I find that there are a few factors in declining flood insurance in the Northeast.  First,  many of the homes on Cape Cod have no mortgages.  They are owned by trusts or elders who perceive that, since they've never had any flood damage, their luck will hold out.  

Another, is that many rely on FEMA.  My father lives on a very small river in NH.  It had virtually dried up over the past few decades.  However, one winter's extensive snow and a rapidly warming spring caused a "melt" that flooded his house with 5 feet of water.  FEMA stepped in with $20K within three weeks.  Why should he pay for flood insurance, when the government will bail him out?

Not the best way to think, but it seems to be working!

Good point Candice!!!  Everybody is in a flood zone - but one that may not require flood insurance but should.  Chicago is known for its backup in the basements and that goes under a different policy.  There's the case where someone forgot to turn off the control valve by the DesPlaines River and my girlfriend and her husband woke up only because water was at the top of their matter and she saw her shoes floating nearby!  

The City has some system whereby controlling how much water goes into the lines and they close them off!  Well, last June - too late and I was working on a rehab job and my crew were on the roof and yelling, water!! Water!!! and I rushed out the front door to see the alarm when this nice 3' wave of water was rolling down the street, spraying water all over the place, going in the back doors of peoples homes.  I had just installed a new type of door in the basement and it held the water from coming in - which was 3' high - step down stairs.  Mistakes happen, but the City doesn't pay for their mistakes - well, at least not these.  

Good point.  

Candace,  I was on vacation in Minnesota and there was flooding everywhere.

But the day I left, my sprinkler line broke, and with all the rain we had been getting out here in Idaho, it helped to flood my neighbors basement.  I don't have a basement as they are prone to flooding out here with the spring "melt".  Needless to say,  my homeowners insurance will probably be tapped as I don't think my neighbor has "Flood Insurance".  They live in Scottsdale, AZ. and don't come up to there house very often.

I remember the first home I bought (it was in Louisiana).   I was young and poor and I complained and complained about being forced to purchase flood insurance.  The home was in a flood-zone, but the flood-zone maps for that area of the city were 10 years out of date!  A HUGE open culvert had been installed nearby, which could handle a whole river of water!

6 days after closing, we got 10 straight days of torrential rains, and I watched as the waterline overflowed the huge culvert, backed-up into the street, then into my yard.... and crept toward my front door....the house with new carpet, new paint, new floors, and new(ish) furniture.

Eventually the flooding stopped 4-5 feet from my door.   And I had a new found appreciation for flood insurance!

All I can say is you are right Candice, and it is a bad day when you wake up and see your shoes floating by. :)

Candice not only flood insurance but make sure you have enough of just plain homeowners.  The fire victims from last years fires are finding out that their insurance was not enough to rebuild their homes.  They are talking about them but what about that one home that burns or has water damage.  The prices of replacement are much higher now then 10 yrs ago.  When was the last time you checked your policy?  

Not to worry about the dam, just keep your new rafty toy inflated and stocked!

Jana

I'm actually one of those who don't have flood insurance and wouldn't consider getting one unless ...

1. was in the flood plain

2. was in a low lying area within a city or subdivision, etc. where common sense would tell me that couple big rains and I'll be in a one big lake

3. lived in cities like Chicago (as Barb mentioned) where you can get flooded thanks to the city system that's designed to keep the water away from the downtown and as a result potential flood the basement.

Am I taking the risk of getting flooded by the next big storm that will knock out the power and therefore shut down my sumpump? You bet! But rather than spending money on flood insurance, we'll go another route ... we'll be getting a generator so that if the power goes out, we have a back up ... one that last longer than just a backup battery.

Last August, in Des Plaines (Barb, looks like we have the same town to refer to :-) ... there was a huge storm that went through the town and in some subdivision, power was out for 3 days ... basements were flooded  ... people didn't have flood insurance ... they did have sumpumps and the backup battery system, but no such system can keep them from getting flooded for 3 days without power.