Flood Insurance Story Archives - West Virginia Public Broadcasting

Flooding Committee Hears Update On Damage And FEMA Response

The community has not received a disaster declaration from the Federal Emergency Management Agency (FEMA) yet. If there is a FEMA declaration there will be public and individual assistance. Public assistance will aid in recovering infrastructure while individual assistance will help homeowners.

The legislature’s Joint Committee on Flooding met Sunday to discuss the recent flooding in eastern Kanawha County.

Members of the committee learned that two homes were completely destroyed, 32 homes have major damage, 54 homes have minor damage, and 22 private bridges were destroyed in the flash floods that took place along Little, Fields, and Slaughters creeks in late August.

Director of Kanawha County’s Homeland Security and Emergency Management, C.W. Sigman says only 9 percent of residents affected by the flood had flood insurance.

“They are not going to get compensated 100 percent. They’ll have enough money, if we get a FEMA declaration, to kind-of get them back on their feet,” Sigman said.

Emergency Alert Sytems

Sigman also discussed the need for better alert systems for rural communities since many flood victims did not receive any emergency warning until after the flood had begun.

“We’re looking at putting sirens in. We just put some in in the Loudendale area,” Sigman said.

However Sigman said that sirens are not the most effective alert system in mountainous regions like West Virginia. He said that better cell phone connectivity would be another possible way to reach rural residents.

“I am an old volunteer firefighter. Sirens (are) not very good at alerting volunteers. It’s not gonna be very effective for alerting the public,” Sigman said. “So that wireless emergency alert is a proven performer on your cell phone.”

FEMA Makes W.Va. Disaster Response National Priority

West Virginia is not a hurricane landfall or in tornado alley, but with 20 federally-declared disasters over the past ten years, the Federal Emergency Management Agency (FEMA) has a permanent team dedicated to the Mountain State.

West Virginia’s numerous natural disasters, including floods, Derechos and ice storms have put the state toward the top of the list for federal response efforts.

James Young, disaster field coordinator for FEMA’s West Virginia office, said while most states have two or three responders at a time, about 30 members here work as an integration team. He said the team mission – under blue skies or other – is to ease the process before, during and after a severe weather disaster hits.

“Just given the numerous disasters that you have here, we have a team here working towards improving preparedness and working through the response and recovery phase. The team is also looking at mitigation activities that help reduce risk for future disasters,” Young said. “The idea is that we have FEMA assets in West Virginia working day in and day out with partners such as the West Virginia Emergency Management Division, knowing that it’s really important to be coordinating before disasters hit.”

During this Flood Safety and Severe Weather Awareness Week, FEMA suggests everyone have a disaster ‘go-kit’ ready.

“Which is essentially a bag full of things like water, and non-perishable foods, having batteries, and having important documents ready to go,” Young said. “And in the event that you need to evacuate at a moment’s notice, have all those ready to go so that you can get to a safer place.”

Young suggests everyone know about floodplains, even if they don’t live in one.

“West Virginia has a great tool called the West Virginia Flood Tool, which shows where you are in relation to the floodplain,” Young said. “So that you can know in terms of your risk and potential for getting flood insurance and what that may cost.”

A West Virginia native, Young also suggests that everyone should look into flood insurance.

“We’ve seen time and time again that places that have never flooded before are now being impacted. So it’s something that we recommend people talk to the local insurance agents to understand their risk, see what a policy will cost,” Young said. “And if you do sign up, that policy could take effect within 30 days. With the spring flooding that usually occurs right on the horizon, now’s a perfect time to look into that.”

FEMA to Provide Additional Rental Assistance to Flood Victims

The Federal Emergency Management Agency has announced that it will provide additional rental assistance to victims of the June floods.

FEMA said that victims who have already received rental assistance who have not already received a letter and a form in the mail will receive one soon. Households must return the completed form in addition to the following documents to apply for assistance:

Utility bills from before and after the disaster
If the victim is a renter, a copy of his or her pre-disaster lease
For renters or homeowners, a copy of the current lease or rental agreement signed by the person who applied for FEMA assistance and the landlord
Rental receipts, canceled checks or money orders showing that the victim used his or her rental assistance to pay rent or a security deposit
Income statements from before and after the disaster for all wage earners living in the household.

FEMA said that it has awarded assistance to more than 2,500 flood victims of the recent floods in West Virginia.

Flood Insurance Subsidy Revamp Targets W.Va. Hard

West Virginia has the highest percentage of flood insurance policies that will see premiums rise as part of the federal government’s overhaul of a subsidy program, according to an analysis of government figures.

