Wisconsin Floods Reveal Homeowners and Renters Insurance Coverage Gaps
The recent historic flooding in southeastern Wisconsin has exposed a significant gap in coverage for many homeowners, renters, and small business owners. Despite assumptions, standard homeowners and renters insurance policies typically do not cover flood-related water damage unless accompanied by a separate flood insurance policy. This has led to numerous denied claims for flood damage in affected areas such as Waukesha, West Allis, New Berlin, and Brookfield.
Business owners like Kayla Ahles experienced substantial financial losses when sewer backup flooded her pet grooming salon's basement, destroying electrical equipment, and her insurance claim was denied. Similarly, her home and her husband's home in nearby Wauwatosa also sustained damage, with claims being denied or still pending. Renters in flooded areas faced similar challenges, with lost property in underground garages and storage units not covered by their renters insurance.
The Wisconsin Office of the Commissioner of Insurance highlighted that flooding remains one of the top weather-related risks in the state, emphasizing the importance of flood insurance, which is often overlooked by residents. Renters can obtain contents-only flood insurance to protect personal property, especially since landlords’ building policies do not cover tenant belongings. Additionally, comprehensive auto insurance policies typically cover flood damage to vehicles, unlike collision-only policies.
Residents are advised to file claims with their insurers regardless of expected denial, as documentation of denial is often required for FEMA disaster assistance. It is also crucial to note the 30-day waiting period for flood insurance policies purchased through the National Flood Insurance Program, underscoring the need for advance planning to mitigate flood-related financial risks.
For further information on flood insurance options and flood risk mitigation, residents can visit resources such as floodsmart.gov.