As surging flood waters continue to inundate the Midwest, aninsurance research group announced that a study has found only 17percent of Americans have a flood insurance policy

The findings were contained in a survey conducted for theInsurance Information Institute in New York.

At the same time, in response to a question, Gary Kerney,assistant vice president of Property Claim Services–which catalogsinsured losses from catastrophes–said it expects that the covereddamage from the flooding “will be small in number since most of theaffected properties are not insured for this peril.”

The Institute said the proportion of Americans with a floodinsurance policy from the National Flood Insurance Program isrelatively unchanged from a year ago, when 14 percent said theyhave flood coverage.

There has been some improvement in the take up rate for floodcoverage, however. According to I.I.I., in the North Centralstates, where much of the flooding is occurring, 17 percent saidthey have flood insurance–up from 9 percent in 2007.

“The results show that although more people are buying floodinsurance, the percentage is still dangerously low,” said JeanneSalvatore, senior vice president and consumer spokesperson for theI.I.I., in a statement.

The I.I.I. said that according to Federal Emergency ManagementAgency data, floods–including inland flooding, flash floods andseasonal storms–occur in every region of the United States.

The I.I.I. survey also found that:

o In the Northeast, the proportion of homeowners with floodinsurance rose by 10 points–from 10 percent in 2007 to 20 percentin 2008.

o In the Western region, 15 percent said they have floodinsurance in 2008, up from 13 percent in 2007.

o Slightly fewer homeowners in the South now say they have floodinsurance–17 percent, compared with 20 percent a year ago.

These findings are consistent, according to I.I.I., with NFIPdata showing an increase in the number of people non-renewing floodpolicies in Gulf Coast states.

Annual premium for a homeowners NFIP policy starts at $112 peryear, according to FEMA, and increases according to the level offlood risk and amount of coverage needed. The maximum coverageamount is $250,000 for the structure of a home, and $100,000 forits contents.

The I.I.I. said Opinion Research Corp. interviewed 1,004 peoplefor the survey from May 15-18, 2008.

PCS, a unit of Jersey City, N.J.-based Insurance ServicesOffice, said by e-mail that for the most part, flood damage tostructures is not covered except through the NFIP, but the companyis aware of some commercial structures that are protected to somedegree by flood coverage provided by private insurancecompanies.

Examples of these types of properties include universities andhospitals–but that is not to say all such occupancies haveinsurance coverage, PCS explained. Vehicles insured withcomprehensive coverage will be protected for flood damage,according to PCS.

PCS has not assigned a catastrophe serial number related to thegeneral flooding that is being reported in areas of Iowa, Missouriand Illinois.