Insurance claims rise with water

By JOSEPH M. DELEON News-Post Staff
jdeleon @ fredericknewspost . com

FREDERICK — As thousands of Maryland property owners file claims related to the torrent of rain this week, farms in Frederick County have been rescued from dangerously dry conditions.
     David Maurstad, director of the Federal Emergency Management Agency's Mitigation Division, issued a press release June 1 advising homeowners to review their insurance policies. Flooding is not covered by most policies, according to the statement.
     “Flood insurance is a vital investment to ensure that residents have adequate protection against the devastation flooding can cause,” he wrote. “Floods can happen anywhere, anytime, so everyone should consider flood insurance.”
     Most rain related claims filed with Nationwide, the fourth largest home insurer in the United States, have been for flood damage, spokeswoman Elizabeth Stelzer said.
     “Typically flood damage is not covered by homeowners insurance policies, but if water enters through a storm-damaged roof, or if a tree damaged the structure, that may be covered,” she said.
     Ms. Stelzer said some property owners are surprised when they learn a policy has less coverage than expected, and she advised checking with insurance agents to see what a specific policy entails.

Rains quench farms
Risk management specialist Gene Gantz with the U.S. Department of Agriculture (USDA) said the greatest risk to farmers are natural disasters and spinoffs from natural disasters.
     “If you have lots of moisture on the ground, like we do now, followed by hot days, it could sear and literally steam the crops,” Mr. Gantz said. “Or, winds could just blow the crops over. With the land being so saturated, the roots can't hold in the mud.”
     Crop insurance is the primary USDA program that allows farmers to protect themselves against such events, he said.
     About 60 percent of acreage in Maryland is protected by crop insurance, with more than 500 policies in Frederick County.
     The most popular crop is corn, while fruit crops, such as apples, make up the highest valued crops in the county.
     Between 2001 and 2005, U.S. growers paid $2.2 million in crop insurance premiums for $48 million in protection. Growers drew loss payments of $4.3 million, or about $2 back for every dollar paid. The federal government made up the difference.
     Don Spickler, a crop insurance agent in Clear Spring, predicted the worst rain damage to crops in Frederick County would be to corn and beans in low lying areas.
     “Some will grow back out and others won't, but we wait until after harvest time to assess the damage,” he said.
     Mr. Spickler visited apple orchards in Washington County to check for hail damage Wednesday, he said. The apples were fine.
     “Flooding is the biggest issue for everyone else, but this series of storms was certainly a benefit, because it has been so dry,” he said.
     Terry Poole from the Maryland Cooperative Extension Service for Frederick County said recent dry conditions in Frederick County brought many farmers close to disaster.
     “We didn't need this much rain,” he said, “but it's a heck of a lot better than we had before.”

Vines like it dry
Carol Wilson, owner of Elk Run vineyard in Mount Airy, said Wednesday the wet conditions could be bad for business.
     “The vines have a 20-foot root system that go deep like a tree, so we like it when it's dry,” she said. “We're hoping that now it's over and it stays dry until the end of October when we harvest.”
     A combination of moisture and high temperatures promotes disease in grapevines, such as fungus, Ms. Wilson said. This week's heavy rain knocked vines off of trellises.
     “We needed to put in bamboo posts, and it was very easy to put them into the soft ground today,” she said.
     Ms. Wilson was glad no vines were damaged. Maryland does not provide crop insurance for grape growers because the industry is not big enough.