Indiana Will Send Insurers Back to School for Flood Coverage

This winter’s flooding has prompted Indiana state insurance regulators to require a training course for agents selling flood coverage.

Those already selling insurance will have to take a continuing-education course of at least three hours by 2010, the state Department of Insurance announced. After July 1, new agents will have to take the course before they sell their first policy.

“This is somewhat of a unique and complicated product, and I think it’s important that agents are properly trained to sell it,” Insurance Commissioner Jim Atterholt said.

He said state insurance officials who have visited flood sites this year have fielded many questions about insurance coverage.

Home insurance generally doesn’t cover flood damage. Only 1 percent of the state’s 2.3 million homes have flood insurance, according to the insurance department, which totals insured flood losses from 1998 to 2007 at around $40 million.