Updated FEMA flood maps inundate many homeowners with unexpected insurance costs

My sister lives in Vermont, not a state historically known for flooding. In fact, since 1978, few states have received less money from the federal government for flood-related damage, according to statistics from the National Flood Insurance Program (NFIP).

But while buying a home recently, she was surprised to learn that properties that had been considered outside of a 100-year floodplain—and, as such, didn't require their owners to buy flood insurance, as mandated by the NFIP—now are deemed vulnerable to flooding. The reason for the change? The Federal Emergency Management Agency has issued new flood-hazard maps for the Green Mountain state.

Many homeowners in New York, New Jersey, and Connecticut are facing a similar change in the flood status of their properties, according to a recent report in The New York Times on FEMA's five-year, $1 billion effort to draw new flood-hazard maps and identify properties vulnerable to a 100-year flood. That century benchmark indicates there's a 1 percent chance of a flood occurring every year, not that a flood will occur once every 100 years and is the standard used to determine whether a house or other structure must be covered by flood insurance.

As reported in the Times' article, 4,300 properties in New Jersey that had been outside of a 100-year floodplain have been deemed flood prone, requiring owners to buy hundreds of dollars a year in flood insurance. Some homeowners are benefiting from the new maps, since homes that had been in a 100-year floodplain are no longer according to the new maps.

Some critics suggest that the federal government called for the remapping to refill FEMA's payout coffers after 2005's Hurricane Katrina. But FEMA officials insist the initiative was the result of a 1994 order from Congress to update its decades-old flood maps to reflect increased flood risk caused by development and natural changes to terrain.

To find out whether your home or one you're considering buying is affected by the new flood-hazard maps, visit FEMA's Map Service Center. Also read our report on flood insurance and watch the video (above) to be sure you buy the right type and amount of coverage.—Daniel DiClerico | e-mail | Twitter | Forums | Facebook

Essential information: Use our Storm & Emergency Guide for advice on planning for and coping with weather emergencies.

Hurricane Bill and the Midwest tornadoes: Short- and long-term planning

Hurricane Bill is strengthening before a possible landfall on the Canadian Maritime coast, while Midwesterners are weathering severe thunderstorms in the wake of Wednesday’s tornadoes that struck parts of Minnesota and Nebraska.

These recent posts can help you cope with natural disasters of all kinds:

• Our Storm & Emergency Guide includes articles, downloads, and videos on the products and procedures that help you assess your risk and plan proactively.

• The National Oceanic and Atmospheric Administration recently issued an updated forecast for a below-normal Atlantic hurricane season but noted a past history of severe storms late in the season.

• Many insurers have reduced coverage and increased deductibles for perils like wind storms and hurricanes, making it even more important for you to make wise decisions about additional flood insurance. Watch the video above for more on flood insurance—Gian Trotta | e-mail | Twitter | Forums | Facebook

One hail of a time to test solar water heaters

The Consumer Reports headquarters in Yonkers, New York, got pounded last night by a tornadolike thunderstorm that dropped several inches of hail on the area and left thousands of homes in Yonkers and surrounding communities without power. (The photo, taken by an art director here, shows one of our parking lots several hours after the storm had passed. The damage to our facility was minimal.)

A Consumer Reports project leader who lives two blocks from our offices was seriously concerned about the five different solar water heaters on the roof of our building that he's testing for an October 2009 report. "During the storm, it sounded like people were throwing rocks at my windows—lots of rocks," says Dave Trezza. "I couldn't hear the TV even after we closed the windows at home."

The solar water heaters survived unscathed except for the heat exchanger on one unit. Everything on your roof, including the roof itself, is susceptible to storm damage, although the high-impact tempered glass used in the water heaters' collectors should be able to withstand ¾-inch hail at 60 mph, an industry standard.

