Flood damage not covered by home insurance, residents waiting on FEMA declaration

More than 13,000 people in southeastern Wisconsin suffered property damage caused by record-setting flash flooding over the weekend. 

Now, many of them are learning that the damage won’t be covered.

Thousands of people have filed claims after flood waters inundated homes or swamped vehicles. But flood damage to buildings is not covered by home or renters insurance unless they have purchased flood policies, said Sarah Smith, spokesperson with the Wisconsin Office of the Commissioner of Insurance. 

Those who who had vehicles stuck in floodwater may have more luck. Many people carry auto insurance, which does cover damage related to a flood. Those with collision-only coverage would likely not have coverage for flood damage, Smith said.

For the last week, Derek and Brandon Danowski have been cleaning up their mom’s house on South 81st Street in West Allis after water filled her basement and more than a foot of the first floor.

All of her kitchen appliances and furniture were ruined, the living room carpet had to be torn out and the bathroom and kitchen have been gutted.

The brothers estimate the home has at least $150,000 in damages. None of it will be covered by insurance.

“Everything is gone except for the clothes that were hanging in the closet,” Brandon Danowski said. “If it hails, they repair your roof, because it’s coming from the sky, and now, all of a sudden, the rain comes from the sky and then into your house, and they’re like, ‘Yeah, sorry, you don’t got flood insurance.’”

The Federal Emergency Management Agency created a separate flood insurance program several years ago for people who do not live in flood-prone areas. In Wisconsin, only about 10,000 people have policies, Smith said. 

Flood insurance is only required if the home or business is in a Special Flood Hazard Area (SFHA) and has a government-backed mortgage. 

But Smith encouraged people outside of floodplains to look into purchasing a policy.

“I mean, if you’re paying a $400 annual premium for flood insurance, and only one inch of water can cause $25,000 in damage, that’s a pretty good investment to consider,” Smith said. 

FEMA declaration could unlock money for individuals

This week, Gov. Tony Evers requested that President Donald Trump declare a disaster for the area so it can receive federal aid from FEMA. 

If Trump does issue a disaster declaration it will determine which types of federal assistance will be provided and whether individuals will receive assistance or if federal dollars will just be provided to governmental units, said Evers’ spokesperson Britt Cudaback. 

“If President Trump declines to issue a disaster declaration, then Wisconsin will not be eligible for federal public and individual assistance,” Cudaback said. 

Wisconsin Congressional leaders Sen. Tammy Baldwin and Rep. Gwen Moore, both Democrats, and Republican Rep. Bryan Steil have also asked the Trump administration and FEMA to unlock federal disaster aid. 

“Last weekend, unprecedented storms struck Milwaukee, Waukesha, Washington, and Ozaukee Counties in a record rainfall that left thousands of homes without power and caused significant damage,” the lawmakers wrote in a letter to Kristi Noem, Secretary of the Department of Homeland Security, which oversees FEMA. “We urge you to act without delay.” 

Brandon Danowski said he’s also going to make a plea to Trump.

“I gotta write a letter to my boy Donald Trump, see if he’ll give us some disaster relief,” Danowski said. “I’m waiting for him to walk down 81st Street.”

How to prepare over the next several days

If a presidential disaster declaration is made and FEMA assistance is made available to Wisconsinites impacted by flooding, homeowners may need to provide proof of a denied homeowners insurance claim before they are able to receive FEMA assistance, Smith said.

The Wisconsin Office of the Commissioner of Insurance recommends the following tips:

• Make a list of damaged items
• Take photographs of the damages before you begin to clean up.
• Keep damaged swatches (carpeting, upholstery, curtains, etc.) if possible
• Don’t throw out any damaged property without the claim adjuster’s agreement.
• Keep all receipts that document the cost of the repairs or the replacement of damaged items.