We like to make sure the information from our experts is readily available.. and, earlier this week, our Financial Expert, Rose Oswald Poels from the Wisconsin Bankers Association was on to share information about flood insurance.  For some, the information may seem too late.  But the current flooding throughout southern Wisconsin is something we can all learn from.

Here is the information Rose wanted to share with you, below:

June 18, 2008 

Flooding is the most common natural disaster in the .  From 1965 to 2003, over 98% of the entire country, at one time or another has been declared a Presidential flood disaster.

What constitutes a flood?

A flood occurs when either two or more acres of normally dry land, or two or more properties suffer partial or complete inundation of water from one of the following:

• Overflow of inland or tidal waters;

   

• Unusual and rapid accumulation or runoff of surface waters from any source;

   

• Mudflow;

   

• Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above.

   

Even a small amount of water in a home or business can cause damage.  Some of the damage estimates people could expect with a flood include:

·         The Flood Emergency Management Agency (FEMA) offers a very helpful, interactive website (www.floodsmart.gov) where consumers can view, by adjusting the water level height, how much a flood of varying depths could cost them.

*Assumes a 900 square foot ranch home with main level suffering water damage

Banks are required to conduct flood determinations when making a loan, but flood insurance is not always required.  Why?

·         Financial institutions are required to conduct a flood determination every time a loan is made, extended, increased or renewed.

·         Flood insurance is only required when the property is in a flood hazard zone and the community where the property is located is a participating community in the National Flood Insurance Program (NFIP).

·        To learn if your community participates in the NFIP, visit www.floodsmart.gov or contact your local municipality. 

·         In Wisconsin, approximately 90% of the communities prone to flooding participate in the NFIP.

·         Even when flood insurance is not required according to the law, many bankers still make their customers aware of the availability of privately-purchased flood insurance because it is inexpensive.

How expensive is flood insurance and is it always available?

·         If you live in a community that participates in NFIP, you are eligible to purchase low cost flood insurance to protect your property for as little as $119 per year. 

·         If you live in a community that does not participate in NFIP, flood insurance may still be available from private insurance companies.  It is individually underwritten so while the majority of the time, flood insurance will be available, it may not literally always be available.

·         Flood insurance protects against losses to both buildings and their contents, not the land surrounding them.

·         Flood insurance covers both homes and businesses.  Coverage amounts can be as much as up to $250,000 of insurance to protect your home and up to $100,000 to protect its contents.

Who should people contact if they want to learn more about flood insurance?

·         If you have a loan on your property, you can certainly always contact your banker.

·         However, flood insurance is sold through private insurance companies and there are about 85 different companies that sell flood insurance.

We asked Rose live on the air about the repayment question.  The answer there, is yes.  However, Rose said the best thing a home or business owner can do is work with their lender to figure out a situation best for everyone.