Few Homes Secured From Natural Disaster

Only one-fourth of the nation's homeowners have made structural changes to their homes to make them more secure against a natural disaster, according to a survey from an insurance agent's group.

A survey released today by Trusted Choice, the Alexandria, Va.-based Independent Insurance Agents & Brokers of America's branding initiative, and the IIABA found that 28 percent of homeowners made changes to their homes since 2003 that would make the homes more secure in the wake of a natural disaster. Additionally, only 31 percent in the South made changes, and in the Gulf Coast region the number was 37 percent.

The association said it was surprised by the figures.

“It's surprising that so few homeowners in catastrophe-prone areas have upgraded their homes to better withstand disasters,” said Robert Wilkey, assistant vice president of catastrophe claims management at Hartford, Conn.-based insurer The Hartford in an e-mail statement in response to the survey. “People spend a lot of time and money on making improvements and creating curb appeal, but things like storm shutters and a secure roof are what preserve a home and keep families and their possessions safe.”

On the issue of pricing, 62 percent of homeowners said pricing has stayed the same in the past year, while 20 percent reported increases. Six percent said they experienced decreases.

Of those who received an increase, 40 percent said they had an increase of up to 10 percent, while 22 percent saw increases between 11 percent and 25 percent. Thirteen percent said they experienced increases of more than 25 percent.

The survey found that 26 million homeowners–35 percent of all homeowners–experienced a rate increase in the past 48 months.

During that same time period, close to three million households lost their homeowners coverage–about 4 percent of the 76.7 million households in the United States that own their own homes. Most of the losses occurred in the South (2.1 million households).

More than half said they were able to find other coverage, primarily through another insurance company.

“It is significant to note that the increase in coverage cancellations from our 2003 study was small; however, the number of households losing coverage during the four-year period is more than the resident population of Mississippi,” said Robert A. Rusbuldt, IIABA chief executive officer. “It is important to keep in mind that while some consumers are able to find new coverage, it is often more expensive and provides less protection.”

The survey was conducted in May by Fort Washington, Pa.-based TRC, an independent survey firm. It was a telephone survey of 727 people and has an average margin of error of plus/minus 3.7 percent.

(This story was updated at 4:49 p.m.)