Recent storms are wakeup call about flood insurance

HARTFORD -- If it rains on your home, it can become flooded.

That was the message from insurance as well as state and federal emergency officials on Jan. 30 as they briefed state lawmakers five months after the fatal flooding in the Naugatuck Valley and southwestern Connecticut that caused about $300 million in damage, much of which was not covered by flood insurance.

During a two-hour forum on the issue with members of the legislative Insurance and Real Estate Committee, the possibility -- if not the inevitability -- of flooding was hammered home to lawmakers who were later reassured that at a time when homeowners in places such as California are finding it hard to cover their homes, virtually everyone in Connecticut is eligible for the National Flood Insurance Program. It was created by Congress in 1968 and covers residential losses of $250,000 for buildings and $100,000 for contents. Non-residential buildings can get $500,000 for coverage for the structures, plus $500,000 for inventory.

"The existing marketplace is handling the needs and the risks of Connecticut residents," said Eric George, president of the Insurance Association of Connecticut. "It's not like that in every state. It's important to recognize and I think there has been as lot of misinformation out there, about concerns that events that have occurred in California and Florida may somehow impact premiums here in Connecticut. I need to tell you that that is not happening."

He stressed that whether or not a home is in a designated flood zone, it may still sustain water damage. "If you're in a flood zone you have to have flood insurance for your mortgage, but even if you're not, no one is free from the risk of flood in this entire state," George said. "It is paramount that people consider purchasing flood insurance either through the National Flood Insurance Program or through a private carrier regardless if you're in a flood plain. And it's much more affordable if you're not in a flood zone."

The Aug. 18 storm caused an estimated $300 million in flood damage as well as the deaths of two women in Oxford and a Weston man whose body was found downstream in Westport.

Butch Kinerney, chief of partnerships and outreach at the Federal Emergency Management Agency, testifying via video, told the committee that flooding in America is the most common and costly natural disaster, affecting 99 percent of U.S. counties between 1996 and 2022. "Just one inch of water can cause $25,000 of damage in a home," he said, including floors, dry wall, carpeting and equipment. "It's not just hurricane. Despite devastating floods, people continue to build in risky areas."

He said since its creation the National Flood Insurance Program, a public-private partnership with governments agencies, homeowners and insurers, said that currently there is about $1.3 trillion in assets nationally. In 2024 there were 86,000 claims, with pay outs totaling $5.4 billion. Connecticut has about 32,000 active policies worth about $8 billion in assets. Since 1978, the state has had 30,000 claims totaling $552 million.

Most homeowners' policies do not cover flood damage, Kinerney said.

Diane Ifkovic, NFIP coordinator for the state Department of Energy and Environmental Protection, said that while the insurance program is voluntary, virtually every town and city in Connecticut has participated since the early 1980s. "It is important to know that every property owner in Connecticut is able to purchase a federal National Flood Insurance program policy," she said. "If you live high on a hill or down along the shoreline you can buy a policy."