Flood insurance not automatic (new law)

Many southeast Minnesotans were caught off guard when the flooding swamped parts of the area last August. Hundreds of homes were destroyed, seven counties were designated federal disaster areas, and property damage was estimated to be close to $67 million.

Many were also surprised when they learned they didn’t have flood insurance.

Gov. Tim Pawlenty signed a new law May 12 that requires insurance companies to annually notify customers that their policy does not include flood coverage.

The law is sponsored by Rep. Ken Tschumper (DFL-La Crescent) and Sen. Kevin Dahle (DFL-Northfield) It takes effective Aug. 1, 2008.

The law also requires the notice to inform policyholders that if they live in an area covered by the National Flood Insurance Program, they may be eligible for flood insurance.

“This is a common-sense solution that will eliminate some confusion surrounding flood insurance,” Tschumper said. “It will give Minnesotans the opportunity to prepare for floods before they happen.”

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