Wednesday, Aug. 20, 2003 | 9:30 a.m.
Nevada led the nation last year with a 10.56 percent increase in policies that were purchased by property owners under the National Flood Insurance Program but relatively few properties in the state are insured against floods.
There were only 13,979 policies in Nevada as of Dec. 31 that were covered under the program, which is overseen by the Federal Emergency Management Agency's Mitigation Division. That ranked Nevada 34th in the nation.
But relatively few Americans overall have flood insurance, as reflected by the fact that the program had only 4.4 million policies nationwide as of last year.
Basic homeowner policies typically do not include flood insurance, which is why most people do not have coverage against flood damage. But in 1968 Congress established the insurance program in response to the rising cost of taxpayer-funded disaster relief for flood victims, according to FEMA's website. Today, nearly 20,000 communities nationwide participate in the program.
Flood insurance is an option for most homeowners but is required for those who own property in designated special flood hazard areas. It so happens that 25 percent of all flood claims occur in low-to-moderate risk areas, according to FEMA.
The insurance is available through private insurance companies but the policies are backed by the federal government.
The insurance program, according to FEMA's website, "is self-supporting for the average historical loss year, which means that operating expenses and flood insurance claims are not paid by the taxpayer, but through premiums collected for flood insurance policies."
Here are some statistics to ponder about flood insurance policies in Nevada, courtesy of FEMA:
* Nevada's 13,979 policy holders paid $6.16 million in premiums last year to cover $2.33 billion worth of property. That worked out to an average premium of $441 premium per policy.
* There were 4,820 policies in Clark County, covering $887.5 million worth of property. That included 1,195 policies in Las Vegas covering $210.5 million in property, 781 policies in Henderson covering $126.3 million in property, and 164 policies in North Las Vegas covering $27.1 million in property.
* From January 1, 1978, through Dec. 31, 2002, Nevadans covered by the program received $24.9 million in payments for 1,124 claims. Of those amounts Clark County accounted for only 199 claims and $2.4 million in payments. The largest share of the state's payments, $10.7 million, has gone to property owners in the Northern Nevada city of Sparks.
Nevada insurance industry lobbyist Jim Wadhams said Tuesday that homeowners who make flood insurance claims usually get visits from insurance adjusters within days.
"They will respond quickly," Wadhams said of insurers. "If homeowners have flood insurance, it's a cut and dried deal."
Another option for homeowners whose homes are damaged or destroyed is to apply for assistance by contacting FEMA toll-free at 1-800-621-3362. Information about the National Flood Insurance Program may be obtained through the website www.fema.gov.
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