20
Oct

Homeowners Underinsured For A Total Loss

Approximately 16 percent of homeowners insurance policyholders indicate they carry less coverage than would be required to rebuild their home fully in the event of a total loss. Among these policyholders, satisfaction averages 739 – more than 40 points lower than among policyholders who say they have sufficient coverage. This is according to J.D. Power and Associates 2011 U.S. National Homeowners Insurance Study.

The study also found that less than one-in-10 homeowners insurance customers in New England and the Mid-Atlantic states report carrying flood insurance prior to Hurricane Irene. While a higher proportion of policyholders in the Gulf States – more than 25 percent – carry flood coverage either through their homeowners insurance company, state flood plans or another provider, this is still a relatively low proportion, considering the frequency of hurricanes and other severe weather events in the region.

 -Robert Catalano