Claims Pouring in from Wisconsin’s Rain Storms Last Week

In the wake of last weekend's rain storms in Wisconsin, thousands of claims, amounting to millions of dollars in payouts to policyholders, have been pouring into property insurers.  
  
"It's 1,800 claims and rising," Kelly Savage, spokeswoman for State Farm Insurance, Wisconsin's second-largest insurer of homes, said Wednesday.  
  
Madison's American Family Insurance, which covers more residences than any insurer in the state -- about one-fourth of all homes -- has received about 4,000 claims related to the storms, which dumped more than 9 inches of rain on Milwaukee and more than 12 inches on the Wisconsin Dells area. Most of American Family's claims were in the Milwaukee area.  
  
Insurance company spokesmen said dollar estimates for claims that will be paid are difficult to tally at this point because some damage, typically damage caused by floodwater that made its way into houses, isn't normally covered by commercial insurance.  
  
"It's hard at first blush to put a dollar amount on an event like this," said American Family spokesman Steve Witmer.  
  
West Bend Mutual Insurance was able to attach a dollar estimate to its claims by Wednesday afternoon, offering at least a glimpse into what might be expected overall. West Bend Mutual has had about 600 claims so far related to last weekend's storms.  
  
"We anticipate that when we get all the claims and all the numbers that we're probably in the area of $5 million to $6 million," said Scott Thomas, director of claims for West Bend Mutual.  
  
Stevens Point-based Sentry Insurance had about 400 claims through late Monday, almost all of them in the Milwaukee area, said spokeswoman Mary Weller. General Casualty, based in Sun Prairie, had more than 260 claims.  
  
"Certainly we know we are going to receive more," General Casualty spokeswoman Anne Smith said.  
  
Allstate Insurance didn't immediately have a count on claims from Wisconsin related to the storms, spokesman Eric Scott said.  
  
He noted that there is often confusion about what is covered when water damage occurs. It generally depends on how water got inside, and even then, many homeowner policies don't provide financial protection for sewer back-ups unless the policyholder has requested extra coverage for it.  
  
"Water back-up will generally cover water that backed up through an existing opening in your home that is designed to drain water out," Scott said. "So if you lose power in a storm and that causes your sump pump to shut off and that causes water to overflow your sump pump pit and get into your basement, that is generally covered."  
  
Insurance to cover damage from flood water -- water that makes its way in through foundation cracks or windows and doors -- usually must be obtained through the federal flood insurance program, Scott said. But he stressed that people with specific questions about water damage should contact their insurance agent as soon as possible.  
  
North Shore Bank announced Wednesday it would make up to $10 million available in special low-interest disaster recovery loans to help repair water damage to businesses and homes. Qualified businesses and homeowners can borrow up to $25,000 at 5% interest, the Brookfield-based bank said.