Flood victims realize insurance won't cover damage, insurance agent offers tips
WAUWATOSA, Wis. (CBS58) -- Our communities all over Wisconsin continue cleaning up after this weekend's historic flooding. In recent days, we've heard from many of you that your insurance may not cover the damages.
As you go down Menomonee River Parkway in Wauwatosa, you can see all of the damage that the flooding has caused, tossed on the curb. That includes James Moore, who says his basement was completely flooded, estimating at least half a million dollars in losses.
But, he says, their insurance won't pay for a thing.
“Another window broke and another broke! I got ten windows in the basement of the house, and eight of them, water is rushing in the house!” said Moore. He told us he was asleep when his wife, who was sewing in the basement, heard windows breaking and water rushing in.
“Water was everywhere, and it was rising and rising and rising! What can you do about this?” he continued. He and his wife quickly packed a bag and got out of the house, as water eventually rose so high that it seeped from the basement through the floors onto the ground level.
Moore realized too late that he didn't have flood insurance: “when I bought my insurance, I did not read the policy. If I had read the policy, I would've known I didn't have flood insurance. I would have bought insurance. My advice to them is to read your policy.”
Justin Staebler, an insurance agent, tells us no standard homeowners policy covers floods. “I can say probably the majority of the time that you have that conversation, everyone will be like, no, no, I don't want it. But today, that the flood has happened, everyone said ‘I would have absolutely taken it,” he said.
Thinking about your risk is crucial, said Staebler. “What do I want? Do I want to have flood coverage? Or do I want to self-retain that risk?”
Most homeowners choose not to add flood insurance to their plans because they think they won't need it, and the cost varies drastically, said Staebler. He says he's seen some people pay from $700 per year, to upwards of $40,000 a year.
“That was an act of God, all that rain! They won’t pay for it, but what can you do? You can get mad; you can get upset but then you gotta get back to this!” said Moore. He’s kept an optimistic outlook on the situation and thanks the community for all of their help. His basement is a complete loss, having to even rip out the drywall up to about three inches from the floor of the first floor of his home.
The biggest recommendation from Staebler is speaking with your insurance agent directly and say, "I have water in my basement," instead of saying "my basement flooded". He explained that most of us are not professionals in houses, so we may not fully understand where the water came in from. If it came in because your sump pump failed, that could be covered, while flooding, which means water came in over your walls, may not be.
Some insurance carriers are now looking at adding flood insurance as an "add-on policy" continued Staebler.
The Office of the Commissioner of Insurance (OCI), meanwhile, has other tips and reminders for Wisconsinites who may have experienced property damage from recent flooding. They say, because homeowners' insurance does not cover flood damage, it’s crucial to document any damage you have, communicate it with an insurer, and consider filing a claim. “If a presidential disaster declaration is made and FEMA assistance is made available to Wisconsinites impacted by flooding, homeowners may need to provide proof of a denied homeowners' insurance claim before they are able to receive FEMA assistance.”
Below are additional recommendations from OCI for those impacted by flooding:
- Make a list of damaged items
- Take photographs of the damages before you begin to clean up.
- Keep damaged swatches (carpeting, upholstery, curtains, etc.) if possible
- Don’t throw out any damaged property without the claim adjuster’s agreement.
- Keep all receipts that document the cost of the repairs or the replacement of damaged items.