owners in low to moderate-risk areas often don’t consider flood protection unless it’s offered to them by their agent.
“Everyone is at risk for flooding. Everyone lives in a flood zone—it’s just a question of whether the property is in a low to moderate or high risk area,” says Linda Mackey, Big “I” Flood Program manager. “Agents should be offering flood coverage to all their clients allowing the client to make the decision as to whether the coverage is needed and then if rejected, asking for the client’s signature on the flood rejection form for their permanent client records. Agents must be very careful when stating ‘needed’ or ‘required’ when talking about flood insurance. It is always needed.”
The Agents Council for Technology (ACT) received a first-hand account of the devastation from one of its own committee members. Eldon Hunsicker of NOEL Insurance in Ottumwa, Iowa provided this description from the ground:
“Thanks for your thoughts about our welfare. Iowa appears to be an entire state under siege. In the past two and a half weeks we have had12 killed in tornados, tornados and flooding in every corner of the state, and our two largest cities crippled by major flooding. Downtown Des Moines was evacuated yesterday. All of our insurance companies in downtown sent e-mails early afternoon that they were evacuating by order of the civil authority. Our claims calls for Allied are now being answered and handled by a claims service center in Florida. Thank goodness for automation.
Cedar Rapids is now a city where there is no highway open that one can travel across the city. 25,000 have been evacuated from homes and the downtown is completely inundated. In Iowa City, the University of Iowa continues to sandbag in an attempt to keep more residence halls from being closed. DOT closed Interstate 80 from the Quad Cities to Des Moines. That is a stretch of about 167 miles across the center of Iowa. The detour takes traffic through Dubuque which is an additional 250 miles, not what most travelers want with the current price of gas. Amtrak has discontinued the California Zepher from Chicago to California. That train will originate in Omaha for California until the floods subside. Our river crest here is not expected until Monday. I only have one employee who has been evacuated so far. The National Guard has just about taken over downtown here. They are building new temporary levees in an attempt to save our water supply. It all is amazing. It is the anticipation that is difficult to handle.
However, you hear very little complaining. There is a lot of neighbor helping neighbor. It is very reassuring to see things in action that represent the best of what we as Americans are all about. Hopefully, mid week finds that our levies weather the crest. Thanks for your thoughts!”
As the clean up from what some are calling a 500-year flood event begins, some communities affected by this month’s floods are suffering more than others because they didn’t take advantage of the National Flood Insurance Program (NFIP).The NFIP, part of the Department of Homeland Security/Federal Emergency Management Agency (FEMA), was established in 1968 to enable property owners and renters in participating communities to purchase flood insurance as protection against flood losses. Since its inception, more than 20,400 communities nationwide have joined the federal program; however not all communities, including several in the flooded region of the Midwest, have taken the necessary steps to gain eligibility.
FEMA has set up a Midwest flood response page on its Web site where agents can visit or direct insureds for more information on recovery and rebuilding efforts. Agents can also find a breakdown by state/province of the communities included in the NFIP and their status at www.fema.gov/fema/csb.shtm.
-The Editors
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