Siouxland homes without flood insurance face coverage limits and costly repairs after flooding

SIOUX CITY — As the cleanup begins after last week's devastating floods in Siouxland, homeowners with flood-damaged properties may have a rude awakening ahead.

Their homeowners insurance will not cover damage caused by the widespread flooding, according to Sioux City State Farm Insurance agent Angelo James.

He said it's been a difficult week for many of his clients who have suffered flood damage but are finding out that there homeowners policy won't cover their losses.

"That is one of the exclusions in all homeowners policies," James said.

Apartment woes

The same applies for apartment dwellers who have renters insurance which is designed to cover the loss of personal property.

"Most homeowners policies have exclusions for natural disasters because those are widespread losses that most insurance companies simply wouldn't be able to handle. The widespread catastrophe would put insurance companies in financial harm."

Flood insurance is designed to cover losses from such a natural disaster.

According to the Federal Emergency Management Agency flood map service center, "Whether you are in a high risk zone or not, you may need flood insurance because most homeowners insurance doesn't cover flood damage. If you live in an area with low or moderate flood risk, you are five times more likely to experience flood than a fire in your home over the next 30 years. For many, a National Flood Insurance Program's flood insurance policy could cost less than $400 per year."

Homeowners can purchase federal flood insurance no matter where they live, if their community participates in the National Flood Insurance Program. Banks normally require homeowners buying properties in a floodplain to purchase flood insurance.

"Most insurance companies don't write it, but we write it. it's a federal government FEMA program," James said.

Still a question

Riverside homeowner Jessica Frazee does not have flood insurance.

"Our insurance adjuster is not coming until Monday so we won't know how good or bad we sit until then," she said Friday.

"We're going with the sense that we have to do this work and get the stuff done. And we will either be made whole, or we won't. We have to do it whether we do it on our own or with the help of insurance. We are not waiting for the city."

The family has received "an overwhelming amount of messages and calls" from family and friends reaching out to offer assistance as they try to begin the cleanup process.

The Frazee family has not yet applied for FEMA benefits.

"We are waiting for more information. Our initial problem was not directly flood related," Frazee said. "Our problem was that we had water and sewer come up through our basement utilities. Our initial issue was not direct flood water.

"We are fortunate that our burden is not worse. Our house is still standing. We have family and friends that have overwhelmed us with support."

Even with flood insurance policies, there are limits to the coverage.

Among them: finished basements. "There is limited coverage in a flood policy for a finished basement," James said. "Even though you may have flood insurance you may have damage (that won't be covered). The damage to the basement as far as the carpeting, sheet rock and those types of things wouldn't be covered."

What's covered

According to FEMA, basement coverage under the Standard Flood Insurance Policy (SFIP) consists of specific building items in a basement and cleanup. Items must be connected to a power source, where appropriate, and/or installed in their functioning location. Cleanup expenses can include pumping out trapped floodwater, labor to remove or extract spent cleaning solutions, treatment for mold and mildew, and structural drying of salvageable interior foundation elements.

Flood insurance will cover household equipment such as a furnace, water heater, washer or dryer located in the basement.

Flood insurance policies are not cheap. They can cost as much and sometimes more than a normal homeowners policy.

"It's very specific as to what it will cover," James said.

According to FEMA, a maximum of $250,000 of building coverage is available for single-family homes, and the same limit per unit in a multi-family building. There is a $100,000 limit on contents coverage for residential buildings, which is also available to renters.

Teams helping now

Residents can apply for assistance with immediate needs such as housing through FEMA, according to Tiana Suber, FEMA external affairs media relations specialist.

To apply, you can call the hotline at 1-800-621-FEMA (3362) or apply online at DisasterAssistance.gov.

Disaster Survivor Assistance teams are in the area helping applicants, Suber said.

"When they apply with FEMA they can be eligible for temporary housing," she explained. "They can be eligible for rental assistance. They can be eligible for housing assistance."

Renters would also be eligible for coverage for property damage within the apartment. Additionally, there's assistance to replace lost medicine.

Suber said if the community is in the designated county with the disaster they are eligible.

If you have flood insurance, you need to file that insurance claim first and then apply for FEMA assistance.

"FEMA will have to wait for your insurance claim letter first before we can proceed with your application," Suber said.