Press Releases
September 6, 2007
Conrad Continues to Fight for Northwood
Senator Looks to Make Sure Underinsured Families Can Rebuild
Washington – Senator Kent Conrad today continued to fight for Northwood, North Dakota and reiterated the need for federal disaster aid to help families devastated by the August 26th tornado.
“The Northwood community has the heart and determination to overcome this disaster — and they will. But they need a little help,” Senator Conrad said. “These people need disaster assistance and they need it now.”
Last week, officials from the Federal Emergency Management Agency (FEMA) said that since 90 percent of the homes in Northwood were insured, homeowners would not likely qualify for Individual Assistance. However, Senator Conrad has argued that the homeowners should qualify for Individual Assistance, because many were underinsured as far as rebuilding costs.
Senator Conrad sent a letter to FEMA Administrator R. David Paulison yesterday urging him to immediately approve Individual Assistance for families in Northwood, including aid for those whose homes were underinsured.
“Homeowners often just get enough insurance to buy a similar home in the same town. But in the case of Northwood, when half the town is destroyed, that option doesn’t work,” said Robert Carlson, president of the North Dakota Farmers Union. “Many of the families in Northwood are being forced to build from scratch.”
The most recent data from representatives of Farmers Union Insurance show the company has policies on 169 of the roughly 300 residential structures in Northwood. Four homes have less than $50,000 coverage; 68 homes have $50,000 - $99,999 coverage; 82 homes have $100,000 - $199,999 coverage and only 15 homes have coverage of $200,000 or more.
However, estimates to rebuild start at a minimum of $150,000 - $200,000. This demonstrates clearly that there is significant underinsurance in the community.
“We want families to rebuild and stay in Northwood. However, the cost to rebuild for many far exceeds their insurance coverage,” Senator Conrad said. “If we want to keep these families in Northwood they will need federal assistance.”
