So let's assume most agents did, in fact, at least mention the necessary coverages to their clients and prospects. Add to those numbers the many (or few, depending on your opinion) insureds who actually heeded the hypothetical warning on the front of their property policy that stated “CAUTION: This policy does not, shall not, never did and never will provide flood insurance! Please contact your agent if you want this valuable coverage. P.S.: You live 23 feet below sea level.”

Why, then, did so few carry the coverage?

While the reasons may be many and varied, the Katrina victims uninsured for flood fall into three groups whose circumstances explain why so many were so vulnerable.

One group simply couldn't afford flood insurance. It is well documented that a significant number of the flooded residents lived at or below the poverty level. In many cases, they were renters whose landlords considered their properties hardly worthy of regular upkeep, much less pricey flood-coverage premiums. I have no doubt that at least a few of those landlords consider the flooding a windfall that freed up their property for potentially far more profitable endeavors.

Another segment of Katrina victims truly believed their property coverages included flooding, particularly flooding from hurricanes. While it may seem negligent, most insureds do not spend a great deal of time analyzing their insurance and often have misconceptions of what their coverage will and will not do. These unfounded beliefs usually lead to disappointment, disillusionment, and undesirable and unexpected expenses, such as uncovered losses and attorneys fees.

A third group–the largest, I believe–is best represented by the saying, “Denial is not just a river in Egypt.” In essence, those in this group understood the coverage needed. They understood the possible costs of lack of insurance. Yet, they stood there on top of that levee and said, “Nah, it'll never break.” Since this group includes every government official who failed to effectively respond to the flooding as well as those who failed to properly fund and maintain area safeguards against flooding, one can hardly condemn the public's illusions of security.

This brings us to the opportunity of which I earlier spoke. While there may be little those of us in the protection sales arena can do for the first group of Katrina victims, the second and third segments represent the proverbial “fields white unto harvest” for the insurance practitioner steeped in the wiles of coverage and astute in the ways of humans.

Those who are ignorant can be educated. Anyone can slap a sticker on a policy and say, “They should have read it,” then walk away and leave the insured to suffer. But those who invest the time to clearly explain the limitations of standard coverage may reap the reward of a newly enlightened client who either purchases the needed additional coverages (hurray for the added coverage and commission) or signs the form stating you offered the necessary coverages, but chooses not to follow your recommendations (hurray for the E&O protection). Can you say “win-win”?

May I suggest a process for awakening those in denial?

First, know your area and clients well enough to know their most acute potential coverage blind spots. Have rebuttals ready for your client's “reasons” for rejecting coverage: “Our house has been through these things before; we'll be fine.” “Seriously, you don't really think that volcano is going to erupt, do you?” “Folks that have lived here for years say the river has never risen that high.” “My kids know how to drive a jet ski.” “Sure, he's a pit bull, but he's totally harmless.” Show your clients that their excuses hold as much water as a New Orleans levee.

Second, know your available coverages well enough to have no doubt of the client's need. Only then will your voice and attitude clearly channel the righteousness of your mission. You must be able to explain potential coverage gaps, the coverages to fill them and the implications of going without them in terms they clearly understand. In short, they need to “get it”: the how, what and why of the damage they may suffer if they remain in the darkness of denial.

Third, commit to an ongoing effort. You may create an insurance version of an entire 12-step program before the scales fall from their eyes. (Could Katrina be considered an “intervention”?) A few may only need a simple wake-up call; e.g., the example of someone who didn't think he or she would suffer a loss and was proved wrong (of which there are far too many readily available illustrations). Those who deal with addiction treatment will tell you that progress will seldom result from a one-time comment: “You know, you have a problem.” To put it in insurance agency terms, a single post card, brochure or brief article in an agency newsletter or on a Web site is unlikely to awaken the unbeliever. The “wake up” process must become an ongoing campaign (“Got Flood?”) reflected in every agency interaction. Brochures, interviews, phone calls, e-mail signature tags, newsletters, post cards and Post-it notes must all make clients aware of key risks. Promoting flood insurance should not be a one-time event but a way of life.

While no one will claim such a process will save all insurance holdouts, would not the salvation of even one be worthy of your efforts? OK, two or three, then, depending upon the size of the account. And to be realistic, what you may actually get as gratitude from those you rescue is a begrudging response: “All right, already. Get off my back. I'll buy the stupid stuff.” But deep down inside, you'll know that the client is mentally leaping from his or her chair, aflame with new insight, proclaiming, “I see the light! Oh, how could I have been so wrong? Yea, though I have been walking through the valley of the uncovered claim, I fear no insurable losses, for thy policy and thy form, they covereth me!”

Happy Thanksgiving, indeed!

Chris Amrhein is an insurance educator and speaker with more than 30 years in the industry. He is also chief fun officer of www.insuranceisfun. com. Readers may contact Chris at [email protected].