Date: March 17, 2009
For more information contact: Jim Guidry, (608) 264-6239 or jim.guidry@wisconsin.gov

Now is the Time to Consider Flood Insurance

Madison, WI—With the spring thaw on its way, the time to consider purchasing flood insurance is now according to Wisconsin's State Insurance Commissioner Sean Dilweg.

March 16 to 20, 2009, has been proclaimed to be Flood Safety Awareness Week in Wisconsin by Governor Jim Doyle. With the flooding that has occurred in Wisconsin over the past two years, the Governor's proclamation serves as a timely reminder to Wisconsin residents of the growing importance of flood insurance.

"In each of the past two years Wisconsin has been hit with some of the worst flooding in recent memory," said Dilweg. "The storms that swept across southern Wisconsin in June of 2008 caused nearly $120 million in insured losses, but those losses pale in comparison to the amount of damage sustained by flooding which is estimated to be in excess of $765 million."

Thirty-one southern Wisconsin counties received federal disaster declarations in 2008, in addition to the 14 Wisconsin counties that were declared disaster areas in 2007. According to the National Weather Service and the Wisconsin Department of Natural Resources, more flooding in 2009 could likely occur due to high water tables, heavy snowfall and rain.

Many people are unaware that their homeowner's policy does not cover their property and possessions in the event of a flood. Flood insurance covers the direct physical losses caused by floods, flood-related erosion, severe rainstorms, flash floods and mudslides. There is, however, a 30-day waiting period before the policy takes effect, which is why Commissioner Dilweg believes that consumers need to think about flood insurance now.

"As 2007 and 2008 have shown us, flooding can happen anytime and almost anywhere," said Dilweg. "A few spring rains could easily recreate what has occurred over the past two years. If consumers don't consider purchasing flood insurance now, they could be faced with no coverage later this spring."

This year, the Office of the Commissioner of Insurance is teaming with the Division of Emergency Management, the Department of Natural Resources, and the Federal Emergency Management Agency to help spread the word about purchasing flood insurance and what it could mean for Wisconsin residents who become victims of severe flooding.

"This cooperative effort shows how important flood damage mitigation is to the State of Wisconsin," said Dilweg. "Flood insurance is the best first step to help consumers avoid financial hardship."

Flood insurance is relatively inexpensive and is available under the National Flood Insurance Program (NFIP), a federally backed program managed by the Federal Emergency Management Agency (FEMA). According to the FEMA Web site, the average cost of the policy is slightly more than $300 a year for approximately $100,000 of coverage.

Under the flood insurance program, coverage may be purchased as long as the property is located in a community that participates in the NFIP. To verify if a community participates, check with a property insurance agent or visit the FEMA Web site at www.fema.gov/business/nfip/. Information on the program can be obtained by calling 800-427-2419 or visiting http://www.floodsmart.gov/floodsmart/.

More information about homeowner's insurance and flood insurance is also available from OCI. The OCI publications, "Consumer's Guide to Homeowner's Insurance" and "Settling Property Insurance Claims," can be viewed on the OCI Web site at oci.wi.gov. Single copies can also be ordered free from the agency by writing to OCI Publications, P.O. Box 7873, Madison, WI 53707-7873, or calling 800-236-8517.

Created by the Legislature in 1871, Wisconsin's Office of the Commissioner of Insurance (OCI) was vested with broad powers to ensure that the insurance industry responsibly and adequately met the insurance needs of Wisconsin citizens. Today, OCI's mission is to lead the way in informing and protecting the public and responding to its insurance needs.