WGN-TV Show Notes — September 30, 2003

ANCHOR: THE FLOOD WATERS FROM HURRICANE ISABEL HAVEN’T ENTIRELY RECEDED, CAUSING MORE PANIC FOR WATER-LOGGED RESIDENTS.

ANCHOR: AND IF THAT WEREN’T BAD ENOUGH, HOMEOWNERS THERE WILL HAVE TO DIG EVEN DEEPER INTO THEIR OWN POCKETS TO DRY OUT AND REPAIR THE DAMAGE. WGN’S MONEY-SAVING EXPERT ILYCE GLINK IS HERE WITH THE SOGGY DETAILS.

ILYCE: GOOD MORNING. IN THE WAKE OF HURRICANE ISABEL, THE LIGHTS FOR MANY AMERICANS ON THE EASTERN SEABOARD ARE STILL OUT. BUT WHAT HASN’T EVEN DAWNED ON MOST AMERICANS WHO LIVE IN FLOOD ZONES IS THAT OVER THE PAST FEW YEARS INSURERS HAVE BEEN STEALTHILY CHANGING INSURANCE POLICIES AS THEY RELATE TO HURRICANE AND OTHER FLOOD DAMAGE.

ILYCE: MAJOR THUNDERSTORMS, TORNADOS, FLOODS AND HURRICANES CAN CAUSE SERIOUS DAMAGE TO HOMES. LAST WEEK, THE CONSUMER FEDERATION OF AMERICAN PREDICTED THAT HURRICANE ISABEL WILL RESULT IN A MINIMUM OF 20,000 INSURANCE CLAIMS JUST FOR WIND DAMAGE, AND COULD WIND UP COSTING INSURERS HALF A BILLION DOLLARS. BUT THE BILL FOR WATER DAMAGE WILL BE SEVERAL TIMES THAT. UNFORTUNATELY FOR HOMEOWNERS, PAYOUTS MAY BE LESS BECAUSE INSURERS HAVE INTRODUCED PERCENTAGE HURRICANE DEDUCTIBLES INTO MANY NEW HOMEOWNER’S POLICIES – THAT’S IF YOU WERE SMART ENOUGH TO BUY FLOOD INSURANCE.

FEMA – FLOODING COSTS ” $6 BILLION PER YEAR ” $3.3 BILLION IN 1980S ” FEMA REMAPPING FLOOD ZONES

ILYCE: ACCORDING TO FEMA, THE FEDERAL EMERGENCY MANAGEMENT ADMINISTRATION, FLOODING IS THE MOST FREQUENT AND COSTLY HAZARD. IN THE 1990S, WATER DAMAGE REPAIR COST INSURERS NEARLY 6 BILLION DOLLARS, UP FROM AROUND 3.3 BILLION IN THE 1980S, ACCORDING TO THE NATIONAL WEATHER SERVICE. ACCURATELY PREDICTING FLOOD ZONES CAN SAVE CONSUMERS – AND INSURERS MILLIONS OF DOLLARS. THAT’S WHY FEMA IS ABOUT TO LAUNCH A NATIONWIDE EFFORT TO REMAP FLOOD ZONES.

ILYCE: MANY PARTS OF CHICAGO ARE LOCATED IN FLOOD ZONES. BEING PART OF A FLOOD ZONES GIVES HOMEOWNERS THE OPPORTUNITY TO BUY INTO THE FEMA-RUN NATIONAL FLOOD INSURANCE PROGRAM.

FEMA FLOOD INSURANCE ” 4.4 MILLION HOMEOWNERS ” $403 AVG. PREMIUM ” MORE IF IN FLOOD ZONE ” DAMAGE LIMIT: $250,000 ” INS. COSTS UP 7 – 8%/YEAR ” FLOODING NOT COVERED UNDER REG. POLICY

ILYCE: ABOUT 4.4 MILLION HOMEOWNERS CURRENTLY BUY THE FLOOD INSURANCE OFFERED BY FEMA. THE AVERAGE PREMIUM IS 403 DOLLARS, BUT YOU PAY MORE, POSSIBLY A LOT MORE, IF YOU’RE LOCATED IN A FLOOD ZONE. DAMAGE IS LIMITED TO $250,000, BUT YOU CAN BUY A SUPPLEMENTAL POLICY FOR MORE IF YOU WANT. THE FLOOD PREMIUM COMES ON TOP OF HOMEOWNERS INSURANCE COSTS, WHICH ARE RISING BETWEEN 7 TO 8 PERCENT PER YEAR, SO IT’S A HEFTY CHUNK. WHAT HAPPENS IF YOU DON’T BUY IT? FLOOD DAMAGE, UNLESS IT’S CAUSED BY A FAULTY SUMP PUMP, GENERALLY ISN’T COVERED UNDER YOUR REGULAR HOMEOWNERS POLICY – SO YOU COULD BE COMPLETELY OUT OF LUCK.

ILYCE: (VO – VIDEO OF 18-INCH RAINSTORM LAST YEAR IN THE WESTERN SUBURBS….) CHICAGOANS HAVE HAD THEIR SHARE OF FLOOD DAMAGE OVER THE PAST DECADE, WHICH IS WHY, IF YOU’VE EVER HAD WATER DAMAGE CAUSED BY A TORRENTIAL RAIN STORM, YOU SHOULD CONSIDER BUYING FLOOD INSURANCE.

FEMA FLOOD INS. ” NO: BASEMENTS, FURNITURE ” YES: HOT WATER HEATERS, ELECTRICAL, APPLIANCES

ILYCE: JUST REMEMBER, FEMA FLOOD INSURANCE DOESN’T COVER FINISHED BASEMENTS, OR FURNITURE, BUT IT DOES COVER MECHANICAL SYSTEMS LIKE HOT WATER HEATERS, YOUR ELECTRICAL SYSTEM, AND APPLIANCES.

FOR MORE INFORMATION CALL FEMA (800) 358-9616 WWW.FEMA.GOV

ILYCE: AND WE’LL PUT UP ALL THIS INFORMATION PLUS LINKS AT WGNTV.COM, AND AT THINKGLINK.COM.

RESOURCE FOR AMY MOWERY:

WWW.FEMA.GOV

FEMA’S MAP CENTER: 800-358-9626 FOR LOCAL INFORMATION: CALL YOUR LOCAL BUILDING DEPARTMENT

CITY OF CHICAGO DEPT. OF ZONING www.ci.chi.il.us/Zoning