Enhancing Homeowners' Disaster Preparedness: A Closer Look at Insurance Coverage

Increased Disaster Preparedness Among Homeowners

A recent survey conducted by the Triple-I in 2020 reveals a significant increase in homeowners' efforts to protect their properties against natural disasters such as floods and hurricanes. This development is particularly timely as the 2020 Atlantic hurricane season has started early and is expected to produce a higher-than-average number of storms. Sean Kevelighan, CEO of Triple-I, notes that the insurance industry's emphasis on resilience is beginning to yield positive results, with more Americans acknowledging the real risks their homes face from such disasters.

Understanding Insurance Coverage Still Lacking

Despite the improved disaster preparedness, the survey also highlights a significant gap in consumer understanding of insurance coverage. Notably, 27 percent of homeowners surveyed reported having flood insurance, which is the highest level recorded since the survey began in 2007. However, industry estimates suggest that only between 10 to 15 percent of U.S. residences are actually covered by flood insurance. This discrepancy indicates a potential misunderstanding among homeowners about their actual coverage, providing insurers with an opportunity to educate their customers on the necessity of purchasing flood insurance, either through the NFIP or private insurers.

Expanding the Scope: Wildfires, Earthquakes, and Auto Insurance

The survey also examined homeowners' assessments of risks from wildfires and earthquakes, as well as the percentage of U.S. drivers who received auto insurance premium relief this year due to reduced driving during the pandemic. These findings underscore the importance of comprehensive risk management and insurance education for homeowners and drivers alike.

For homeowners, it is crucial to verify their insurance policies to ensure they are adequately covered for various natural disasters. Drivers should also take advantage of any premium relief opportunities provided by their insurers during periods of reduced driving. Staying informed and proactive can significantly mitigate the financial impact of unforeseen events.