Homeowners distraught over insurance company's actions after major disaster: 'There's nothing we can do'

Homeowners are still trying to recover from historic floods in Wisconsin after their insurance companies left them high and dry — and the reason is more common than you might think. 

What's happening?

In August, thunderstorms and torrential downpours swept through southeastern Wisconsin, overloading sewers and drains and leaving roadways under multiple feet of water. 

In West Allis, Honey Creek overflowed into areas that the Federal Emergency Management Agency doesn't officially list as being part of a flood plain, according to Spectrum News 1. For homeowners like Ricky Grabow, who lived in a neighborhood near Honey Creek, this began a nightmare with no end in sight.  

Private insurers don't typically require flood insurance for homeowners who live outside FEMA-designated flood plains. Grabow said he never even discussed the possibility with his policy provider, American Family Insurance. Months later, his family is struggling to rebuild. 

"They walked in here, they were here for like three minutes and they said, 'There's nothing we can do,'" Grabow told Spectrum News. "There's no wind damage, there's no hail damage, and that's all you have covered."

Grabow's sister set up a GoFundMe to raise recovery funds for her brother and his family.

Why is this important?

Torrential downpours and other extreme weather events are becoming increasingly common and severe due to rising global temperatures, as a warmer atmosphere holds more moisture. 

In the aftermath, many homeowners realize they don't have the coverage they need, significantly setting back their rebuilding efforts — if they can afford to rebuild at all. Insurers are also pulling out of high-risk areas or raising premiums to cover rising costs from natural disasters, pricing people out of their homes and exacerbating an affordable housing crisis.  

What's being done about this?

Florida and California are among the states with last-resort insurance plans, but these policies are generally less comprehensive and more expensive than private options. Meanwhile, a recent report shed light on how private insurers may be feeding the very industry that is impacting their profits, as many continue to invest in fossil fuel companies. 

As for American Family Insurance, it declined to provide details about Grabow's denied claim. 

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The insurance company wrote in a statement to Spectrum News: "Regarding your questions about flood insurance, homeowners' insurance policies do not typically cover flood events. As policies can differ greatly, it's important to have regular conversations with your insurance agent to ensure you have the right amount of coverage and know whether flood insurance is right for you."

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