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

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

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

The Institute said the proportion of Americans with a flood insurance policy from the National Flood Insurance Program is relatively unchanged from a year ago, when 14 percent said they have flood coverage.

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

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

The I.I.I. said that according to Federal Emergency Management Agency data, floods–including inland flooding, flash floods and seasonal 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 flood insurance rose by 10 points–from 10 percent in 2007 to 20 percent in 2008.

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

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

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

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

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

PCS, a unit of Jersey City, N.J.-based Insurance Services Office, said by e-mail that for the most part, flood damage to structures is not covered except through the NFIP, but the company is aware of some commercial structures that are protected to some degree by flood coverage provided by private insurance companies.

Examples of these types of properties include universities and hospitals–but that is not to say all such occupancies have insurance coverage, PCS explained. Vehicles insured with comprehensive coverage will be protected for flood damage, according to PCS.

PCS has not assigned a catastrophe serial number related to the general flooding that is being reported in areas of Iowa, Missouri and Illinois.

Special Reports /

Private Insurer Loss From Floods Seen As Minimal

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