Irene causes flood damage; most Maine homeowners and business owners without flood insurance

Now that Irene has passed with limited property damage from the winds and rain, we focus on the real source of danger: flood waters.

And while we spoke to a number of customers about their insurance coverage for damage from wind and rain, when asked about flood, their first comment always seems to be: "My property isn't in the flood plain." perhaps their second comment is "Doesn't the government provide disaster relief funds for people hurt by floods?"

Let me clear up some confusion for you.

1. Your homeowner’s or renter’s or commercial property policy does not provide coverage for flood. The coverage must be purchased separatel from the National Flood Insurance Program. See our flood insurance page for more information.

2. Most flood damage is not covered by federal disaster funds, and when it is, the aid is usually just a loan that needs to be repaid. Repeat - you get a loan, not a handout. 

3. 25% of flood claims are filed outside a high risk flood area, so just because you live outside the high risk area, doesn’t mean you’ll never have a flood loss. To illustrate this, note that every time there is flooding, even minor, there will be a report in the news of some person who says something like "I lived in this house 50 years and I've never seen the water that high." This report about storm damage in the Sun Journal contains just such a comment.

With these facts in mind, you may want to discuss the details of flood insurance coverage with your advisor.