Flood Insurance for Green River Valley

10/27/2009

Many businesses in the Green River Valley are having a tough time finding flood insurance. So, state insurance commissioner Mike Kreidler wants lawmakers to help.

Commissioner Mike Kreidler has called for legislation that would provide coverage to businesses in the flood plane from Tukwila to Auburn. This area faces a heightened risk of flooding due to damage at the nearby Howard Hansen Dam.

Kreidler: "The word is out that the Green River Valley is very much at risk because of the potential of having very serious flooding there, and the insurance companies have effectively left the market."

So, Kreidler wants the state to fill the void. His proposed law would order insurers to band together as an association and offer flood insurance.

He admits the coverage would be expensive due to the high risk. And even if the legislation passes quickly, it would probably be too late to help businesses this winter.

Kreidler: "The sad news is this is a crisis that could last up to five years. So even though we might miss most of the window here for the upcoming winter rain season, we would certainly have it in place following that."

Kreidler's plan would go beyond federal insurance to also cover business interruptions and revenue loss. Federal plans are capped at a million dollars for a building and its contents.

Kreidler says more than two dozen states have this type of insurance association. His office pushed for the same legislation in 2003. I'm Liz Jones, KUOW News.

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