Flood Insurance Information for Atlanta Homeowners

Before buying a house along Sope Creek in east Cobb two years ago, Nicole Lipson and her husband thought about floods. They knew the basement level and the yard of their 1980s stucco traditional was in a low-lying area – so low, in fact, that getting flood insurance was a condition of their mortgage.

That insurance came in handy last month when the metro area was deluged by rains that dumped six feet of water in Lipson’s yard and another three feet in her basement.

“We are the closest and lowest house to the creek in our subdivision, and even the people who lived here before said the creek came into their yard a few times,” said Lipson. “So we had to get insurance; it was required. I think, since Katrina, more mortgage companies and banks are more cautious and insisting people have it.”

But as Lipson found out, flood insurance does not cover all the problems created when water invades a house and property. After meeting a deductible, her policy helped with the cost of replacing the outside air conditioning units; a basement freezer and its contents; and the furnace. But it isn’t helping to clear the silt, bottles, cans, bags and other debris from the creek that washed into the yard and wrecked the landscaping.

“It also did not cover personal items such as tools,” she said. “You really just have to read and know exactly what’s in your policy.”

According to statistics on the Federal government’s flood site, www.floodsmart.gov, the average flood claim in the last decade was more than $33,000. The site explains how to determine if your home is at risk for flooding and how much a policy might cover. It also provides information on how to obtain a flood policy.

Prices for this specific coverage vary by the risk level and the area where the home is located. In Lipson’s case, last year’s flood insurance policy cost about $800. This year, she expects that cost to jump to $900 or $1,000. And that’s in addition to the cost of her regular homeowner’s insurance.

It took Lipson about three weeks to receive a check for the flood damages. She was surprised to learn that it was made out to the mortgage company as well. “When you have a mortgage, the check is made out to you and the mortgage holder, so we had to get someone from the mortgage company to sign it, which took awhile.”

Though Lipson is grateful for the assistance her policy provided, she was surprised to learn that it didn’t cover everything.

“I think the best thing someone can do is be an informed consumer and know what flood insurance provides,” she said. “It’s good, but it’s not necessarily what you think.”