Staff Writer
As the flood waters receded yesterday, many area residents began calling their insurance companies, and some were not getting good news.
Many of those who suffered flood damage do not have flood insurance and may face a grim reckoning.
It was too early to tell yesterday afternoon how many homes and businesses were affected by the flood, said Mary Colvin, a Federal Emergency Management Agency official.
But New Jersey officials estimated only one in four residents who live in the FEMA-defined flood hazard area in Mercer, Hunterdon, Warren and Sussex counties have flood insurance, Colvin said. In any given year, buildings in this area have a 1 percent chance of being flooded.
In Mercer, there were 394 flood policies issued to property owners in Trenton and 353 policies in Ewing. In Hunterdon, there were 170 flood policies in Lambertville, 74 in Frenchtown and 19 in Delaware Township. Figures for other municipalities, including Hopewell Township, were unavailable.
Statewide, there were 183,474 flood insurance policies in 2003, with coverage totaling $29.9 million.
Many flood policyholders affected by the weekend inundation had not yet called their insurance companies by yesterday afternoon. "We're waiting for the calls," said insurance agent Peter M. Bonanni.
Of those who had called, some received bad news. New Jersey Manufacturers Insurance Group had gotten 57 calls from homeowners and only 18 had flood insurance, spokesman Pat Breslin said. The company also received 17 calls about automobiles, he said.
"The really fortunate thing here was the advanced warning," which allowed many residents to drive away from the flood zone, Breslin said.
Unfortunately, while standard homeowners insurance can provide coverage from hurricane wind damage, Hurricane Ivan brought only flood damage.
Unlike with other insurance claims, the claims adjusters who assess flood damages are not insurance company employees. Instead, the adjusters are hired independently by FEMA.
Since 1968, the federal government has provided flood insurance through insurance companies. Anyone who lives in a town that participates in the federal program - including all of the towns affected by the Delaware flooding - can buy the insurance.
"It doesn't matter if your property has been flooded three times," said Rachael Moore, spokeswoman for the Insurance Council of New Jersey.
However, there is a 30-day wait for the coverage to be effective, so residents cannot buy insurance now for the damage from this flood.
There is a maximum of $250,000 of building coverage and $100,000 maximum in coverage for contents. Businesses can cover as much as $500,000 in building damages and $500,000 in damage to contents.
The cost of the insurance varies based on the location of the building and the amount of its value covered, Moore said. While the average annual flood policy cost in New Jersey in 2003 was $555.59, some flood policyholders can pay several times that amount, according to insurance agents.
Many policy holders only pay for the minimum coverage required by their mortgage companies, Bonanni said. Also, most policyholders choose not to pay for coverage for the contents of their homes, he said.
Meanwhile, residents are paying for the flood's aftermath.
Patrick Quaye of Newell Avenue, Trenton, said he had "completely redone" his home just two months ago and feared he would have to do it all over again. Fortunately for him, he has flood insurance. Newell said his agent was well aware of the situation even before he called.
"They said, `I saw you on the TV,' " he said. Quaye fled the house with his camcorder and diapers for his infant daughter, along with his wife Jacqueline and four other children.
"Insurance should cover it, but how long with it take? That's the problem," he said.
Staff writer Albert Raboteau contributed to this report.
© 2004 The Times.
Trenton Times