The majority of home owners report know about flood insurance, yet only a small percentage actually add the extra coverage to their standard homeowner’s insurance policy, according to a new study by Bankrate.com.
Eighty-one percent of Americans say they are aware that standard homeowner’s insurance policies do not cover flood damage. But only 13 percent of home owners report having a flood insurance policy, according to a 2012 poll conducted by the Insurance Information Institute.
Flooding is considered the U.S.’s No. 1 natural hazard, according to the Federal Emergency Management Agency and its National Flood Insurance Program.
FEMA classifies most homes as either high-flood risks or low-to-moderate, but only 51 percent of home owners in the Bankrate.com survey say they know the correct FEMA flood-risk designation of their home.
“This is a classic ‘do as I say, not as I do’ situation,” says Doug Whiteman, insurance analyst for Bankrate.com. “The vast majority of Americans know the key facts about flood insurance, but they haven’t taken the necessary steps to protect their homes.”
Whiteman says the average flood insurance policy costs about $50 per month.