Dave and his team will continue their testing right through summer and into next winter. We'll have preliminary results of solar water heaters in the October issue and will provide you with testing updates in the months that follow. With any luck, we'll avoid other major storms.—Ed Perratore | e-mail | Twitter | Forums | Facebook

Essential information: Defend your home against natural disasters and visit our Storm & Emergency Guide. Also read this  post on our Money blog for details on homeowners insurance and storm damage and find out how common solar water heaters are in Israel.

Q&A: Got any pointers for buying homeowners insurance?

We're about to buy our first home and need homeowners insurance. Any suggestions for how to find a reputable company?

Get recommendations from friends, says Jeanne Salvatore, senior vice president of public affairs for the Insurance Information Institute. After you have the names of a few companies, check the financial-stability rating of each with Standard & Poor's. And use the tool from the National Association of Insurance Commissioners, which lets you search for licensing information and complaints. Finally, compare both the price and coverage the different insurers offer you.

If you have automobile insurance, be sure to contact that company. If you add homeowners insurance to your coverage, the insurer might offer a discount—we've seen discounts of up to 15 percent if you buy more than one policy from the same company.

Essential information: Read "12 Ways to Lower Your Homeowners Insurance Costs," from the Federal Citizen Information Center of the U.S. General Services Administration.

This Q&A is adapted from the April 2009 issue of the Consumer Reports Money Adviser.

By the Numbers: Skunk-odor cleanup bill reaches $500,000

$500,000

Cost of the of the skunk-odor cleanup at a house in Highland Park, Illinois.

Some might smell an April Fools’ joke here, but this story has definitely been no laughing matter to the affected homeowner. Two years ago, a skunk took up residence in a $940,000, five-bedroom home under construction in the Chicago suburb of Highland Park, Illinois. According to this Chicago Tribune report, it took days to corner and remove the skunk, whose stench had thoroughly permeated the home.

Efforts to remediate the problem included taking the walls down to the studs and digging up a large section of a concrete porch. The insurance company paid for the work, but as the odor problem persisted and the cost grew to $500,000, the insurer insisted on cheaper options. The homeowner and insurer have since filed lawsuits against each other. Although the house is still not completed, the owner and her son are moving in this week.

Experts stress that you should try to remove an intruding skunk as soon as possible. As for odor removal, “One remedy that our members have found works on a pretty regular basis consists of one quart of 3 percent hydrogen peroxide, 1/4 cup of baking soda, and one teaspoon of liquid soap,” says Pat Harman, director of communications for the Restoration Industry Association, a nationwide association of cleaning specialists.

“Because hydrogen has a tendency to bleach textiles, we wouldn’t advise spraying this solution on them, but if you do put them on a hard surface nearby, the solution will space and have some effect by neutralizing the sulfur in the skunk odor,” Harman added.

Consumer Reports’ How to Clean Practically Anything notes that you can try this solution to remove skunk odor from pets. Be sure to keep it away from your pet’s eyes—the mixture is nontoxic bit it can sting.—Gian Trotta | e-mail | Twitter

Essential information: Find out how air purifiers fared in removing household odors. Visit our cleaning-supplies hub for details on a range of cleaning products and try these recipes for low-cost homemade cleaning products.

Q&A: Does it make sense to buy flood insurance?

I live in a coastal area. Should I buy flood insurance?

It doesn't take a Katrina-style coastal disaster to bring flood damage your way. Snowmelt repelled by frozen ground can cause flooding. New development can leave less soil surface to absorb water, making formerly safe homes suddenly vulnerable.

Yet a typical homeowners insurance policy won't cover those perils. You'll need separate flood insurance, which ranges in cost from several hundred to several thousand dollars a year, depending on coverage and risk levels.

"With most insurance, we say if there's any doubt, don't buy it," says Robert Hunter, director of insurance for the Consumer Federation of America. "But in this case it's the opposite."

Learn more about flood insurance in this article on ConsumerReports.org and watch our video (right).

Essential information: Our Storm & Emergency Guide offers practical advice  on dealing with weather-related situations.