Sorry, you need to enable JavaScript to visit this website.

ÌìÃÀ´«Ã½

Tropical Storm Isaac Will Likely Become A Hurricane: Hurricanes Produce Storm Surges, Tornadoes And Inland Flooding

SPONSORED BY
NEW YORK, August 26, 2012 —While it is difficult to project the exact track and long-term intensity of Tropical Storm Isaac, one thing is certain: hurricanes cause heavy flooding from storm surge and torrential rains, which can cause major damage, according to the Insurance Information Institute (I.I.I.)
Ìý
It may come as a surprise, but the top 10 most costly flood events in U.S. history are associated with hurricanes and tropical storms, with insured flood losses from Hurricane Katrina topping the list at $16 billion, the I.I.I. noted.

TOP TEN SIGNIFICANT FLOOD EVENTS, RANKED BY NATIONAL FLOOD INSURANCE PROGRAM PAYOUTS (1)

Rank Event Location Date Number of
paid losses		 Amount paid
($ millions)		 Average
paid loss
1 Hurricane Katrina AL, FL, GA, LA, MS, TN Aug. 2005 166,675 $16,128 $96,764
2 Hurricane Ike AL, LA, TX Sep. 2008 46,585 2,644 57,125
3 Hurricane Ivan AL, DE, FL, GA, LA, MD, MS, NJ, NY, NC, OH, PA, TN, VA, WV Sep. 2004 27,648 1,586 57,381
4 Tropical Storm Allison FL, LA, MS, NJ, PA, TX Jun. 2001 30,663 1,104 36,000
5 Hurricane Irene CT, DC, DE, MA, ME, MD, NC, NH, NJ, NY, PA, PR, RI, VA, VT Aug. 2011 36,360 928 25,511
6 Louisiana Flood LA May 1995 31,343 585 18,667
7 Hurricane Isabel DE, MD,ÌýNJ, NY, NC, PA, VA, WV Sep. 2003 19,857 493 24,806
8 Hurricane Floyd CT, DE, FL, GA, MA, ME, MD,ÌýNH,
NJ, NY, NC, PA, RI,ÌýSC, VA, VT		 Sep. 1999 20,438 462 22,618
9 Hurricane Rita AL, AR, FL, LA, MS, TN, TX Sep. 2005 9,494 470 49,534
10 Hurricane Opal AL, NC,ÌýPR, SC, TN Oct. 1995 10,343 406 39,208

(1) Includes events from 1978 to December 31, 2011. Defined by the National Flood Insurance Program as an event that produces at least 1,500 paid losses. Stated in dollars when occurred.

Source: U.S. Department of Homeland Security, Federal Emergency Management Agency.

Standard homeowners and renters insurance policies do not cover flood damage. However, flood coverage, is available in the form of a separate policy both from the , and from a few private insurers.

The NFIP provides coverage for up to $250,000 for the structure of the home and $100,000 for personal possessions. The NFIP policy provides replacement cost coverage for the structure of your home, but only actual cash value coverage for your possessions. Replacement cost coverage pays to rebuild your home as it was before the damage occurred. Actual cash value is replacement cost coverage minus depreciation so that the older your possessions are, the less you will get if they are damaged. There may also be limits on coverage for furniture and other belongings stored in your basement.
Ìý
There is a 30-day waiting period before the coverage takes effect, so it is important not to wait until the last minute to buy a flood insurance policy.
Ìý
Excess flood insurance is also available from some private insurers if you need additional insurance protection over and above the basic policy or if your community does not participate in the NFIP. Depending on the amount of coverage purchased, an excess flood insurance policy will cover damage over and above the limits of the federal program on the same basis as the federal program—replacement cost for the structure and actual cash value for the contents.
Ìý
Excess flood insurance is available in all parts of the country wherever the federal program is available—in high risk flood zones along the coast and close to major rivers, as well as in areas of lower risk. It can be purchased from specialized companies through independent insurance agents or from regular homeowners insurance companies that have arrangements with a specialized insurer to provide flood coverage to their policyholders.

Ìý
THE I.I.I. IS A NONPROFIT, COMMUNICATIONS ORGANIZATION SUPPORTED BY THE INSURANCE INDUSTRY.
Ìý
Insurance Information Institute, 110 William Street, New York, NY 10038; (212) 346-5500;

Back to top