Published July 1998 — Download PDF of the original newspaper column
Byrd's-Eye View By U.S. Senator Robert C. Byrd Insuring Against Flood Losses
As West Virginia is heavily involved in rebuilding and recovering from this latest round of severe flooding, we are all reminded of the need for flood insurance. Homeowners' insurance policies do not cover flood damage. Too many people learn this fact only after the floodwaters have ripped through their homes, which is why it is so important to carry flood insurance. In the spring of 1997, when heavy rains caused destruction in 16 West Virginia counties, more than 3,700 people applied for disaster assistance from the Federal Emergency Management Agency. Of those claimants, fewer than nine percent had flood insurance. The National Flood Insurance Program (NFIP) licenses insurance agents and companies which then make flood insurance available to people living in communities that adopt and enforce flood plain management plans. In West Virginia, 262 communities participate in the NFIP. Residents can purchase flood coverage through any licensed property insurance agent who is in good standing with the West Virginia Department of Insurance. Premiums vary according to the property's flood risk, the amount of coverage purchased, the deductible selected, and the type of building being insured. Across the country, the average premium is about $300 a year for about $98,000 in coverage. The policies can cover homes, apartments, and other types of residential and commercial property. Until the late 1960's, most property owners could not purchase insurance against flood damage. Private insurance firms, afraid of the potential for catastrophic losses, did not want to assume the financial risk alone. In 1968, Congress took steps to lift that burden by creating the NFIP to provide affordable insurance to people who live in areas with the greatest risk of flooding. In 1996, the Flood Insurance Program almost ended. However, I cosponsored an amendment to a federal funding bill that extended the program's authorization. Since then, the NFIP has been able to move ahead and provide affordable insurance coverage to people living in high-risk areas. I have seen the destruction caused by flooding in West Virginia. In many cases, victims never imagined that a flood would strike their home, and the damage is often not severe enough to warrant a federal disaster declaration. Flood insurance is the best way to ensure that you will be compensated for any losses that occur, no matter what the strength of the floodwaters. July 15, 1998