Context:

Flood insurance is critically underutilized in Wisconsin, despite the state experiencing significant flooding events, such as the recent thousand-year flood in the Milwaukee area. There are only 10,541 federal flood insurance policies in place across over 2.7 million households, a number reflecting one of the lowest per capita rates in the country. Many residents mistakenly believe they cannot obtain flood insurance if they do not live in a designated flood zone, though it is available to anyone. The state lacks comprehensive floodplain regulations in its building codes, exacerbating the issue of inadequate flood insurance coverage. Flood insurance is essential as it compensates for structural and personal property losses due to flooding, an event not typically covered by standard homeowners or renters insurance policies.

Dive Deeper:

• Wisconsin faces a severe shortage of flood insurance coverage, with only 10,541 federal policies across its 2.7 million households, despite the high risk of flooding highlighted by recent events in Milwaukee. The state has one of the lowest numbers of flood insurance policies per capita in the country, raising concerns about financial vulnerability in future flood events.

• Flood insurance, available through the National Flood Insurance Program (NFIP) or private insurers, covers losses from flooding, which are not typically covered by homeowners or renters insurance. NFIP policies are based on flood zone maps, while private insurers assess individual property risks, offering a potentially broader range of coverage options.

• Many Wisconsin residents erroneously believe they cannot obtain flood insurance because they do not live in a flood zone or because they rent their homes. However, flood insurance is available to anyone, and even a single inch of water can cause significant financial damage.

• The lack of floodplain regulations in Wisconsin's building codes contributes to the vulnerability of structures to flooding. Without proper guidelines for building elevation and location relative to floodplains, properties remain at high risk during flood events.

• Flood insurance policies have a standard 30-day waiting period before they become active, an important factor for residents to consider as flood season in Wisconsin typically begins in March and April. The state encourages residents to assess their flood risk and consider insurance coverage to mitigate potential future losses.