     Some residents targeted by the change are rattled and say they can’t afford thousands of dollars in higher costs, and business owners worry the move will irrevocably hurt them.

     In 2012, Congress enacted a law that redrew the Federal Emergency Management Agency’s flood zone maps and required about 1 million policyholders to begin paying rates based on the true risk of flooding at their properties.

     An outcry about the one-time increases prompted Congress this month to amend the law. Instead, policyholders would pay premiums that increase gradually each year.

     An Associated Press analysis of government data found that of the 21,000 West Virginia homes and businesses in the National Flood Insurance Program, 57 percent face premium increases. Those are the roughly 12,200 policyholders receiving subsidies in the state.

     Indiana, Michigan and Vermont were the next highest at 53 percent.

     Two-thirds of the last 60 federally declared disasters in West Virginia have been flood related. The state has 32,000 miles of rivers and streams, and flash-flooding hits many areas, especially where there’s runoff from mountains. A few of the surrounding communities are protected by floodwalls.

     “Flooding affects every county in the state,” said T.D. Lively of the West Virginia Division of Homeland Security and Emergency Management.

     In 2004, the remnants of Hurricane Ivan ravaged urban areas and was one of the most expensive disasters in state history.

     West Virginia policyholders pay nearly $18 million in premiums under the federal flood program. The total amount of property covered is $2.7 billion.

     In the Northern Panhandle community of New Martinsville, more than 900 homes had water damage from Ivan. It’s where Bart Cannizzaro bought a house in foreclosure a year ago. The house, built in 1902, has never sustained structural damage from flooding.

     A bank notified Cannizzaro in December that his flood insurance premium – a requirement of his federally backed mortgage – had lapsed and he had to pay a temporary rate of $1,200, plus have an elevation survey completed within a month at a cost of at least $500. The lower the house is below the flood plain, the higher the insurance rate, which he has the option of either adding to his mortgage or paying up front.

     Under the law, nearly 9,000 West Virginia homeowners could see annual flood premium increases of up to 18 percent, while about 3,200 owners of businesses and second homes face increases of a mandatory 25 percent.

     Cannizzaro expects his rate to increase to about $4,000 – including a $5,000 deductible.

     “I’m not crying here, but we live on a paycheck-to-paycheck basis,” he said. “If this premium held, I could pay this house off in 10 years with the flood insurance I’m paying.”

     Now that President Barack Obama has signed the bill into law, Cannizzaro plans to have his insurance company reconfigure his rate.

     “This house will never see a flood claim unless the entire valley is wiped out. That’s my issue with this,” Cannizzaro said. “If I wasn’t required to have flood insurance, I wouldn’t be holding it. I wouldn’t be covered for anything.”

     The state Legislature this month passed a bill to create a private flood insurance option. The bill’s sponsor, Sen. Rocky Fitzsimmons, said the federal changes are hurting the state’s housing market because homebuyers may not be able to afford flood insurance. In addition to purchasing a plan to replace a home, homeowners could opt to insure only the outstanding amount of their loan.

     The northern Panhandle was decimated by job losses in the steel industry in the past decade. To Wellsburg business owner Fred Marino, the cost of rising flood insurance “will essentially probably finish our little town off,” he said.

     In 2012, Wellsburg received a federal grant to remove 10 flood-damaged structures whose property then became open space. Marino’s auto service business has never flooded, but because the local flood plain includes a tiny corner of his shop, he’s being told to buy flood insurance.

     And despite living in one of the highest elevations in town, Marino said he’ll have the additional expense of going from $494 annually to $2,300 to pay for flood insurance on his home.

     “It’s not very fair to the small little communities that are on the river,” he said. “It’s going to affect my whole town. If you have a business, there’s no way you’ll ever going to sell it. (If) you go out of business, it’s over.”

Bill Tackles Flood Insurance Problem

A bill that would create a private flood insurance option has been introduced in the West Virginia Senate.

The sponsor is Sen. Rocky Fitzsimmons, who says federal law changes in 2012 under the Bigger-Waters Flood insurance Reform Act have caused significant increases in premiums for West Virginia.

He explained that prospective home buyers who try to secure a loan through a bank are required to purchase flood insurance, a cost that is greatly affecting the housing market.

The bill would also allow a greater option of flood insurance plans. In addition to purchasing a plan to replace a home, homeowners could opt to only insure the outstanding amount of their loan.

Senate Bill 621 has been referred to the committee on Banking and Insurance.