Flood protection poses concern for Ohioans

By RICHARD L. BOCCIA

The danger for flooding may be greater than Valley residents realize.

Many homeowners affected by floods in Indiana, Iowa and Wisconsin this spring thought they had adequate flood insurance. They were wrong.

That’s the warning from the Ohio Department of Insurance, which is urging Ohioans to check their insurance to see what flood damage it covers.

Separate coverage may be required, and the average flood policy in Ohio costs $500, according to a spokesperson for the department. Flood damage from 1 to 4 inches of water could cost $7,800, according to the National Flood Insurance Program, which reports it pays out an average claim of $26,000.

Violet Gizdic sells insurance in Mahoning and Trumbull counties for her family agency, Miller Insurance of Niles.

“You can’t predict when you’re going to be in a flood,” she said, adding that in order for flood insurance to kick in, two adjoining properties must be affected.

Gizdic frequently explains to clients the difference between flood insurance and that for sewer and drain backups, which is much cheaper: perhaps $35 to $50 annually, depending on the company. Backup insurance is more popular than flood, in her experience.

“Ninety percent of the time, they don’t take it [flood insurance]. The only ones that do are required by their lender,” Gizdic said, given the economic crunch that she says has area residents pinching pennies.

The danger for flooding may be greater than Valley residents realize. Over 30 years — a standard length for home mortgages — the chance of a home suffering fire damage is 9 percent, but there’s a 26 percent chance of flood damage in that same period, according to the National Flood Insurance Program.

The program also reports that a third of flood insurance claims in 2007 came from people living in low flood risk areas. The program reports that in 2006, flooding occurred in all 50 states.

More than 5 million Americans have flood insurance, which is purchased from licensed home insurers.

Misconceptions that flood insurance is part of a homeowners policy may be widespread. A survey conducted by the National Association of Insurance Commissioners found that a third of heads of household incorrectly thought their standard insurance covered flooding. The association says that many who faced disaster learned the limits of their coverage the hard way.

Jim Klingensmith sells insurance as vice president of L. Calvin Jones and Co. in Canfield. The company focuses on business insurance, but also sells policies to homeowners, and frequently has to explain the insurance definition of flood to clients.

“They have no clue. And a lot of agents don’t,” Klingensmith said, adding that his company has sought continuing education courses on flood insurance. The Ohio Department of Insurance has required such training since January 2007.

About 20 percent of Klingensmith’s clients purchase flood insurance. Many of those only do so because of proximity to a body of water, he said, but a flat area can create water runoff that could cause damage.

“It’s amazing how many people don’t choose to buy it. They still don’t feel they’re susceptible,” he said.

Most traditional home insurance policies do not cover sump pump failure in a major downpour or flooding from a backed-up sewer, according to Ohio Department of Insurance.

National flood insurance is mandated in some areas by the Federal Emergency Management Agency through the National Flood Insurance Program. Communities that don’t take part in the program may not get federal financial assistance after a flood.

Communities in Mahoning County taking part in the federally funded program are Beloit, Campbell, Canfield, Craig Beach, Lowellville, Poland, Sebring, Struthers and Youngstown.

In Trumbull County, they are Cortland, Girard, Hubbard, Lordstown, McDonald, Newton Falls, Niles, Orangeville and Warren.

In Columbiana County, they are Columbiana, East Liverpool, East Palestine, Hanoverton, Leetonia, Lisbon, Minerva, New Waterford, Rogers, Salem, Salineville, Washingtonville and Wellsville.

rboccia@vindy.com