Less than half of Americans who agree that having flood insurance is important have purchased flood insurance, according to a recent national survey from the National Association of Insurance Commissioners (“NAIC”).
In a statement, the NAIC said that this disconnect between intention and action was brought into sharp relief in the Midwest and South where recovery efforts will continue for years after this spring's devastating floods.
According to the survey, 41 percent of respondents agreed or strongly agreed that flood insurance was a “good idea” but only 17 percent said that they had purchased flood insurance, and even that response may be based on a misunderstanding. The Federal Emergency Management Agency (“FEMA”) has estimated that only about three percent of homeowners have flood insurance.
“This disparity perhaps reflects the common, though incorrect, assumption that homeowners insurance covers flooding,” said Eric Cioppa, NAIC's president and the superintendent of the Maine Bureau of Insurance.
The survey of 1,000 American adults conducted in May revealed some staggering information about Millennials (those born between 1981 and 1996):
- Millennials are nearly three times more likely to have purchased flood insurance than their Baby Boomer (those born between 1944 and 1964) counterparts.
- Millennials are more likely than their Gen X (those born between 1965 and 1980) counterparts to purchase flood insurance (25 percent versus 16 percent).
- Millennials are more likely to agree or strongly agree that purchasing a flood policy is a good idea (57 percent versus 41 percent for Gen X versus 24 percent for Baby Boomers).
Learn more: www.naic.org.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].