Connecticut regulator urges residents to buy flood insurance

Connecticut's insurance regulator is urging the state's residents to buy flood insurance to protect their homes and businesses, after recent floods in New Haven, Fairfield and Lichtfield counties.

The U.S. Federal Emergency Management Agency (FEMA) requires homes and businesses in high-risk flood areas (also called 100-year floodplain areas), with mortgages from government-backed lenders, to have flood insurance. This also applies to properties with a home loan, equity line of credit, or construction loan. FEMA administers the National Flood Insurance Program (NFIP) and is currently updating its flood rating system. 

The counties that saw flooding in August were all in FEMA-mapped 100-year floodplains, and every community in the state has these floodplains, according to Diane Ifkovic, environmental analyst and NFIP coordinator in the Connecticut Department of Energy & Environmental Protection. "If you see water, likely there is a risk," she said in a written response. 

Steven Noreyko

"Flooding is the most common and costly natural disaster in the U.S., and Connecticut is not immune to this risk," said Andrew Mais, Connecticut's Insurance Commissioner and current president of the National Association of Insurance Commissioners, in a press release. "The recent storms serve as a stark reminder that flood damage can happen anywhere, not just in designated flood zones. Homeowners, renters, and business owners must understand that standard insurance policies do not cover flood damage. The best way to safeguard your property is through the National Flood Insurance Program (NFIP) or private flood insurance." 

According to the Connecticut insurance regulator, 25% of all flood losses in the U.S. occur outside FEMA-designated flood zones. NFIP insurance covers up to $250,000 for structural damage to homes and up to $100,000 for personal belongings. Commercial business owners can also purchase coverage, with up to $500,000 available for non-residential buildings. The average NFIP premium ranges from $800 to $1,200 each year.

Flood insurance policies usually have a 30-day waiting period before taking effect. Several eastern U.S. states have seen a decline in properties being covered by flood insurance.