On the tail of Wednesday's flood, questions over insurance arise

DEARBORN HEIGHTS, Mich. (FOX 2) - It's complicated, it's costly, yet vital for homeowners inundated with storm water. 

Flood insurance: Do you have it?

"No," said Dan Murray.

A common answer for many hit by the torrential rains of May 1.

Why not?

"Because I don't have no mortgage on the house and it's just too expensive," said Murray.

Another common answer. Applying for flood insurance could provide relief for many frustrated by water damage in their homes. But how much would it have helped? Officials with State Farm said quite a bit.

"Yeah, we're getting a lot of calls for sure," said David Arce, an insurance agent with State Farm.

There's two kind of policies offered for homeowners looking for financial protection against storm water. One comes from the Federal Emergency Management Agency (FEMA) and another comes as an endorsement on a homeowner policy.

The FEMA insurance is mandatory for anyone with a mortgage. But you have to live in a FEMA flood zone. There's also a limit of $250,000 coverage limit. Tack on the limit is the price of coverage, which isn't cheap. A $100,000 house would cost $1,000 a year to protect it.

As for the "endorsement on homeowner policy" option, it's not as robust. In fact, it doesn't even cover flood damage if the water comes through one's front door. But if that water comes through a sewer or sump pump, it's covered. While optional and usually limited to 10 percent of the value of a home, it's much cheaper - costing about $100 on a $100,000 home.

No matter the option, insurance officials recommend have some kind of plan in place. The other bit of advice offered is to talk to one's agent about what's available.