KANSAS CITY, Mo. — Insurance agents in states along the swollen Missouri River basin say federal officials are causing widespread confusion among property owners by pushing the sale of flood-insurance policies that might not cover damage from the river flooding that began this month.
The insurance companies say officials with the Federal Emergency Management Agency, which administers the national flood-insurance program, are urging private agents to sell the insurance even though the policies contain deadlines that appear to exclude the Missouri River flood damage. Federal officials say some damage might be covered under the highly complicated rules, but it won’t be clear until after the flooding is over.
“They won’t give you a clear answer,” said Larry Case, executive vice president of the Missouri Association of Insurance Agents.
The questions primarily affect property owners who waited until recently to decide on flood insurance because their property usually doesn’t flood. The flooding this year — the worst since 1993 — is threatening thousands of acres that normally remain dry.
“We’ve got to communicate with people that you can’t wait until the last minute to buy flood insurance,” said Brad Kieserman, FEMA’s chief counsel.
The confusion mostly stems from a 30-day waiting period in flood-insurance policies.
According to FEMA, the Missouri flood officially began June 1, so only policies bought by May 2 would have gone into effect and therefore would cover the resulting damage. On June 1, the Army Corps of Engineers increased water flow through the Garrison Dam in North Dakota to relieve pressure from rains and heavy snowmelt.
But the agency notes some damage might be covered if it is attributed to locally heavy rains or other conditions not affected by the waiting period. Property owners could buy the insurance, then wait for an adjuster to decide whether any damage is covered.
