Is your home covered if flood strikes?

With last year's floods in eastern Iowa and this spring's high water in North Dakota, many Iowa Great Lakes residents are counting their blessings this year.

But what if the waters rise? Are you covered?

According to Jim Hitchcock, agent with Bank Midwest Insurance, most Lakes area residents may be surprised to learn that they do not have flood insurance coverage.

"Your standard property insurance does not cover floods," said Hitchcock.

Those who have obtained flood insurance in the Iowa Great Lakes area have probably paid a steep premium. Hitchcock illustrated with an example of a $250,000 home where the flood insurance premium costs between $6,000 and $7,000 annually.

However, he estimated that the premium would be a tenth of that fee if that resident's municipality had enrolled in the National Flood Insurance Program.

"If you participate in the program, you can get flood insurance at a somewhat reasonable premium," said Hitchcock.

According to the Iowa Department of Natural Resources, the average flood insurance premium in Iowa in areas participating in the program is $720.

"Dammed" if you don't?

Bill Cappuccio of the Iowa DNR says that Lake Park and Terril are the only municipalities in Dickinson County currently participating in the National Flood Insurance Program. Municipalities must enroll to participate.

"When a community participates in the National Flood Insurance Program, it provides the availability of the flood insurance; VA (U.S. Department of Veterans Affairs), SBA (Small Business Administration), FHA (Federal Housing Administration) and similar federal loan programs; availability of special grant programs and ability to receive disaster assistance," said Cappuccio. "If a community is not participating, you're limited in the types of disaster assistance that you're eligible for."

Cappuccio also said that many national lending institutions require flood insurance to issue loans.

"Whenever Federal money is invested in the special flood hazard area, the recipient must purchase flood insurance for the amount of that investment," said Cappuccio. "This applies to Federal government loan programs, loans from federally insured lending institutions, grants and other forms of disaster assistance. So, when a community does not participate in the National Flood Insurance Program, buildings in flood hazard area are not eligible for any of those Federal loan programs."

"Dammed" if you do?

While flood insurance provides benefits, the program's downfalls often outweigh its gains.

"To participate in the federal program, you've got to jump through certain hoops, and it's kind of a pain," said Hitchcock. "Especially if there wasn't any flooding before [1993] and there hasn't been any flooding since."

"It's a mess," said Arnolds Park City Administrator Ron Walker. "There are a lot of side effects with this, too."

For instance, many question the validity of the floodplain maps created for the Lakes area. Cappuccio said that many property owners were filing letters of map amendment to remove properties from the floodplain map.

"If someone were required by their lender to purchase flood insurance, they would have to prove that they are not in the flood plain [to avoid getting flood insurance]," said Cappuccio.

Cappuccio said that when many Dickinson County municipalities dropped out of the program, it may have been because of this burden. Owners of many properties mapped in the floodplain needed to prove they were indeed not at risk.

"The way it was explained to me at the time, there was an awful lot of letters of map amendment in unincorporated Dickinson County," said Cappuccio. "Somewhere along the line, people decided this was a burden from participating in the National Flood Insurance Program."

Walker said the lower interest rates have brought the issue back to the city's attention recently. Even though Arnolds Park does not participate in the National Flood Insurance Program, floodplain maps of the area are being obtained by lenders.

"We've got homeowners that are refinancing, and if the flood maps touch on their property, these [lending] institutions are requiring flood insurance," said Walker. "But they can't get [affordable] federal flood insurance because we're not a participating entity. They they have to either get a surveyor to document that they are above the elevation on the flood map or get flood insurance [at an exaggerated premium]."

Hitchcock says the survey is often worth the trouble.

"I've had luck going to a civil land engineer to do a survey," said Hitchcock. "A survey may cost you $1,000, but it's only a one-time charge and you're done and it's over."

A glimmer of hope

For those whose homes do lie in a floodplain danger zone, there is hope. The future may bring new floodplain maps and potential relief in insurance premiums. Cappuccio says the State of Iowa is currently working on a project that may assist.

"The State of Iowa is in the process of collecting two-foot interval topographic mapping for the entire state," said Cappuccio. "Once that information is available, it might prove useful to the county for revising its flood maps."

Cappuccio also said new maps could be created by a consultant.

"One way [to get new maps] would be for the community to hire a consultant to develop revised flood information and submit it to FEMA for review," he said.

With or without new maps, Dickinson County communities may also choose to enroll (or re-enroll) in the National Flood Insurance Program at by adopting a floodplain management ordinance.

"For a community to enroll in the NFIP, it must adopt - and enforce - a floodplain management ordinance and a resolution," said Cappuccio.

However, another muddy slope emerges due to rapid lakeshore development in the area.

"If the community has dropped out of been suspended from the program in the past (as Dickinson County has), it must provide certification that no development has occurred within its mapped special flood hazard area in the time since it left the program," said Cappuccio.

Some Lakes area officials are taking action to improve the situation.

Walker said the City of Arnold Park is going to make an attempt to correct the floodplain maps, and Dickinson County Supervisor Mardi Allen says she would like to see the supervisors address the issue after the Lower Gar Outlet controversy is resolved.