Flooding hazard alert: Melting ice and snow increases risk

We all know that catastrophes come in all forms and shapes, not just as hurricanes, earthquakes, fires and mudslides. In light of the recent devastating winter ice and snow storms that crossed the Midwest and then moved to the eastern part of the country in February, I wanted to remind you about another kind of catastrophe — flooding.

Melting snow hazards
David I. Maurstad, FEMA’s Mitigation Division and Federal Insurance administrator, recently wrote an article for Insurance Journal (Feb. 12, Midwest, page 42) that warns about the real threat of flooding during the winter and early spring seasons. He says that already this season, Midwestern snowfall has set the stage for potential flooding in 2007. Several severe winter storms and blizzards have impacted Illinois, Indiana, Iowa, Kansas and Nebraska, leaving thousands of homeowners under more than a foot of snow. For these states and others, especially those adjoining the Mississippi River, the risk of flooding increases as snows melts and spring rains move in over the next several months.

Maurstad makes a special point regarding a recent RAND study that revealed that only 0.4 percent of single-family Midwestern homes outside of designated flood areas are covered by flood insurance. The figures are staggering — especially when one considers the risks involved.

“Too often, residents underestimate the likelihood of being affected by the number one natural hazard (flooding) in the U.S. and statistics further illustrate the danger. A home in a flood zone has a 26 percent chance of being damaged by a flood during the course of a 30 year mortgage compared to a 9 percent chance of fire,” Maurstad said.

Agent education
Maurstad said agent education is a key factor in helping to mitigate risk for homeowners. He advised agents to register online at a Web site specifically designed to further their education, Agents.FloodSmart.gov. He said that this Web site will give an agents direct access to easy-to-use tools and resources to maximize flood insurance policy sales. Maurstad also said that another program to check out is the Agent Co-Op and Referral program which helps agents plan and execute their own local advertising campaign to make your advertising dollars go further.

The need to help Midwesterners protect their financial assets with flood insurance is something that agents can be the leaders on in bringing that information to policyholders, friends and neighbors. Maurstad advises agents that the National Insurance Flood Insurance Program has created a wide range of resources to help make selling flood insurance easier. For specific questions call 800-427-4661.

Topics Trends Agencies Flood Training Development