Flood Victims Face Insurance Woes

MEMPHIS, Tenn. - As if losing just about everything to flooding isn't bad enough, some flood victims are finding out the insurance coverage they thought they had doesn't exist. Now they're faced with no way to recoup their losses.

FEMA is the most hope some of the flood victims have. For others, it's a hard, expensive lesson learned. For insurance agents, it's a teachable moment so the next time this happens, fewer people will fall victim to Mother Nature.

Eula Horrell said she dodged the severe weather bullet that shot towards Tennessee on May 1st.

"I could not believe the amount of rain we had that weekend," said Horrell. "I've never seen any rain like that in Memphis in my life."

The rain that hovered over the state for nearly two days dumped inches of water outside, some of which crept inside homes forcing families elsewhere.

Insurance agent Kathy Thurmond-Edwards said, "We've been busy with a lot of phone calls inquiring about flood insurance." Thurmond-Edwards said it's a common misconception that a homeowner's policy covers flood insurance.

"When we're talking about flood, we're talking about areas of land that is normally dry and it floods and it enters in your house as surface water. That requires a separate flood policy," she explained.

The average policy is priced at about $400, but the sticking point that discourages many is that the money must be paid upfront. It's just another reason why people don't buy into the weather safety net.

"Most people don't have flood insurance because their lender didn't require it, but anybody can get flood insurance," she said.

Renters and buyers can all purchase a policy, whether you live in a high-risk flood zone or not. Better safe than sorry is what insurance agents often suggest. But Frayser resident Jamie Berner isn't buying what they're selling.

"They're misleading, very misleading," said Berner. "A lot of character clause in them. You've just got to watch what you reading."

Thurmond-Edwards agreed, saying "My advice is to do something unusual. Read your homeowners policy. It is a contract, and you can tell what's covered and not covered."

Thurmond-Edwards suggested making an appointment with your agent if you need clarity about coverage or your contract.

The good news for some flood victims, if you have comprehensive coverage on your car insurance, then you have flood coverage for your vehicle if it took on any rain water.



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