'What are we supposed to do?' With flood insurance not an option, West Allis neighbors face unaffordable road to recovery

MILWAUKEE (CBS 58) -- Thousands of flood victims throughout the area are staring down seemingly insurmountable costs to clean up and rebuild after last weekend's historic storms.

In many cases, insurance is not covering their damage because they don't have flood coverage. And for most, flood coverage was never an option they could have taken advantage of.

We walked through a devastated West Allis neighborhood Friday, August 15. Many of the homes had entire walls collapse from the weight of the water, and some people are now looking at $200,000 estimates to rebuild.

That's not an option for most. Neighbors say they're running out of time, they're running out of money, and it often feels like they're alone.

Katy Thekan is facing costly repairs after her house's wall caved in. She told us, "What are we supposed to do? What? This neighborhood is going to be abandoned. People aren't going to stay."

After harrowing stories of survival, Thekan and other flood victims are now facing the grim uncertainties of a prolonged and expensive recovery process that may price them out of their homes.

She said, "I'll never forget the sounds the house was making. I didn't think I'd ever have to go through that."

There are still countless questions but few answers, and the ones they are getting are devastating.

Thekan's West Allis neighborhood was built directly over Honey Creek. Water surged four to five feet during the storm.

A 2008 flood was a wakeup call for many in the neighborhood who had several feet of water dumped into these same houses, like Carrie Garland's. She told us, "We tried to get flood insurance, and we were told we're not eligible because we're not in a flood plain."

After the 2008 flood, David Krajewski wanted to buy flood coverage to protect his antique clock collection. "I asked our insurance agent, 'Is flood insurance available?' And they said, 'We don't offer that.'"

80% of his antique collection was destroyed this week when his wall caved in and mud and water poured into his lower level.

Krajewski told us, "It's not like I missed something. It just wasn't available."

Absent insurance coverage, everyone is now forced to go it alone. Some have already gotten estimates, and it's not good.

Thekan said, "Our quotes were coming in at $40,000 to $100,000, just for structural repair."

Krajewski said, "Somewhere between $100,000 and $200,000."

And Mitchell Berge told us, "'What you're looking at could be in excess of $100,000.' That's just for redoing the foundation."

Berge bought his house just blocks from his parents in the neighborhood he grew up in. He put $60,000 of work into the home that shifted off its foundation during the storm.

Berge said his "Entire front wall collapsed, taking out all the pipes, all plumbing, all electrical." Now, his estimated damages are more than the home is worth, and he's considering bulldozing it.

Many fear lots of people will cut their losses and get out.

Garland said, "Oh yeah, a lot of them have already decided that. We're not sure, playing it a day at a time, a step at a time."

Thekan said cash buyers are already zeroing in. "They're getting cash offers as we speak and they just don't want to deal with it."

We asked if she had gotten an offer yet. She said, "I've gotten three." Is she interested? "You know, it does sound appealing to walk away," she told us.

A few of the people we spoke with have provisions for damages from a sewer backup, but those are only paying out $5,000 or $10,000.

They said they're spending that much just to clean up the mud and mold, before even thinking about their damaged foundations or rebuilding their homes.

A GoFundMe has been started to help Mitchell Berge cover some of his damages.

A GoFundMe has been started to help Katy Thekan cover some of her damages.