Sampling consumers throughout the country, the survey results display consumer opinions about flood risk and flood insurance on the back of the extreme 2020 flood year. The results provide insight into potential policy and industry approaches to addressing the large coverage gap in the US.
Key findings include:
- Risk Awareness. Most people still do not appreciate the risk their home is in of being flooded, with 60% believing they are at 'low or no risk.'
- However, overall risk awareness is increasing, as nearly 50% believe that their flood risk is higher now than when surveyed prior to the 2020 hurricane season, while only 7% believe the risk is lower.
- Confusion. There is a high level of confusion over the term "flood zone."
- 32% believe that their home is "not in a flood zone," when every home is technically in a flood zone, with some some just in higher risk zones than others.
- Another 33% don't know what flood zone they are in.
- Solving the Coverage Gap. The coverage gap remains a significant problem, as more than 90% of US homes at moderate to extreme risk of flooding have no flood insurance.
- 23% of those in high hazard areas would potentially not renew if not mandated to have flood insurance.
- When asked for recommendations on how to improve the situation, 25% of respondents support broader mandates, and 24% suggest more private competitors to the government's National Flood Insurance Program (NFIP).
- When considering whether to buy flood insurance or not, 50% of respondents expect to be able to see if homes in their neighborhood, as well as homes they are considering purchasing, have had flood losses in the past.
- Ease of Use. Accelerated by the COVID pandemic, consumers expect fully online transactions rather than invasive home inspections and paper documents. 78% believe that this is of moderate to high importance.
"The survey results indicate that consumers want the flood insurance purchase process to be easy, online, with transparency about risk and cost," said
The survey was designed and conducted by the
For the full survey results, please visit https://neptuneflood.com.
ABOUT NEPTUNE FLOOD:
Neptune Flood was founded in 2017 by insurance and technology industry veterans, including Chairman,
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SOURCE Neptune Flood