Connecticut regulator urges residents to buy flood insurance

Connecticut’s insurance regulator is urging state residents to purchase flood insurance to protect their homes and businesses after recent flooding in New Haven, Fairfield and Lichtfield counties.

US Federal Emergency Management Agency (FEMA) ask homes and businesses in high flood risk areas (also called 100-year flood plains) with mortgages from government-backed lenders to have flood insurance. This also applies to properties with a home loan, home equity line of credit or construction loan. FEMA administers National Flood Insurance Program (NFIP) and currently updating their flood assessment system.

The counties that experienced flooding in August were all in FEMA-mapped 100-year floodplains, and every community in the state has these floodplains, according to Diane Ifkovic, environmental analyst and NFIP coordinator for the Connecticut Department of Energy and Environmental Protection . “If you see water, there is probably a risk,” she said in a written response.

Steven Noreyko

“Flooding is the most frequent and costliest natural disaster in the U.S., and Connecticut is not immune to this risk,” said Andrew Mais, Connecticut’s insurance commissioner and current SC chair. National Association of Insurance Commissionersin a press release. “The recent storms serve as a stark reminder that flood damage can happen anywhere, not just in designated flood zones. Homeowners, renters and business owners need to understand that standard insurance policies do not cover flood damage. The best way to protect your property is through the National Flood Insurance Program (NFIP) or private flood insurance.”

According to Connecticut’s insurance regulator, 25 percent of all U.S. flood losses occur outside FEMA-designated flood zones. NFIP insurance covers up to $250,000 for structural damage to homes and up to $100,000 for personal property. Commercial business owners can also purchase coverage, with up to $500,000 available for non-residential buildings. The average NFIP premium ranges from $800 to $1,200 each year.

Flood insurance policies typically have a 30-day waiting period before they take effect. Several states in the eastern US have seen a decrease in covered properties through flood insurance.