The National Flood Insurance Program (NFIP) is a federally subsidized program authorized by Congress in 1968 to protect property owners who, up to that time, were unable to secure flood insurance through the private insurance industry. The program is administered by the Federal Insurance Administration (FIA), part of the Federal Emergency Management Agency (FEMA).

Flood coverage is available in those communities that have qualified for participation in the NFIP by agreeing to adopt and enforce flood plain management ordinances designed to reduce future flood losses. Over 19,000 communities participate in the program nationally, including 712 in Ohio (626 municipalities and unincorporated areas in 86 counties). There are 57 communities in Ohio (55 municipalities and unincorporated areas in two counties, Highland and Hardin) with flood hazard areas not participating in the NFIP.

The NFIP had 4.1 million policyholders in the US and its territories, totaling nearly $483 billion in coverage as of September 30, 1999. At year-end 1999, Ohio had 35,279 policies in force, for about $2.7 billion of coverage. Based on FIA estimates for Ohio, there are about 280,000 structures located in mapped flood plain areas, with a value of $11 billion. Only about 7% of these structures are protected by flood insurance. FEMA estimates that about 30% of flood plain structures nationally carry flood insurance.

The US average flood insurance policy purchased through May, 1999 was for $119,254 of coverage, with an average premium of $341. In 1998, the average was a $331 premium for $117,789 of coverage.

For fiscal year (FY) 1999 (Oct., 1998-Sept. 30, 1999), the NFIP closed on 33,058 losses for $703.6 million. 5,738 claims remain open at the close of publishing, most related to Hurricane Floyd. For FY 1998 (Oct., 1997-Sept. 30, 1998) the NFIP paid on 52,642 claims, with 409 remaining open at close of publishing. The total losses paid to date for FY 1998 are $680.6 million. NFIP paid losses for FY 1997 totaled 41,736 for $683 million.

Ohio's overall loss picture since 1978, through September 30, 1999, shows that some 13,550 loss payments have been made totaling nearly $91 million. Based on the number of flood insurance policies written, the average Ohio flood insurance policy in 1999 was $480 for $79,000 of coverage (compared to $469 for $75,000 of coverage in 1998). The number of flood insurance policies in force by Ohio county as of October 31, 1999 can be found below. Statewide figures for 1990-1999 can be found below.

NFIP coverage is available to all owners and occupants of insurable property (building and/or contents) in a participating NFIP community.

In 1997 the NFIP added a new coverage that reimburses flood policyholders for the additional or "consequential" costs of rebuilding a flood-damaged structure to comply with local flood plain management requirements. All new or renewed policies written on or after June 1, 1997 provide "increased cost of construction" (ICC). ICC pays up to $15,000 for the increased cost to rebuild or otherwise alter flood-damaged structures to conform with state or local flood plain management ordinances, thus breaking the cycle of repeated flooding. Effective for losses after May 1, 2000, these limits will increase to $20,000, with no increase in premiums. Restrictions apply, and to qualify the structure must have either sustained a loss of 50% or more from a single flood event or sustained two or more insured losses within a 10-year period, each of which caused 25% or more in losses, based on market value. ICC premium coverage ranges $4-$75 per policy.

Flood insurance is available to:

• Home owners for protection of their structure and contents, and renters for protection of contents
• Builders in the course of construction, condominium associations and condominium owners
• Condominium associations that can purchase a master policy to cover both the common areas and their members' individually owned units
• Residential condominium unit owners may purchase building and contents flood insurance to supplement the association's policy
• Owners of nonresidential condominium units may purchase contents coverage.

Homes can be insured up to $250,000; furnishings and contents coverage can be purchased up to $100,000. Commercial property can be insured up to $500,000 on the building and $500,000 on contents. All policies carry a deductible, usually $500 or $1,000, with the deductible applying separately to structure and contents coverages.

There is a 30-day waiting period before new or modified flood insurance policies go into effect. Exceptions include loan-related mandates, flood plain map-related revisions and certain renewal increases. Lenders are required to notify borrowers or lessees when a property is located in a special flood hazard area that makes flood insurance mandatory.

According to the FIA, there has been an increase in the purchase of flood insurance. In fact, the number of NFIP policies in force doubled between 1985-1998, from about 2 million to about 4.1 million. The number of flood insurance policies purchased by Ohioans has more than doubled in the past 10 years (see below for Ohio flood policy statistics).

