Consumer misperceptions of flood risk and flood insurance
The recent Neptune Consumer Survey of Flood Risk Awareness, a national survey conducted in partnership with the University of South Florida Institute for Data Analytics and Visualization, shines a light on the problem of low homeowner uptake of flood insurance, even when they are in high hazard areas.
The Neptune Consumer Survey of Flood Awareness, conducted nationally in partnership with the University of South Florida, highlights consumer misperceptions of flood risk and flood insurance options and cost. One of the key findings - Consumers significantly underestimate their level of risk of flooding.
Over 90% of America's homes that are at moderate to extreme risk of flooding are uninsured for flood insurance. At the same time, the near-monopoly federal NFIP program is losing billions and is way overdue for technology and process overhauls.
The good news about hurricanes, as compared to tornados, earthquakes, fires, and other natural disasters, is that we always are fully aware when they are on the way. No one should ever die in a hurricane.
Every state and 98% of the nation’s counties have experienced a flooding event. Still, only 4% of U.S. residents have flood insurance and only 40% of the A or V zones (FEMA designated as high risk) are insured.