FEMA asks residents to consider flood insurance

With another layer of snow building up throughout Eastern Iowa, FEMA is now telling people to consider flood insurance for when the thaw eventually hits.

“With the amount of snow Iowa has had, there is always that danger,” said Bettina Hutchings of the FEMA office in Cedar Rapids.

Hutchings said flood insurance differs from most other types of home or business protection because of the federal government's role in paying out on claims.

“The government offers flood insurance, FEMA manages the program and we use agents to sell that coverage,” said Hutchings.

Carolyn Lathrop of the Lathrop Insurance Agency in Cedar Rapids said she is getting more calls about flood insurance.  Most flood insurance policies have a 30-day post-purchase waiting period to become eligible to file a flood-related claim.  As a certified agent to sell flood insurance, Lathrop is trying to get the correct information about flood insurance out.

“They think you have to be living next to a river,” said Lathrop.  “This can happen from any surface water.  If a sewer is backed up, that can get handled by flood insurance.”  Lathrop said the flooding from sewers last August near Indian Creek in Marion is an example where flood insurance can cover policy holders.

FEMA classifies flood insurance for property in two different areas: “preferred risk” and “special flood hazard areas”.  In an example, FEMA claims a preferred risk premium for $100,000 coverage on a home plus $40,000 on contents would cost about $287 annually.  Yet a similar policy in a special flood hazard area, with a history of flooding, would call for a premium of about $1,577 each year.

Deb Christensen of Art 2 Embroidery in the Czech Village made a critical decision in the early days of June of 2008.  When she purchased a building on 16

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Avenue SW, Christensen decided to pay for flood insurance.  Since she was buying the property, the 30-day waiting period was waived.

Christensen said, a week later, eight feet of water filled her business.  “It was very critical,” said Christensen.  “Without flood insurance, we would have never been able to reopen.”

Lathrop said an ideal first step for people considering flood insurance for this spring is to go to the government's website, www.floodsmart.gov, and search for a government-certified flood insurance agent.

On a quiet afternoon at Art 2 Embroidery, Christensen looks outside to 16

“The raindrops make us nervous sometimes,” she said.

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Avenue SW and the thick snowflakes blowing in the street.  She said she doesn't know how many of her neighbors have enough flood insurance for what may come when the thaw hits.  Yet Christensen said anything wet falling from the sky is never far from the minds of those in the Czech Village.