1 in 4 homeowners are taking risks with hurricane season

by Steve Randall22 Aug 2019

In the most active part of hurricane season, a survey has revealed a worrying amount of overconfidence among homeowners in high-risk areas.

The poll from ValuePenguin shows that 77% of homeowners in these areas believe they are ready for the worst, but half of these have not actually made any preparations, almost 1 in 4 of the 1,050 surveyed.

One reason for the lack of preparations may be that homeowners are underestimating the potential cost of hurricane and flood damage with more than half estimating $10,000. The actual average costs based on 2017 figures were $10,200 for wind and hail damage and $92,000 for flooding.

Another reason, is the current trend of lacking trust in experts with 4 in 10 respondents saying that the weather professionals "exaggerate the risk level of incoming hurricanes."

"If there is one key takeaway from the survey, it is that homeowners are substituting confidence for preparedness,” said Chris Moon, senior analyst at ValuePenguin who authored the report. “Clearly, a significant number of homeowners are underestimating the likelihood of being personally affected by a hurricane, a mistake that could have devastating consequences on their homes, their families and their finances."

The survey found that 45% of those in the most at-risk states for hurricanes aren’t sure how much insurance they need to be covered.

Insurance claims in recent hurricanes

 

Date

Average claim payment

Hurricane Michael

Oct 2018

$57,754

Hurricane Florence

Sep 2018

$47,138

Hurricane Maria

Sep 2017

$59,454

Hurricane Harvey

Sep 2017

$116,823

Hurricane Irma

Sep 2017

$48,095

Hurricane Matthew

Oct 2016

$39,455

Louisiana floods

Aug 2016

$91,507

Superstorm Sandy

Oct 2012

$66,517

Hurricane Irene

Aug 2011

$30,369

Hurricane Ike

Sep 2008

$57,866

Hurricane Katrina

Aug 2005

 

The full report can be viewed at https://www.valuepenguin.com/hurricane-prone-homeowners-substitute-confidence-for-preparedness


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