Most property damage caused by overflowing rivers flooding the Northeast is uninsured because property insurers exclude flooding from homeowners policies and most property owners in the region do not purchase flood insurance from the federal government. The RAND Corporation reports that less than 1 percent of homeowners outside flood-prone areas in the Northeast purchased flood insurance this year. Within flood-prone areas, 28 percent of homeowners in the Northeast bought flood insurance.  In late June, rising floodwaters caused by a week of storms have forced evacuations and states of emergency across the Northeast, most seriously in Pennsylvania. New York Gov. George Pataki said damages in his state could reach $100 million.

July 11, 2006