Iowa Insurance Commissioner Susan E. Voss announced today that the Iowa Insurance Division (IID), in collaboration with the Department of Natural Resources and Homeland Security and Emergency Management, has launched its flood awareness program statewide for Flood Awareness Month. Iowa Governor Terry Branstad signed a proclamation officially declaring March as Flood Awareness Month in Iowa.  

The “Don’t Test the Waters” public information program will educate Iowans on how to prepare for a flood, protect property from flooding and determine if flood insurance is appropriate for them.
“The Floods of 2008 caused 85 of 99 Iowa counties to be declared disaster areas,” said Commissioner Voss.  “Unfortunately, many Iowans learned the hard way that you don’t have to be in a high-risk zone to become a victim of flood devastation—a flood can happen to anyone and at any time of the year.”

Floods are normally associated with spring snow thaw and heavy rains, causing rivers or lakes to rise above the flood plain levels. Last year, Iowa also saw flooding from levee or dam overflow or failure. New construction and development along with changes in agricultural drainage and changes in crops being planted may also contribute to an increased likelihood of more flooding in the future. Even for residents who live miles from any body of water, quick snowmelt, ice dams and intense rains can cause flash flooding in low-lying areas or cause sewers to back up in basements.

“That is why it is more important than ever to educate Iowans of their flood risk. It only takes a few inches of floodwater to cause tens of thousands of dollars in damages. Flood-related damage, and that from sewer backups, is not covered in most homeowner policies,” said Voss. “It is equally important to help Iowans start planning now to be ready for potential floods by taking the appropriate steps to reduce the impact of flooding to their homes, businesses, families, pets and finances.”      

One option that becomes apparent during the planning process is purchasing National Flood Insurance Program (NFIP) flood insurance, which is sold through qualified insurance agents and administered by the Federal Emergency Management Agency (FEMA). The NFIP offers flood insurance to homeowners, renters, and business owners, if their community participates in the NFIP. As a condition of making it possible for their residents to purchase this important protection from flooding. Participating communities agree to adopt and enforce ordinances that meet or exceed FEMA requirements in order to reduce the risk of property damage from flooding.

Flood insurance is required for buildings in high-risk flood areas as a condition of receiving a mortgage from a federally regulated or insured lender, as well as for properties that have received FEMA assistance in a previous flood. Failure to carry flood insurance could result in the denial of future federal disaster assistance.

“In addition to those Iowans who are required to carry flood insurance, residents living in low- to medium-risk areas may find purchasing flood insurance voluntarily is also a good option for them, with Prefered Risk Policy (PRP) rates starting as low as $129 per year for building and contents protection,” said Voss.  “Nearly 25 percent of flood insurance claims come from residents and businesses in these lower-risk areas.”

The Iowa Insurance Division and its agency partners have created several online planning tools to assess flood risk and insurance rates, determine in which communities NFIP flood insurance is offered and decide whether NFIP flood insurance is a suitable purchase for each individual’s unique situation. The assessment and other guidance, such as tips for preparing for a flood and protecting assets and family, a list of local flood insurance agents and important policy questions to ask insurance agents, can be found on the program website, www.DontTestTheWatersIowa.gov.    

“Flood Safety Awareness Week presents a good opportunity to prepare by making a plan and putting together an emergency kit; protecting your property by installing a valve to stop sewer backup in your basement; and purchasing flood insurance, if it’s right for you,” said Voss. “We encourage Iowans to visit www.DontTestTheWatersIowa.gov and discover many other tips on how to prepare, protect and possibly purchase flood insurance for peace-of-mind. Most flood insurance policies take 30 days to become effective, so the time to take action is now, not when you hear that the river is rising.”

In addition to a website, the public education program includes a brochure, an advertising campaign to raise awareness of the program, direct marketing and town hall meetings in communities most heavily affected by the floods in 2008 and 2010.  The state of Iowa’s Flood Awareness Month is March and the National Flood Safety Awareness Week runs March 14-18. Funding for the program is provided through a federal Community Development Block Grant.

About the Iowa Insurance Division
The Iowa Insurance Division (IID) has general control, supervision and direction over all insurance and securities business transacted in the state, and enforces Iowa’s laws and regulations. The IID investigates consumer complaints and prosecutes companies, agents and brokers engaging in unfair trade practices. Consumers with insurance or investment questions or complaints may contact the IID toll-free at 877-955-1212, or visit the division on the Web at www.iid.state.ia.us.