The first floor of Elga Gemst’s house in Moretown was like a natatorium on Aug. 28. The water from the brook that runs along her yard became a deep river, filling her lawn and the inside of her house until it reached the ceiling of the first floor.
Gemst rode out the storm on the second floor. As the water spilled into the building through the window sashes and filled the space, she realized she had left her medication in a cupboard in the kitchen. She swam to retrieve it, pushing her steel door refrigerator, which had gone belly up, out of the way to get to it.
Like other Tropical Storm Irene survivors in Moretown, Gemst is grateful to the volunteers who have come into town to help with recovery efforts. More than 1,000 people have gutted houses, cleaned belongings and hauled furniture and appliances to the landfill over the last week. Moretown residents who live in the hills around the village have been the mainstay. They’ve cooked meals, babysat and taken in laundry and dishes for flood victims.
By Tuesday, Gemst’s home – which features slate floors and solar panels — was gutted down to the studs. Fans were blowing air across the floors. She says the cost to restore the 1830s cape, which survived the flood of 1927, will be at least $300,000. Gemst is one of the lucky ones, however; she has flood insurance.
Most Vermonters who were hit by the floodwaters don’t, and the state is scrambling to find housing for the more than 700 homeowners who were displaced by Irene.
Read related story about FEMA’s Irene damage tally.
While Gemst is living in the second floor of her home, many other Vermonters aren’t as fortunate. Mike and Susan Lavign, who lived in the Patterson Mobile Home Park in Duxbury, lost everything on Aug. 28 when water filled the park with more than 5 feet of water in a 40-minute period. All 19 of the mobile homes in the park were destroyed. The couple is now living in the windowless basement of their daughter’s house.
Gov. Peter Shumlin promised in a press conference on Tuesday to get permanent housing for Vermonters who have nowhere to go or an inadequate place to stay. He said he believes the number of residents who have been displaced by Irene is much higher than the preliminary total from the Federal Emergency Management Agency.
“We’re just starting the counting,” Shumlin said. “I was in Northfield yesterday. There’s got to be 60 to 70 people right in that little community on River Street, and around, that all got flooded out. It’s going to be a big number, and we’re moving as fast as we can.”
Shumlin announced that he has formed a housing task force and a recovery strategy “to get everyone into housing as quickly as we can.”
Shumlin urged second homeowners who don’t use their residences permanently to call his office.”
That includes a novel plan to match second homeowners with Vermonters who need a place to live.
Shumlin urged second homeowners who don’t use their residences permanently to call his office. “We need you now,” the governor said. “We need your generosity and your kindness in making these homes available to good, hardworking Vermonters who have lost their homes.”
His administration has also requested a waiver from the federal government that would give flood victims access to Section 8 Housing and Urban Development rental housing, regardless of their income levels. The state is also asking for a temporary expansion of the Section 8 housing program in Vermont to accommodate the hundreds of people who are now homeless as a result of Irene.
The state is also opening “homeownership” centers for Vermonters who need help finding housing and applying for federal programs. These centers will be associated with the FEMA disaster recovery centers and American Red Cross programs.
Without flood insurance, rebuilding will be difficult for many Vermonters
Flood victims are eligible for a maximum of $30,400 in federal aid through FEMA, but that won’t be enough for Vermonters who lost their homes and their belongings when Irene struck.
Homeowner insurance policies explicitly exclude floods, water damage and earth movement (earthquakes, mud floes and sink holes).
Only 17 percent of Vermonters, or 3,400 people, who live in a flood plain have flood insurance through FEMA, according to Susan Donegan, deputy commissioner of the Department of Banking, Insurance, Securities and Health Care Administration. (FEMA provides underwriting with private insurers for high-risk areas.) Policies through this program cost about $2,000 per year, she said, and they cover the replacement value of the building.
Private insurance with flood-plain coverage can cost as much as $10,000 a year.
“It’s safe to say ,,, a lot of people in Vermont don’t have flood insurance,” Donegan said.
Most people are aware that homeowner’s insurance doesn’t cover damage from floods, but sometimes, Donegan said, people “don’t pay attention to the details until we have a need to pay attention to the details.”
“Look at all the people who lived on the side of a mountain that didn’t think they needed flood insurance. Now they do.”
It’s still worthwhile, she said, for flood victims to call their insurance agent, ask them to come out and look at the damage, and re-read the policy. Donegan said many local insurance companies are offering a moratorium on premium payments for some customers.
“If you’re facing hardship, call your insurer, and let them know you’re in need of relief and see what can be done,” Donegan said.
In the near future, Donegan said homeowners will see “auxiliary problems.” Mold will start to grow inside some buildings, and it won’t be covered by insurance because it will be considered to be a result of the flood.
She urges all Vermont homeowners and renters to buy flood insurance.
Vermonters should contact banks
Chris D’Elia, executive director of the Vermont Banking Association, said the financial realities are going to hit home for Vermonters as they begin to figure out whether they can refurbish flood-ravaged homes.
Homeowners who hold large mortgages on homes that were destroyed or badly damaged are going to have a tough time rebuilding, Donegan and D’Elia said.
“Many may have to tap into savings or borrow against retirement or work with the bank to refinance in order to rebuild,” D’Elia said.
People without independent resources, however, may be out of luck.
Regulators have given banks in Vermont more flexibility, and D’Elia said lenders, in some cases, are deferring mortgage payments or interest.
“I would encourage them (homeowners) to communicate with local banks when they feel they have the opportunity to,” D’Elia said. “One of things we would expect is, people who lost everything aren’t going to be making payments. They need to reach out to banks and explain their circumstances.”
