Flood victims likely did not have proper insurance: say local agents

By Wendy Pitlick

Black Hills Pioneer

SPEARFISH — The National Flood Insurance Program (NFIP) will cover flood losses that occur when two or more acres, or at least two or more properties are flooded, but the coverage is very limited, local agents say.

According to the website for the NFIP, the two types of flood insurance include building and personal property, with most infrastructure and property items covered with both. Items that are not covered include temporary housing, property outside of an insured building, financial losses caused by business interruption, losses of currency, precious metals or stock certificates or other papers, cars and other self-propelled vehicles, and any personal property that was kept in a basement or crawl space.

That last exclusion is key, since much of the flooding that occurred after the June 23 storm was in basements, said local insurance agents and Lawrence County Emergency Manager Paul Thomsen.

"People are calling us up, and it's tough as an agent because I'm here to help people," said Robert Barnett, who has served as an insurance agent for 35 years and is with his American Family Insurance. "A lot of people are getting water entering their home at ground level or below, and that's not covered. You can't just buy a flood policy to cover all water entering the home."

Thomsen said many of the people affected by the June 23 flooding were not in a 100-year flood plain. That means they would not have been required to purchase flood insurance as part of their mortgage. Since flood insurance is expensive, Barnett said it's unlikely that many of them had a flood policy. The problem with that, local agents say, is that most homeowner policies do not include ground water, or flooding events.

"Typically the only people who buy flood insurance are those who are forced to by their mortgage company," said Denise Gienger, of American Family Insurance Frank Pavich agency. "If it is surface water, which is defined as the minute water hits the natural ground it becomes surface water, that is what is not covered from a renters and homeowners insurance policy. Unfortunately, that is why there has not been coverage under homeowners insurance for anyone."

"Most of the surface water or flooding is not covered under any homeowner's policy," said Tammy Follette, of Farmers Insurance Kirk Bertsch agency. "Some people will have some coverage, it depends on what they have for endorsements. Some might have had a sewer backup endorsement, which might have helped them if the water came in through their drains."

Renters insurance that covers personal property damage in the event of a perilous event such as a fire or theft, typically does not include flooding either, Follette said.

"If they're in their apartment and the pipe broke and flooded their apartment, no problem. We've got coverage," Follette said. "What we went through — nope."

While many property owners may be frustrated with their insurance policies, Thomsen said it is not likely there will be any federal emergency assistance coming from FEMA, either. Most of the damage from the June 23 storm was to private property in a small locality, he said, so it is unlikely the Federal Emergency Management Association will help. Thomsen said an emergency disaster declaration requires $1.6 million in public infrastructure damage in the state, and about $144,000 in public infrastructure damage in the county. Additionally, he said for homeowners to receive public assistance, there would have to be at least 100 single family homes, not apartment buildings, that were uninhabitable.

"We didn't meet the first one and we haven't even met the second one," Thomsen said. "I haven't had a report of anything other than a road that was eroded on the north end of Woodlands. We did have water going over the roads. We had some mud. But as far as taking out the roads and damage, this storm was very localized in a very small area, and it didn't cover the state. It didn't cover all the county. The damages we had were pretty severe in this very small locality. Therefore, the costs of the damages were too small comparatively to the whole state."

In the case of the U.S. Department of Agriculture's Rural Development apartments on 10th Street, Thomsen said FEMA will likely defer to USDA to handle those cases and provide assistance. Representatives from USDA did not respond before press time to requests for comment about how they are responding to the disaster, or any available assistance that residents may be able to utilize.

But right now there are some things homeowners can do to mitigate damage to their homes, and prevent future ground water flooding, Barnett said. Utilizing a professional cleaning service is key at times like this, he said, in order to prevent mold growth. Additionally, with rain continuing in the forecast, Barnett said it is very important for homeowners to use sandbags, to prevent even more water flow into the homes. Assessing landscaping, Barnett said, is also key to ensuring water flows away from the home.

"The best thing with water is prevention," he said. "A lot of this flooding that is happening is preventable. I can tell you stories you wouldn't believe on brand new homes. It's all the same thing. In June when they get a lot of rain it comes down the hill and the way they've landscaped, all the water flows into the window well. (June 23) was pretty bad. It's more than we've had the in the last few years. But it could happen again tonight, so where's the sandbagging?"

To read all of today's stories,

Click here

or call 642-2761 to subscribe to our e-edition or home delivery.