The historic August storm and subsequent flooding in Connecticut caused an estimated $300 million in damage to about 2,000 homes and businesses. Such extensive property damage has unsurprisingly led to a flurry of insurance claims. But there have been reports of a significant number of those claims being denied by insurers.
George Bradner, assistant deputy commissioner for property and casualty at the Connecticut Insurance Department, said inquiries to his office have revealed a troubling, familiar pattern.
“We've spent years trying to inform consumers that flood insurance is not a coverage under your standard homeowner’s policy,” Bradner said. “You should seriously consider getting flood insurance.”
Homeowners not buying flood insurance
Bradner said the mistaken belief that their homeowner’s insurance policies cover flood damage is not the only reason people forego flood insurance.
“One of the things we continue to hear is 'I've never flooded. I'm not in a flood plain. So why do I need flood insurance?’" Bradner said.
But Bradner says about a quarter of flood losses happen outside of flood zones designated by the Federal Emergency Management Agency.
“If it rains where you live, you can be prone to flooding,” Bradner said.
How expensive is flood insurance?
According to Nerdwallet, the average cost of flood insurance per year is $819. But Bradner cautioned that cost for flood insurance can vary widely.
“FEMA has been on a mission to try and make rates really be more reflective of what the risk and the exposure is. It's not as heavily subsidized as it used to be,” Bradner said. “So people that are in high risk areas are going to be paying more. But as I said, if you're not, that rate probably could be a few $100. It's worth getting a quote.”
And, while Bradner said not living in a flood zone is no reason not to buy flood insurance, it is a reason why you might get a better deal.
“You should consider your insurance is going to be cheaper because you're not in a FEMA-designated flood plain,” Bradner said.
Where to find a flood insurance policy?
Traditionally, private insurance companies have not been places to find flood insurance.
“That's why there's the NFIP (National Flood Insurance Program) and FEMA, the National Insurance flood program,” Bradner said. “Private insurers are not — generally not — interested in providing flood coverage.”
However, there has recently been a modest rise in private insurers offering flood insurance. In 2023, an analysis of data from the National Association of Insurance Commissioners found net premiums written for private flood insurance increased 3.7% from 2022.
FEMA also offers online resources to connect with all flood insurance providers.
What to do after you’ve been denied
The Connecticut Insurance Department is a state agency tasked with helping consumers in insurance matters. Bradner said his office has been advising home or business owners in hard hit Connecticut towns like Southbury and Oxford who’ve had insurance claims denied. He said that there may be three potential options still available to them:
1. Make sure to file claims for non-flood specific damage
“If there is a possibility a tree fell on the house because of the storm, and there could be a claim to the homeowner policy, I would encourage those insurers to contact the insurance department and we'll investigate it and try to see if there is any coverage for that individual,” Bradner said.
2. Non-flood specific federal assistance could be coming
“We're pulling together information right now to see if we can get an individual assistance declaration from the federal government for Connecticut,” he said.
That declaration could help homeowners receive up to about $45,000, according to Bradner.
“So you need to keep track of your damages and the losses that you've had and make sure you work with your community local disaster teams in getting that information to them.”
3. Get an Small Business Administration loan
“Very low interest, SBA loans could be made available to homeowners to help them make the necessary repairs,” Bradner said.
