Survey Shows A Large Knowledge Gap Amongst Americans When it Comes to Coverage
During Flood Safety Awareness Week, survey highlights common misperceptions
regarding coverage for flooding
NORTHBROOK, Ill., March 21, 2013
NORTHBROOK, Ill., March 21, 2013 /PRNewswire/ --As part of National Flood
Safety Awareness Week and in advance of the spring storm season, a survey
commissioned by Allstate Insurance Company shows Americans may not be as
familiar with their insurance policy as they should be, and therefore may have
misconceptions that they have flood coverage when they don't.
The survey of residents with homeowners and renters insurance from various
companies shows 44% of Americans believe they are covered for weather-related
floods. But when asked whether they actually have a flood insurance policy
through the National Flood Insurance Program (NFIP), only 15% admit to having
specifically purchased a supplemental flood policy.
"Results indicate that there is a knowledge gap among some Americans who
believe they are covered in the case of flood, but in actuality, are not
covered," said Mark Green, senior vice president, Allstate. "Unfortunately, we
have seen this scenario play out following a number of major disasters. Some
people believe flood is part of their standard homeowner policy and sadly,
don't realize they need a separate flood policy until it's too late."
Flood insurance is offered through the federal government's National Flood
Insurance Program and policies are sold and managed by private insurance
companies like Allstate.
Allstate reminds Americans that now is the time to prepare for floods and
consider their flood insurance needs. Floods are the #1 natural disaster in
the United States. The average flood loss cost is $30,000 for homeowners and
$75,000 on commercial property according to the NFIP. Add to that the fact
that floods can happen anywhere and in all 50 states. Nearly 20% of flood
claims come from moderate to low-risk flood zones.
Besides educating yourself on flood, Allstate recommends reading through your
insurance policy and if you have questions about coverage call an insurance
agent. Here are a few other things property owners can do to help prepare,
courtesy of the Insurance Institute for Business and Home Safety:
oKeep drains, gutters and downspouts clear of debris.
oPrepare an evacuation plan with a kit that includes insurance documents,
medications and critical items in case you need to leave your home for a
oInspect sump pumps and drains regularly to ensure proper operation.
oHave a licensed electrician raise electric components at least 12 inches
above the expected flood levels for your area.
oTo prevent sewage backup, have a licensed plumber install an interior or
exterior backflow valve. Make sure your yard's grading (slope) directs
water away from the building.
oHave the installation of your furnace, water heater and other permanent
equipment modified so that they are elevated above the expected flood
levels for your area.
The tips provided here are guidelines. Please use your best judgment when
evaluating your flood preparation needs. For more ways to prepare, respond and
recover from a flood, visit the Insurance Institute for Business and Home
National Flood Insurance Program policies can take up to 30 days to go into
effect. Contact your local Allstate agency to talk about your flood insurance
The study was based on telephone interviews with a nationally representative
sample of 1,000 residents with homeowners or renters insurance, age 18 years
and older across the United States. Interviews were conducted May 16-17 & 19,
2012, and the survey has a margin of error of+ 3.1% at the 95% confidence
interval. The survey investigates Americans' attitudes, opinions and
experiences about how well prepared and covered they are in the case of a
natural disaster striking. The survey was conducted by FTI Consulting for
The Allstate Corporation (NYSE: ALL) is the nation's largest publicly held
personal lines insurer, serving approximately 16 million households through
its Allstate, Encompass, Esurance and Answer Financial brand names and
Allstate Financial business segment. Allstate branded insurance products
(auto, home, life and retirement) and services are offered through Allstate
agencies, independent agencies, and Allstate exclusive financial
representatives, as well as via www.allstate.com, www.allstate.com/financial
and 1-800 Allstate®, and are widely known through the slogan "You're In Good
Hands With Allstate®." As part of Allstate's commitment to strengthen local
communities, The Allstate Foundation, Allstate employees, agency owners and
the corporation provided $29 million in 2012 to thousands of nonprofit
organizations and important causes across the United States.
SOURCE Allstate Insurance Company
Contact: April Eaton, +1-847-402-5600
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