Few have flood insurance to help recover from devastating Midwest storms

abcnews.go.com:

Many Midwestern homeowners hit by bad flooding this week do not have flood insurance

SOUTH SIOUX CITY, Neb. — Rick Satterwhite’s house backs up to the Missouri River, but flood insurance hadn’t really seemed necessary – until this week, when he had to pump water out of his basement after a round of destructive storms.

It’s not the first time he’s had to dry out his basement from floodwater, but bad storms are getting more frequent, he said. Satterwhite watched with dread Monday as the river came within 2 feet (61 centimeters) of his backdoor in Dakota City, Nebraska, after torrential rain produced record-setting Midwestern floods, destroying hundreds of properties.

“I talked to our agent today," Satterwhite said. «We’re going to get flood insurance now.»

Satterwhite is hardly alone. As the Midwest begins to recover, many won’t have flood insurance, which must be purchased separately from homeowners insurance. Federal data shows that across the flooded states of Nebraska, South Dakota, Iowa and Minnesota, the government has only issued about 26,500 flood insurance policies combined.

Lack of insurance can burden homeowners with out-of-pocket repair costs and place more need on nonprofits and the government, said Emily Rogan, senior program officer at United Policyholders, an insurance consumers group.

In Iowa, for example, consulting firm Milliman estimates that in 22 of the counties covered by the governor's disaster proclamations, less than 1% of single-family homes have flood insurance from the government, which issues the vast majority of policies.

Many think flooding won't happen to them and is hardly worth the cost of another bill, according to Tom O'Meara, CEO of Independent Insurance Agents of Iowa. Iowa property