Homeowners affected by historic floods face gut-wrenching insurance issues: 'Doesn't really mean much at a time like this'

Communities across Wisconsin are facing repair bills after historic floods, but many homeowners have found their insurance policies exclude water damage, WISN reported. 

The disaster left residents scrambling for answers as they tried to rebuild without financial support from insurers.

What happened?

Many homeowners insurance policies do not cover flood damage, and residents in Glendale had to make costly repairs.

Nick Dunham, whose mortgage required him to purchase flood insurance, said that coverage was crucial in his recovery. 

"We're in a flood zone, so we were required to have flood insurance in the first place," he told the news outlet. "That's a huge help. That gets us a step in the right direction."

His neighbor, JP Edwards, said his policy did not cover the loss of his furnace or tools.

"You can have a fire, you can have a volcano, whatever, but sorry, no floods, so nothing," he said. "... All the insurance commercials, and they send you emails from time to time, where: 'We got your back. We're covering your dreams' — it doesn't really mean much at a time like this."

Why is this concerning?

Home insurance is meant to help people recover after disasters. Without it, families face enormous costs on their own.

More frequent storms are fueled by planet-warming pollution, which humans produce by burning oil, gas, and coal. This traps heat in the atmosphere, which disrupts weather patterns and makes floods, hurricanes, and wildfires more intense.

When the risks increase, insurers pass on the costs to homeowners or pull coverage entirely. When coverage is denied, costs fall directly on households, many of which cannot afford them. Without protection, entire neighborhoods risk financial collapse after storms.

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The Office of the Commissioner of Insurance told WISN it had received a surge of calls from policyholders frustrated with coverage gaps — but it's happening not just in Wisconsin. Last year, residents throughout the Upper Midwest experienced a similar problem after an increase in extreme weather events.

What's being done about it?

Consumer advocates say families should review coverage options and consider specialized flood insurance, especially in areas where severe weather is intensifying.

But the insurance industry doesn't seem to be budging from its position that raising rates is necessary because of the added risks of extreme weather.

On a broader scale, cutting the pollution that drives extreme weather can help reduce the long-term risks to homes. This means switching to clean energy and improving local flood protections.

Groups working on these challenges stress the importance of understanding critical issues that link human activity, corporate responsibility, and extreme weather.

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