The National Association of Insurance Commissioners (NAIC) released new online quiz “What the Flood!” as part of its #YourRiskIsReal campaign, an ongoing effort to educate consumers about flood risks and the need to consider purchasing flood insurance. The #YourRiskIsReal campaign educates consumers about flood risks and dispels dangerous misconceptions about flood insurance.
The short, interactive quiz presents complicated insurance concepts in easy-to-understand terms. Sample questions include: “Is damage from a busted bathroom pipe and a burst levee covered by the same policy?” and “If a hurricane floods your car, do you file a claim with auto or home?”
“There’s a lot of confusion out there about insurance coverage for water-related damage. Insurance Commissioners want consumers to understand which insurance covers the various flood perils, ” said Eric Cioppa, NAIC President and Superintendent of the Maine Bureau of Insurance.
According to a recent national survey sponsored by NAIC, 41% of Americans agree or strongly agree that flood insurance is a “good idea,” yet only 17% say they have purchased flood insurance. (Federal Emergency Management Association (FEMA) estimates that only about 3% have flood protection.)
Flood insurance policies are available through the National Flood Insurance Program (NFIP) and on the private market.
Some erroneous beliefs about flood insurance commonly held by consumers include:
- Myth: My homeowners insurance covers me against floods.
- Reality: Most homeowners and business insurance policies do not cover damage caused by flooding.
- Myth: FEMA assistance is just as good as an insurance policy.
- Reality: Not everyone will qualify for FEMA assistance after a disaster, and grants (averaging less than $8,000) are not enough to cover all costs after a flood.
- Myth: My home will be fine once it dries out.
- Reality: Flooding can damage the foundation of a house, as well as the walls and subfloors, causing mold and other problems. Fixing the damage is expensive.
The survey was conducted online by Engine among a demographically representative U.S. sample of 1,004 adults, including 502 men and 502 women age 18 and older. This survey was live May 20-22, 2019. Raw data was weighted by age, sex, geographic region, race and education to ensure reliable and accurate representation of the total U.S. population 18 and older.
The NAIC, together with FEMA, will host a Twitter chat from 2 to 3 p.m. ET on Tuesday, June 18. Responding to questions in real time, @NAIC will lead the chat focusing on disaster preparedness (floods, wildfires and other events) using the hashtag #YourRiskIsReal.