With spring thaw beginning, now is a good time to consider flood insurance

With recent snow and rain increasing the risk of spring flooding in much of state, the Minnesota Department of Commerce encourages Minnesotans to learn how their homeowners' or renters' insurance covers water damage. It generally takes 30 days for a flood insurance policy to go into effect so the best time to sign up is well before flooding or heavy rains occur.

Research shows more than half of all homeowners do not realize most homeowners' policies do not cover damage caused by floods. More than 95 percent of flood insurance policies are instead purchased through the National Flood Insurance Program (NFIP).

Minnesota ranks last in the country in flood insurance adoption, with just 0.33 percent of homes covered by an NFIP policy. Louisiana, subject to hurricanes, ranks first at 25 percent. Although Minnesota doesn't see hurricanes, flooding can happen almost anywhere it rains or snows. On average, 40 percent of claims to NFIP occur outside of high-risk areas.

The National Weather Service says flooding typically peaks in April for most of Minnesota and in late April to early May for the Red River of the North and Rainy River basins.

"As the spring thaw approaches, we want to make sure Minnesotans don't assume their homeowners' policy covers them for flood damage," said Julia Dreier, Deputy Commissioner of Insurance. "It's important to know what types of water damage are and are not covered. And with severe storms and major rainfall events happening more frequently because of climate change, flood insurance may make more sense now even beyond spring."

The Weather Service says the risk of flooding this year is well above normal in the Twin Cities area and above normal in Northern Minnesota. The risk is closer to normal in the southern part of the state except for the Mississippi River basin. The Weather Service also cautions that the threat of major flooding depends on rainfall and temperature patterns in April. However, most of Minnesota remains covered by 12 to 20 inches of snow except in the far south, which is well above average for this time of year. The water held by that snow is a key factor in flooding. Minnesota has had this much water accumulated as snow in only five to 10 of the past 70 years.

In 2022, late winter snowstorms and rain, along with thunderstorms in May, led to high water and damaging flooding in central and northern Minnesota, with historic flood conditions near the Rainy River in far northern Minnesota.

Facts for Minnesota consumers about flooding:

1 inch of flood water can cause $25,000 in damage

90 percent of natural disasters in the U.S. involve flooding

You're 27 times more likely to experience a flood than a fire during a 30-year mortgage

In 2021, the average flood insurance claim payment through NFIP was $44,050 while the average flood insurance premium in Minnesota is $912 annually. Without insurance, homeowners typically rely on loans to recover from disasters. As a homeowner, renter, or personal property owner, you may apply to the Small Business Administration for a loan to help you recover from a disaster even if you do not own a business.

"The Department of Commerce recognizes flood insurance is an extra expense for family budgets," Dreier said. "But the costs of recovering from a flood can be high. We encourage Minnesotans to make sure they understand their risks."

Some homeowners' policies do cover certain types of water damage – if your pipes burst and flood your house, for instance, or if heavy rain enters through a damaged roof. Flood insurance kicks in when water travels over ground to enter your home, as with a rainstorm that floods your yard or a river that overflows and causes damage.

Private flood insurance is also an option and may offer higher maximums for appliances, clothing, and other damaged household items. Commerce suggests that homeowners discuss their risks and their options with a trusted insurance professional if possible.

RESOURCES

The MN Department of Safety offers guidance and resources to help you prepare for spring flooding

For questions about flood insurance, visit Floodsmart.gov or contact the Federal Emergency Management Agency Disaster Assistance Line: 800-621-FEMA (800-621-3362)