Homeowners should review flood insurance

Andy Holtmann

Tuesday, Aug. 12, 1997 | 10:01 a.m.

Local insurance companies say one in three people do not even know that flood insurance exists.

With more harsh storms expected due to El Nino, an atmospheric change in the Pacific Ocean, agents with the Western Insurance Information Service are urging homeowners to review their insurance needs.

Spokeswoman Stephanie Saari said flood damage is generally not covered under home insurance policies. Most people think that floods are covered, so they don't think twice about it, she said.

"This is something that people should be looking into before it rains," she said. "It really depends on where you live and what you have experienced in the past. With El Nino coming in the winter, though, anything is possible."

The desert Southwest is well known for the rapid formation of floods with only a small amount of rainfall. Ron McQueen, a meteorologist with the National Weather Service, said areas such as Las Vegas can flood with as little as a half an inch of rain.

The addition of storm channels and drainage systems have helped control flooding in the Las Vegas Valley to the extent that mortgage companies no longer require flood insurance.

Saari said, however, that it is generally wise to be safe rather than sorry. She said many people choose not to get flood coverage because they think that if one were to occur, they would be covered under federal disaster aid.

"That happens less than 50 percent of the time," she said. "For them to get any sort of aid, the area has to be declared a federal disaster area. Furthermore, disaster aid is only a loan and has to be paid back."

Doreen Bonnet, a spokes woman for State Farm Insurance, said that while they do not offer direct flood insurance for the homeowner, they do service a policy through the federal government. In most cases, homeowners have to go through a local agency to get federal coverage. Bonnet said many people in the West are not interested in the policy. They simply don't see the need.

"Through June 1997, only 2.3 percent of our 82,886 policies included flood insurance," she said. "After floods such as the Reno flood in January of this year, we seem to see a gradual rise in requests for flood coverage. Those figures eventually go back down, though."

Saari said the Federal Emergency Management Agency usually supplies cities with maps that show flood hazard areas. Concerned residents are encouraged to pick one up or call the agency for assistance.

"It may be worth the money you pay now, when you can save your possessions in the long run," Saari said.