The NFIP estimates that 90% of all natural disasters involve flooding and between 25-30% of flood insurance claims are for damage in low risk areas due to the increased severity of rainstorms.

Homeowners/renters insurance policies do not typically cover losses due to flooding. Flooded vehicles, however, are covered under the comprehensive portion of an auto insurance policy. Property does not have to be located in a flood plain to qualify for coverage. As long as the property is located within an approved NFIP community, it is eligible for flood insurance.

The cost of a flood policy varies depending on the location of the property. About one in four policies written are for properties not located in a flood plain. Townhouses and 1-4 unit residential buildings not located in "special flood hazard areas" by the NFIP are likely candidates for a preferred risk policy. These policies cost between $196-$221 a year for $75,000 in structural coverage and $18,000 for contents. Deductibles apply to each.

Flood insurance protects against damages caused only by surface flooding and has limited coverage in basements. It does not generally cover basement sewer backup or sump pump failure; however, there are certain loss conditions where such coverage may apply. Coverage for sewer backup is available as an endorsement to most homeowners policies. Some deluxe or all-peril homeowners insurance policies provide this as standard coverage.

Finished portions of a basement (walls, floors, ceilings and contents) are not covered under flood insurance. Other exclusions typically include gas and liquid storage tanks, walks and driveways, motor vehicles, landscaping, crops and livestock.

Unimproved structural parts such as the foundation, walls, stairways and utility connections are covered by flood insurance. Other items usually covered include sump pumps, water tanks, furnaces, water heaters, heat pumps, washers and dryers, food freezers, air conditioners and clean up, as part of the structural coverage.

Three types of flooding occur in Ohio: general river floods, urban and small stream, and flash floods. General river flooding occurs after heavy rainfalls. Since it usually occurs slowly, residents often have enough notice to prepare and evacuate if necessary. Urban and small stream flooding occurs when heavy rain falls in shorter periods of time. Storm sewers and small streams cannot handle the runoff, which results in flooded underpasses and basements, and backed-up sewers.

Flash flooding is always life-threatening because it occurs very quickly. It is more frequent in hilly or mountainous areas but can occur anywhere there is very heavy rain concentrated into a short period of time. 2-4 inches of rain in a couple of hours can trigger a flash flood, as can a break in a dam or levee.

The costliest flood event in 1999 will prove to be damages related to Hurricane Floyd. Insured flood losses associated with Floyd were incomplete at the close of publishing. At the end of November, 1999 losses were estimated at $254 million. Floyd made landfall near Cape Fear, NC on September 15 causing widespread flooding from Florida to Maine. Click here for a list of the top 15 US flood events.

Ohio was spared significant flood-related events in 1999. In 1998, flooding in 23 Ohio counties caused losses estimated at $184.3 million, including $82 million associated with disaster response. Homes, businesses and churches sustained at least $48 million in damages, with as many as 9,000 forced to evacuate. The flooding caused more than $5 million in agricultural losses. As of June, 1999, the NFIP received 424 related flood claims for $7.5 million. All claims are closed, with an average claim payment of $21,143. See the chart below for additional flood facts.

• The June, 1998 flood was one of Ohio's worst disasters on record. It joins the other great floods of March, 1997, and those in 1913 and 1937 as the state's costliest disasters.
• 12 deaths were associated with the flood.
• 23 counties were declared federal disaster areas due to a stalled storm over southeast Ohio starting on June 24. Perils included tornadoes, flooding, high winds and mudslides.
• Estimated losses are $184.3 million.
• More than 7,000 residences and businesses were affected.
• More than 100 roads were closed, including I-70, I-71 and I-77.
• 19 shelters were opened.
• Over 3,928 temporary housing applications were approved for $10.1 million.
• The Small Business Administration approved 864 loans for $16.4 million as of December 27, 1998.

Source: Columbus Dispatch (12/17/98)

• NFIP-Rich Slevin/Guy Matheson, 630-577-1407
• Ohio Dept. of Natural Resources, 614-265-6750
• Ohio Emergency Management Agency (EMA), 614-799-3695
• NFIP Agent Referral Program, 1-800-427-4661
• NFIP website: www.fema.gov/nfip
• Ohio EMA website: www.state.oh.us/odps/division/ema