flood insurance

Mandate flood insurance

(THE TIMES TRIBUNE)  - Amid unseasonably warm weather that has rapidly melted a deep snowpack, and forecasts for substantial rain, state Insurance Commissioner Joel Ario quite rightly reminded Pennsylvanians this week that their homeowners’ insurance doesn’t cover flood damage. He recommended that they look into buying flood coverage under the federal flood insurance program (www.floodsmart.gov).

The average damage claim for a flood-damaged home in 2009 was more than $33,000, according to the flood insurance program. And 25 percent of the damaged properties were in areas that were rated as being low to moderate risks.

In such areas, flood insurance can be purchased for as little as $119 a year. Premiums are higher in higher-risk areas, based on an array of factors including the age of the house, its condition and history.

While it would be wise for homeowners to acquire flood insurance where appropriate, there is little incentive for them to do so, as a practical matter, because the government most often compensates property owners for damages regardless of whether they are insured.

Federal and state governments should switch the call for flood insurance from a suggestion to a mandate. The federal government should borrow a page from the way it establishes uniform national highway safety and speed standards. States that do not comply are denied a percentage of highway funding. Congress should mandate flood insurance in flood-prone areas, and penalize states that do not comply.

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