Insurance Agents Flooded With Calls

The phone has been ringing a lot at Havelock's Nationwide Insurance since Aug. 12, the day the rains came.

While some have been filing claims related to the severe thunderstorm and flooding, more people are asking questions about flood insurance.

"We've been getting a lot of calls," said Frank Amato, a Nationwide agent.

He said most locations in Havelock are not considered to be in a severe flood plain, and thus flood insurance would not be required by banks and mortgage companies. But homes flooded along McCotter Boulevard and Pineview Street on Aug. 12 are among those not in the flood plain.

"Anywhere it rains, it can flood," he said.

Amato and Jody Hamilton, also a Nationwide agent, point to statistics that show that there is a 26 percent chance of a home being flooded over the course of a 30-year mortgage, compared to just a 9 percent chance of a fire.

Michelle Garcia, Matson AllState agency owner in Havelock, said her office has also been receiving a lot of calls.

"We will never tell anyone that they don't need flood insurance," she said. "People spend so much time worrying about car insurance. But, your house is so much more valuable. It's where you live. Why wouldn't you want to protect that?"

Amato said the process of getting flood insurance is relatively easy because the rates are fixed by the federal government, which backs the flood insurance program. He said insurance companies have the same rate.

Residents and business owners can pick from various options. For example, a structure covered for $100,000 with contents covered for $40,000 would cost the resident an annual premium of $257, or about $21 per month.

"If you don't live in a flood plain, it's pretty inexpensive," Garcia said.

Hamilton said many residents simply don't think about flood insurance if they are not required to purchase it.

"Out of sight, out of mind," she said. "But, it doesn't matter where you live, in the flood plain or not. You can get flooded."

Garcia said some people believe if they have a house with crawl space that they don't need flood insurance.

"There are a lot of vents and duct work in your crawl space that can be damaged," she said. "If you think you're safe because you're on a crawl space, you're not."

The agents point out that flooding is not covered in normal home-owner insurance policies. It is also not part of normal renter's insurance. A separate policy must be purchased to cover flooding.

There is a 30-day waiting period for the insurance to take effect except in cases of new building purchases or refinancing.

Amato said the Havelock Nationwide office has filed two claims related to flooding and about a half-dozen for lightning from the Aug. 12 storm, which dropped about 10 inches of rain in a five-hour period.

He said comprehensive vehicle insurance covers damage to cars from flooding.

Meanwhile, the office continues to answer the phone.

"Three-quarters of the people who have inquired about flood insurance have gotten it," he said. "We've been writing them non-stop."

The agents recommend residents contact their local insurance companies about flood insurance, and they say it's a good idea for residents to review insurance polices with their agents once a year.

Garcia said once disaster strikes, it's too late.

"If you lose your home, you still have to pay that mortgage and find another place to live," she said. "We've heard some sad, sad stories."