Elizabeth McCabe believes her 1867 Victorian home on West Main Street in Gowanda sustained about $250,000 damage from the Aug. 9-10 flooding. One week later, she’s still not sure what — between her house, her garage and the thousands of dollars worth of items inside — her insurance will cover.

It’s a recurring tale in the aftermath of some of the worst flooding in years for Western New York, where numerous homes were left damaged or condemned after surges of rainfall submerged areas of Gowanda and Silver Creek.

Although some residents admitted they just didn’t think $600 a year in flood insurance was worth the cost, others, such as McCabe, said they feel cheated out of the coverage they were willing to pay for.

“It’s ridiculous,” she said. “But I know a lot of people in the village didn’t even have insurance . . . I feel bad for them.”

When McCabe took out a mortgage on her house, the bank required her to buy flood insurance that would have provided ample compensation for damage to the historic home and its contents, she said.

But after Washington Mutual took over the mortgage, McCabe said, the now-defunct bank told her the insurance she carried was too generous and would provide a level of compensation worth more than her home and its contents. A 2009 Cattaraugus County appraisal valued the property at $79,079.

The bank ultimately refused to let her keep that insurance coverage and forced her to take out a new policy that will pay out far less, McCabe said.

She also wasn’t pleased with the official who stopped by her house last week to assess the damage to the structure and who wouldn’t let her have a copy of the report he made.

It’s an unlikely scenario, but it is possible, said John Mechem, spokesman for the Mortgage Bankers Association in Washington, D. C.

“That doesn’t make sense to me,” Mechem said. “The lender frequently takes a loss if there’s damage on the home.”

Instead, a local mortgage office could have persuaded a customer the expense wasn’t needed — something the MBA does not recommend, he said.

In the wake of Hurricane Katrina, the Federal Emergency Management Agency has made a concerted effort to educate the public on flood insurance, which is funded by the federal government and underwritten by private insurance companies, said Scott Kearns, an agent for the Markham- Bixby Insurance Agency in Gowanda.

The program is naturally confusing, said Kearns, whose agency has fielded calls on the subject daily since the storm.

In short, banks require coverage for mortgaged houses in flood zones, while people who own their homes have to decide for themselves. “As insurance agents, we encourage it,” he said.

Even figuring out what will be covered and what won’t can be complicated, Kearns said.

In general, the homeowner could take out coverage for the building, coverage for contents or coverage for both, Kearns said, and homeowners have flexibility—and limits—within those policies.

For example, plans only cover certain basement items, such as hot water tanks, boilers and furnaces. On the first floor, such limitations are lifted, Kearns said.

Claims adjustors from the federal flood program are starting to compare the lists of flood-damaged items with homeowners’ policies to determine what is covered and what isn’t, Kearns said.

“It all comes down to that limit that you set,” when taking out the policy, he said.

The whole process isn’t worth it, said Bruce Bartholomew, who lives on the west side of Jamestown Street in Gowanda. While floodwaters destroyed parts of his neighbors’ homes, his home was largely left untouched.

Even so, he still said he has no intention to buy into the program.

“The cost is so [high] it doesn’t pay for itself,” Bartholomew said, referring to a quote for an $8,000 policy covering his basement.

Only about 40 percent of people living on flood plains own flood insurance, and many of those who don’t do not understand they’re not covered, said Loretta Worters, vice president of the Insurance Information Institute in New York.

“Typically, after a flood, everyone runs out and buys the coverage,” she said. “Then a year later, it’s very common for a lot of people to drop it.”

Worters said she recommends people just pay for the coverage, even if they don’t technically live on a flood plain. Otherwise, “you’re homeless and you still have to pay your mortgage,” she said.

That’s all fine, said Annette Kramer, whose basement and first floor were destroyed by the storm.

The Chapel Street resident owns insurance, but only because the bank holding her mortgage requires it, she said. Both Kramer and her husband said they still don’t know what will be replaced.

dyadron@buffnews.com and swatson@buffnews.com