The Insurance Services Office (ISO) has estimated that 27,000 claims for damage from tornadoes and floods that have struck Iowa since May 25 caused $235 million in losses.  Those estimates do not include coverage for flood damage, which is available mostly from the federal National Flood Insurance Program.  David Maurstad, an assistant administrator of the Federal Emergency Management Agency, which oversees the federal flood insurance program, said that few Iowans have flood insurance; only 10,649 policies were in force in the state as of September 2007. Maurstad said it was troubling that so few people were insured in the affected areas.  He added the government, banks and real estate and insurance agents have an opportunity to make homebuyers aware of flood insurance, which can be purchased by anyone who lives in a community that participates in the program.

A recent survey revealed that only 17 percent of Americans have a flood insurance policy. The proportion of Americans with a flood insurance policy is relatively unchanged from a year ago, when 14 percent said they have flood insurance. In the North Central states, where much of the flooding is occurring, 17 percent of people said they have flood insurance, up from 9 percent in 2007.

Many Iowans Lack Insurance to Pay For Flood Damage (Des Moines Register 6/25/08)

July 2, 2008