Missouri insurance regulator urges flood risk awareness
Missouri's top insurance regulator, Angela Nelson, is urging homeowners to understand their flood risk and insurance policies after a rare flash flood emergency last Friday, July 10, brought torrential rainfall and widespread flooding to parts of south-central Missouri. The emergency prompted significant rescue efforts in affected areas.
Missouri's geography, with its numerous rivers, makes the state particularly susceptible to flooding throughout the year. But homeowner's insurance policies typically do not cover flood damage, requiring residents to purchase separate coverage. For the majority of individuals with flood insurance, this coverage is obtained through the National Flood Insurance Program, which is part of FEMA.
Nelson, director of the Missouri Department of Commerce and Insurance, emphasized the critical need for preparedness. “In today's world, we need to get people to remember — if it rains where you live, it can flood,” Nelson said.
She also addressed a common misconception regarding coverage. “When it comes to flood, there is a common misperception that homeowner's insurance covers flood, and it does not," She warns. "You must purchase separate coverage for that. For the vast majority of individuals who have flood insurance, they have purchased that coverage through the National Flood Insurance Program, which is a part of FEMA.”
Nelson also highlighted Missouri's natural flood vulnerability. “Missouri is one of those states — our logo has a river running through it. Well, there's a reason for that. We are a state that is prone to flooding. We don't have the catastrophic hurricane systems that make their way to Missouri, but we are a state that experiences a lot of rain throughout any time of year.”
Last Friday, July 10, the National Weather Service issued a rare flash flood emergency for parts of Iron and Reynolds counties, advising residents to move to higher ground immediately. Thunderstorms unleashed torrential rainfall across south-central Missouri, leading to the emergency.
The storms produced 12 inches or more of rain in just a matter of hours across parts of Crawford, Iron, Madison, Reynolds, and Wayne counties. The National Weather Service office in St. Louis reported this extreme rainfall as a one-in-1,000-year event in some locations.
The Missouri National Guard used eight UH-60 Black Hawk helicopters to evacuate over 200 children and staff stranded by floodwaters at Camp Taum Sauk in Lesterville. Missouri Task Force 1 participated in more than 100 rescues.
Rising costs for homeowner's insurance, whether for flood or other coverage, continue to climb. Nelson explained a key factor driving these increases. “The biggest driver of what it costs for your homeowner's insurance is what it costs to rebuild or replace your home if it's damaged. As we have seen housing prices increase over the last decade, those are really having a very significant impact on the homeowners' rates that we pay.”
Nelson advised Missourians to proactively assess their personal risk. “You really need to understand what your exposure is to flood risk and then purchase insurance coverage if you feel that's necessary.” Her department offers free guidance for Missourians with questions about their coverage.
