Flood insurance claims rising

But only 1 percent of Indiana households have flood coverage, state agency says

The state’s two largest homeowner insurance companies have begun fielding thousands of claims for property damage from the weekend storms.

Indiana Farm Bureau Insurance, the state’s second-largest underwriter of home insurance, saw claims nearly double during the day Monday, jumping from 507 to 931, the company said.

“We will absolutely ramp up to take care of the situation,” said Rick Nelson, a spokesman for Farm Bureau, which closed its Martinsville office because of flooding.

State Farm Insurance, the biggest home insurer in Indiana, with policies covering one of every four houses, had received 2,300 homeowner claims from Friday’s and Saturday’s storms by midday Monday.

“We expect the numbers to rise throughout the week,” said State Farm spokeswoman Missy Lundberg. State Farm has a mobile claims office in Edinburgh and was setting up a second unit Monday.

Even as the number of claims mounts, many homeowners with the most severe damage from flooding may not be covered for flooding. Only 1 percent, or 28,000, of the state’s 2.3 million households were covered by flood insurance, according to the Indiana Department of Insurance.

A separate insurance policy is required for flood insurance because the typical homeowner insurance policy doesn’t cover damage from flooding.

“I didn’t know that,” said George Lambert, 82, who was cleaning up the one-story home he and his wife Betty own on Columbus’ northside. His homeowner insurance company told him his policy doesn’t cover damage from a flood.

“I argued with ‘em a little bit,” Lambert said. “I’m telling them it’s not flood damage. It’s the storm that done it.”

Flooding sent 4 feet of water from nearby Haw Creek surging through every room, destroying furniture, appliances, clothes and other possessions.

Federal disaster loans carrying a low interest rate are available for those without flood coverage.

The federal government through the Federal Emergency Management Agency is the sole insurer for flooding in the nation.

Greg Caveny, who with his wife is opening a salon in downtown Franklin, is one of the financially fortunate victims of flooding that wracked the Johnson County city. His bankers required him to buy a flood policy.

“I’m lucky,” he said of his flood insurance. “I didn’t think I needed it.” Caveny and his wife bought their building two months ago and had just tiled part of it when the floods hit. The water damaged much of the building.