The past few years have consistently set records for natural disaster costs in the insurance industry. One of the biggest culprits of this is, of course, flooding. Despite that reality, there appears to be a major generational gap between people who understand the need for flood insurance, and those who think it might not be worth the investment.
A new survey found that millennials (people born between 1981 and 1996) are more likely than baby boomers (born between 1944 and 1964) to buy flood insurance. According to the data millennials are a whopping three times more likely to purchase flood insurance than baby boomers.
The survey, which was conducted by the National Association of Insurance Commissioners (NAIC) also found that less than half of Americans who think flood insurance is important have actually purchased a policy. This data is exposing a gap that many insurers will likely start capitalizing on: That gap being the fact that many people understand that flood insurance is important, but haven’t gotten around to actually purchasing a policy yet.
Of course, a big part of the problem is the common misconception that homeowners insurance policies include some form of flooding coverage. That’s completely not true. It’s imperative for homeowners to understand that if they live in an area that is at risk of flooding, they need to purchase a separate flood insurance policy.
If you have questions about your current policy, or want to learn more about purchasing a new one, we encourage you to reach out to the staff at TGS Insurance! Not only are they knowledgeable about both homeowners and flood policies, but they are always willing to work with you to find the perfect policy for your lifestyle, and your budget.
The NAIC survey was conducted online among 1,004 adults comprising 502 men and 502 women 18 years of age and older.