Program Says It Improves Insurers Public Image

NU Online News Service, April 9, 11:23 a.m.EDT?A program that works to educate homeowners about homesafety risks and gives them cash grants said its efforts areburnishing the image of insurers with community residents whiledrawing insurers to cover "riskier neighborhoods."

Seventy-seven percent of program participants, when surveyed,said their perceptions of the insurance industry had improved afterreceiving risk education from Loss Prevention Partnerships, thegroup said.

LPP is a demonstration project of the NeighborWorks NationalInsurance Task Force in Washington. NITF said the LPP program hasnow reached its midway point and shown tangible results. The LPP'sgoal is to educate homeowners about home safety and reduceinsurance risk.

More than $1.6 million in aid has been given out by LPP,according to the Task Force.

NITF said five cities are participating in the program, eachfocusing on a specific peril: Chicago and St. Louis, fire; StatenIsland, N.Y. water damage; Richmond, Va. and Denver, home theft andburglary.

The demonstration program includes an educational component inwhich residents are informed of ways to protect their investmentand guard themselves against potential losses.

Each city site finances home-safety improvements for residentswithin targeted communities who need repairs and/or improvements totheir properties. The LPP entails three years of programmaticactivity, with an additional two years of data collection, the TaskForce said.

NITF reported that during the first half of a data collectionperiod, the program has educated 2,280 individuals in home safetyseminars, conducted 839 home safety inspections, made 314 loans andgrants home safety totaling $1.66 million.

NITF Director Todd Pittman said the pilot program has done a lotto strengthen relationships between insurers and communityresidents. "Insurers have become more involved in the communities,and residents' views of insurers have changed for the better."

Eighty-nine percent of LPP seminar graduates have taken steps toimprove the overall safety of their homes, and most of those planto take additional steps, according to the NITF.

Clayton Adams, vice president of community development for StateFarm Insurance Companies and NITF chair, said through the program,"Insurers have come to feel more confident serving economicallyriskier neighborhoods when they are aware of the presence of aNeighborWorks organization or other community developmentcorporation that works with residents to improve their communities.Reluctance to insure gives way to opportunities to penetrate newmarkets."

The program, which is conducted in partnership amongNeighborWorks community development organizations and insurancerepresentatives, is funded by the Ford Foundation, insurancecompanies and Neighborhood Reinvestment Corporation. Due to thesuccess of the program, the NITF plans to expand it to othersites.

NITF said its membership comprises insurance companies,insurance industry trade associations, insurance regulators,educational institutions, Neighborhood Reinvestment Corporation andthe members of the national NeighborWorks network.

The Task Force said its annual Insurance Symposium and nationalmeetings, part of the Neighborhood Reinvestment Training Institute,will take place Aug. 20-21 in Washington, D.C.

Neighborhood Reinvestment Corp., which founded and supports thenational NeighborWorks network, is a public nonprofit corporationthat supports neighborhood revitalization through increasedhomeownership, resident leadership training and development ofdecent affordable rental housing. Last year it generatedapproximately $1.7 billion in local investments.

he LPP Mid-program Report and information on participating inthe National Insurance Task Force or the symposium is available atwww.nitf.nw.org, Mr. Pittmanat (404) 347-6203 or [email protected].