Recognizing that most insurance companies no longer offer flood coverage State Treasurer Alex Giannoulias recently announced a new state program to help homeowners in Cook and Kane counties affected by the recent flooding with cleanup costs.
Recognizing that most insurance companies no longer offer flood coverage, State Treasurer Alex Giannoulias recently announced a new state program to help homeowners in Cook and Kane counties affected by the recent flooding with cleanup costs.
Homeowners are still cleaning up, two weeks after Illinois was hit with heavy rainfall and massive flooding that resulted in many communities being declared disaster areas.
The loan program couldn’t have come at a better time for Debra Jackson, 45, a homeowner in south suburban Harvey.
“My basement got flooded, and I lost everything down there,” Jackson told the Defender. “I don’t have any insurance so I was out of luck when it came to my items. But thanks to the state I may be able to get some of my stuff back.”
But other homeowners who do have insurance said while it’s nice that the state is making an effort to help residents, more needs to be done.
“I am looking at about $40,000 in water damage, and I know my insurance is not going to cover everything,” said Will Paige, 35, a homeowner in west suburban Forest Park.
“It would be better if these were not loans but grants that we do not have to pay back. Homeowners are already having it rough with subprime loans so why would the state offer us yet another loan to repay?”
Through the State Treasurer’s office, residents who expect insurance to cover their damages can qualify for one-year bridge loans with interest-only payments. The loans are designed so they can be paid off in one lump sum when insurance or aid comes through.
Underinsured residents can qualify for low-interest loans with repayment terms of up to five years. The underinsured storm victims must make payments on the interest and principal for loans exceeding one year. Also, loans with terms longer than two years require a compliance review.
Giannoulias said there was no time to seek non-repayable grants to help homeowners because help was needed right away.
“Many times, storm victims need to make immediate repairs to their homes while they wait for insurance or aid payments,” he said. “We help them obtain affordable rates so they can rebuild and get their lives back on track without delay.”
Under the Opportunity Illinois: Disaster Recovery Loan Program, the Treasurer’s office obtains below-market interest rates for storm victims in declared disaster areas.
The homeowners would then finance their disaster repairs through participating lenders.
Cook County Board President Todd Stroger declared a state of emergency on Sept. 14 after eight inches of rain damaged buildings and roadways and led to many flood-related displacements.
The formal declarations, which make Kane and Cook counties eligible for the Opportunity Illinois: Disaster Recovery Program, are the first step toward obtaining federal assistance, Stroger said.
For more information, call the Disaster Recovery hotline at (866) 523-0641 or email opportunityillinois@treasurer.state.il.us.
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