Vast Majority of Midwest Flood Damage Uninsured
A.M. Best reports that the “vast majority” of the damages to property from the ongoing flooding in Nebraska and other states along the Missouri River will be uninsured. These damages are expected to top $3 billion. According to analysts, take up rates for National Flood Insurance Program coverage are less than one percent in the states hardest hit by these floods, including Missouri, Iowa, Kansas, and South Dakota. In Nebraska, which has a population of nearly 2 million, there are fewer than 10,000 policies in force.
The rating agency believes most damage costs will be absorbed by residents and business owners, with state and local authorities likely bearing a portion of the cost to rebuild communities. Flood losses to business and vehicles, including business interruption claims, will generate most of the insurable losses from the storm, while claims for onshore commercial and industrial properties and their contents, along with insured commercial automobiles, also could be substantial, A.M. Best said.