Homeowners See Risks From Extreme Weather, Unsure About Solutions
NAMIC teams up with The Risk Institute at The Ohio State University Max M. Fisher College of Business on national survey
INDIANAPOLIS (Oct. 20, 2022) Homeowners in hurricane-prone coastal states and around the country believe severe weather is increasing and that their property is at growing risk, but they aren’t confident in how to better protect their properties or the role insurance plays in that protection. Those are among the key findings from a new survey by the National Association of Mutual Insurance Companies.
The national survey of homeowners, conducted by The Risk Institute at The Ohio State University Max M. Fisher College of Business in late August, well before the most recent hurricane, revealed that 78 percent of respondents believe extreme weather is increasing where they live, and 71 percent fear their homes will be damaged by extreme weather or a natural disaster in the next three years. Even more homeowners, 88 percent, feel motivated to protect their homes, but nearly 60 percent say they don’t know what they can do. The majority of respondents cited expense and difficulty as the two most significant reasons for not taking action to reduce their risks from extreme weather or disaster.
NAMIC commissioned The Risk Institute survey to better understand the concerns of homeowners across the United States in relation to perceived threats from weather events and disasters, what actions they’ve taken, and why or why not. Neil Alldredge, NAMIC CEO, said the association finds the results worrisome.
“The devastation in Florida from Hurricane Ian is a heartbreaking reminder of the power of Mother Nature. It also underscores the importance of knowing what kind of insurance you have and whether it provides enough protection,” Alldredge said. “For example, hurricanes and tropical storms can cause both wind and flood damage, and while a typical homeowners’ policy does cover wind damage, it does not cover flooding. That has to come through a separate policy, most of which are underwritten by the National Flood Insurance Program. It’s a critical distinction that can make the difference between recovery and total loss.”
As financial first responders to extreme weather events and natural disasters, insurers know from experience that preparation is key to reducing losses, and there are steps homeowners can take both before and after a storm to help lessen the impact.
Assess your insurance coverage annually: The survey conducted by The Risk Institute found that fewer than one-fifth of respondents felt completely certain that they have enough home insurance to cover any damage to their property caused by extreme weather or disasters; yet two-thirds let multiple years pass before reviewing their insurance policies. Doing a yearly check in with your agent or carrier can help you identify vulnerabilities before they lead to liabilities.
Fortify your home: Pre-disaster mitigation can boost your home’s resiliency and save money against future damage.
Recover after a storm: For those with flood coverage, insurance claims may need to be filed with both the homeowners’ insurance carrier and the Federal Emergency Management Agency, which implements the National Flood Insurance Program. Contact your agent; record damage; and work with adjusters. Contact FEMA for additional disaster relief.
Beware of scammers: Predatory contractors are often seen canvassing neighborhoods after a storm. The Florida Attorney General’s Office recommends that, among other things, homeowners have an insurance company evaluate the damage before arranging for repairs to ensure that the work will be covered under a policy and get at least three written itemized estimates for bids or repairs.
In conducting the survey, The Risk Institute recruited a sample of 1,102 homeowners from Aug. 11-17, 2022, from Amazon MTurk using Cloud Research. The margin of error for the survey is +/- 3 percent. Homeowners ranged in age from 20 to 70 and were equally split between genders.
Lauren Anderson
317-876-4254
landerson@namic.org
Joe Arnold
614-292-3380
arnold.974@osu.edu
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The National Association of Mutual Insurance Companies consists of more than 1,500 member companies, including seven of the top 10 property/casualty insurers in the United States. The association supports local and regional mutual insurance companies on main streets across America as well as many of the country’s largest national insurers. NAMIC member companies write $357 billion in annual premiums and represent 69 percent of homeowners, 56 percent of automobile, and 31 percent of the business insurance markets.
The Risk Institute at The Ohio State University Max M. Fisher College of Business is a consortium of forward-thinking companies and academics with the mission of advancing enterprise risk management through cross-industry collaboration, academic research, thought leadership and talent development.
Article Posted: 10.20.22
Last Updated: 10.20.22
