Property Owners’ P&C IQ Lacking
A survey by the National Association of Insurance Commissioners (NAIC) reveals that one-third of homeowners believe flood damage is covered by their standard policy, more than 50 percent think their policy covers them in the event of a water line break, 35 percent believe they will be compensated for an earthquake, and a similar percentage think their policies cover mold. In addition, fewer than 22 percent of homeowners view changing weather patterns or disasters as an important factor when updating their homeowners insurance policy. Nearly all policies provide fire, wind, hail, lightning, and explosion protection but exclude damage caused by earthquakes, floods, mold, nuclear incidents, terrorism, and acts of war.
The NAIC survey revealed 56 percent of homeowners have not reviewed their insurance policies in more than a year and 14 percent are unsure when — if ever — they last reviewed their policies. Research also indicates that nearly half of homeowners (44 percent) have a home inventory. But of those who have an inventory, more than 40 percent have not updated it in more than a year.
“During the past decade, the United States has experienced significant shifts in the frequency, severity, and location of natural disasters,” said NAIC CEO Mike Consedine. “According to our survey, most consumers aren’t connecting the dots between these shifts and the impact on their home insurance needs. Missing these links can be costly.”