WAUKESHA COUNTY — As families and business owners across southeastern Wisconsin clean up after the historic flooding on Aug. 10, many are learning firsthand that their homeowners, business and renters policies don’t cover water damage unless they carry separate flood insurance.
Small businesses and homes under water
Kayla Ahles, a Waukesha resident and longtime small business owner, said the storms affected many areas in her and her family’s lives.
“We were affected in two of our businesses, in two of our homes,” Ahles said.
Ahles operates Pretty Paws Pet Spa, a pet grooming salon in West Allis, located in the basement of a veterinary clinic, where sewer backup sent six to eight inches of contaminated water into the basement unit. All of their electrical grooming equipment was destroyed. The insurance company covering the salon has denied the claim that was submitted by Ahles.
“We had electrical tables, electric tubs, electric you name it, all of that has to be gotten rid of because it was sewer,” said Ahles. “We wanted to rebuild, but the landlord only put $1,000 toward rehabbing the space. So that was the biggest hit. I’ve been there for 11 years but owned the business for 15, so thankfully, we were already in the process of expanding, and we had our location in New Berlin.”
Another business that Ahles owns is a frame shop in Brookfield. Water leaked through the roof, but a claim was not filed because the landlord chose to cover the mild damages. Paper products were lost, but nothing was worth pursuing a claim.
Ahles’ Waukesha home also flooded after a faulty concrete slab allowed water to push through a window. She submitted a claim with a separate insurance company, and that claim was denied as well.
Her husband’s home in Wauwatosa was also affected when it took on water after the power outage disabled the sump pump; he goes through a separate insurance provider than Ahles does, and the agency has not yet gotten back to him about his submitted claim.
Like many residents, Ahles assumed her homeowners insurance would protect her.
“Our provider told us we have no water coverage whatsoever,” she said.
For Ahles, the lesson has been painful.
“We talked to other brokers, and they said you’d have to write a special policy for sewer or flood,” she said. “Nobody teaches you that when you’re buying your first home.”
Renters caught in the same storm
For Carly Magnus, a resident of New Berlin, the storm flooded her apartment building’s underground garage and storage units, with water measuring nearly eight feet deep. A requested claim was filed, but denied by the insurance company she has been with since being a resident at her complex.
“My apartment unit wasn’t affected, but my storage area and my car in underground parking were. We lost a lot of things, old baby clothes, Christmas decor, and other items. They told me not to touch anything, but nobody ever came out to see,” said Magnus. “We just had to throw it all away. I feel like it’s very unfair. Nobody tells you your renters insurance won’t cover flooding. You think you’re protected, and then you’re not.”
Advice from a state official
Sarah Smith, director of public affairs at the Wisconsin Office of the Commissioner of Insurance, said many residents are only now realizing that standard homeowners and renters insurance policies don’t cover flood damage.
“It’s really important for people to understand that homeowners insurance policies do not cover flood damage, and the vast majority of people in Wisconsin don’t have a separate flood insurance policy,” Smith said.
She noted that while Wisconsin isn’t hurricane-prone, its valleys, rivers, and lakes create significant flood risks.
“Flooding is actually one of our No. 1 weather-related risks in Wisconsin,” Smith said. “Going without flood insurance is a financial risk to individuals as well.”
Smith explained that renters can purchase contents- only flood insurance policies to protect belongings since a landlord’s building coverage doesn’t extend to tenants’ property. She also highlighted auto insurance.
“If they have a comprehensive auto insurance policy, flood damage would be covered. Collision only would not,” she said.
She urged residents to file claims with their insurers anyway, even if they expect denial, because FEMA often requires proof of denial before providing assistance.
“FEMA has been requiring proof of a denied homeowners insurance claim to give them FEMA assistance,” Smith said.
Flood insurance policies purchased through the National Flood Insurance Program also carry a 30-day waiting period before coverage begins, Smith added, underscoring the need for residents to plan ahead.
For more information on finding a flood coverage provider or learning about flooding in your area, visit www.floodsmart.gov.
Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.