Most Americans favor public policies that could help to mitigate the damage caused by catastrophic natural disasters before they happen, but many Americans remain unprepared for a disaster in their own homes and communities, according to a recent study from the Insurance Research Council entitled Public Attitude Monitor 2006, Issue 1, Natural Disasters.

Nine out of 10 Americans support the adoption and enforcement of building codes to make new homes stronger and safer. Two-thirds (67 percent) support building codes even when they would add six percent to the cost of a new home.

Other public policies relating to natural disaster loss mitigation now being discussed in state legislatures around the country and in Congress also enjoy strong support, according to the survey. A large majority (70 percent) of those surveyed favored the adoption of laws and regulations restricting the construction of new homes in disaster-prone areas, including coastal areas, and 82 percent favored government action and public spending to preserve and rebuild coastal wetlands that act as buffers against hurricanes.

The contrast between public views on the role of government in mitigating damage from natural disasters before they happen and personal actions to minimize the personal disruption and financial loss following a natural disaster is particularly stark when it comes to insurance, according to the IRC. A large majority (80 percent) of those surveyed favored laws that would require people who live in disaster-prone areas to purchase insurance covering the particular risk involved. However, according to the survey, many homeowners have not purchased insurance to cover disaster risks, even though they indicate they may be at risk for those disasters.

For example, of those who report living in an area where a flood could occur or has occurred in the past (not including those also at risk of hurricane), only 20 percent said they have purchased flood insurance coverage. Of those who report living in an area at risk of having a severe earthquake, 42 percent say they have purchased earthquake insurance coverage.

While the survey found strong support for government policies aimed at mitigating risk before a natural disaster occurs, it found strong opposition to programs and policies that subsidize the cost of insurance for people in high-risk areas. Asked to consider the National Flood Insurance Program as an example, almost six in ten (59 percent) indicated that it is unfair to use taxpayer dollars to subsidize the cost of insurance in high-risk areas. A similar percentage indicated that it is unfair to require policyholders in non-coastal areas of a state to subsidize the cost of insurance for wind damage in coastal areas. Two-thirds (67 percent) also

disagreed with the idea of using taxpayer dollars to subsidize the cost of insurance in order to encourage new construction in coastal areas.

For more detailed information on the study's methodology and findings, contact Elizabeth Sprinkel by e-mail at irc@cpcuiia.org or visit IRC's web site at www.ircweb.org.

Special Reports /

Public Supports CAT Preparation; Ill-Prepared Itself

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