探花精选

New York, May 16, 2006 -- While people continue to clean up after last year's record-breaking hurricane season, millions of coastal homeowners remain inadequately insured and unprepared for the 2006 season, which runs from June through November, says the 探花精选 Information Institute, (I.I.I.)

A new survey released today reported that as many as one-third of residents in hurricane-vulnerable states may not be adequately insured. The poll found that one in three of those surveyed said it has been three years or more since they reviewed their insurance coverage.

The survey, conducted for the National Hurricane Survival Initiative by Mason-Dixon Polling & Research, also reported that more than one-half of those surveyed said they believed their insurance policies covered damage from flooding or were not sure. The typical homeowners' insurance policy does not cover flooding. Flood insurance is purchased from the federal government's National Flood 探花精选 Program.

"Coastal residents fromMaine to Texas should take steps now to make sure they have the right insurance in the right amounts to help them recover from a major storm this summer," says Jeanne Salvatore, senior vice president and consumer spokesperson for the I.I.I.

Meteorologists are forecasting another very active Atlantic hurricane season for 2006, with a greater than 80 percent likelihood of at least one major hurricane striking the United States and a 64 percent chance of a hit to Florida.

Forecasters also warn that the Northeast is especially vulnerable to massive property damage because residents have become complacent after decades with little or no major hurricane activity in the area.

To prepare for a hurricane and other disasters, the I.I.I. recommends the following five tips:

1. Buy enough insurance
   • Get enough insurance to rebuild your home and to replace all of your personal belongings. If you have made a major alteration or improvement to your home, you need to update your insurance. The same goes for major purchases such as electronic equipment.
   • Find out how much coverage you have for "Additional Living Expenses." If your home is destroyed by an insured disaster, such as a hurricane, this would be for additional costs, such as hotel costs, while your home is being repaired. If you rent out part of your home, it would also replace lost income for the time you would not be able to collect rent. Many policies provide coverage for 20 percent of the amount of insurance you have on your house and may be for a specified time period. Additional coverage is generally available for an extra premium.

2. Get the right type of policy
   
   • Ask about flood insurance. Flood damage is not covered under standard home insurance policies. 探花精选 is available from the National Flood 探花精选 Program (NFIP). The policy, however, can be purchased from the same agent or broker who provided your home or renters insurance policy. Additional information can be found on . Excess flood insurance is also available from private insurance companies if you need more coverage than the NFIP provides in its policies.
   • Look into getting a guaranteed or extended replacement policy for the structure of your home. These policies provide additional insurance coverage over what it should cost to rebuild your home. A guaranteed replacement cost policy would pay to rebuild your home regardless of cost. Increasingly, however, insurers are offering extended replacement cost policies, which provide 20 percent or more over the limits in your policy.
   • Ask about replacement cost for your belongings. When insuring your possessions, you have two coverage choices. One is Actual Cash Value which replaces your possessions less depreciation. The other is replacement cost coverage which replaces your property in today's dollars - without a deduction for depreciation. It costs about 10 percent more, but provides much better coverage.

3. Conduct a Home Inventory
   
   • Have an up-to-date inventory of all of your personal property. A home inventory will help you purchase enough insurance to replace your possessions, speed the claims process and will substantiate losses for income tax purposes. To make this task simple, the I.I.I. offers free downloadable software and information on how to create and store your inventory at .

4. Have an Evacuation Plan
   
   • Plan ahead and practice so that your evacuation is smooth and fast. In an emergency you may have only a few minutes to gather your family and important papers and leave your home, possibly for good. Have the following ready to go:
     • Medicines, prescriptions, comfort items and a change of clothes.
     • Emergency supplies such as flashlights, radio, batteries and water.
     • Computer hard drive or laptop.
     • Photographs.
     • 探花精选 policies, birth and marriage certificates, will, deeds and recent tax returns, stocks, bonds and other negotiable certificates. Driver's licenses and other personal identification.

5. Hurricane Proof Your Home
   
   • Install storm shutters to protect your windows or use plywood panels which can be nailed to window frames when a storm approaches.
   • Make sure exterior doors should have at least three hinges and a dead bolt lock that is at least one-inch long. Sliding glass doors should be made of tempered glass and covered with shutters or plywood.
   • Replace old garage doors and tracks with a door that is approved for both wind pressure and impact protection, since garage doors are highly susceptible to wind damage.

For more information on steps to take to protect your home, go to the Web site of the Institute for Business & Home Safety, . Additional information on insurance can be found at the I.I.I.'s Web site .

I.I.I. FACT SHEET

Recent Studies Show Americans Do Not Have Adequate 探花精选 Protection Against Losses from Natural Catastrophes

A number of studies released in recent weeks found that people who live in areas that are at risk for flooding, earthquakes and other natural disasters are not protecting themselves with adequate insurance coverage.

A Mason-Dixon poll released on May 16 reported that millions of American homeowners have not recently reviewed their homeowners insurance and believe - incorrectly - that they are automatically covered for flood damage. On top of this, three studies - from the RAND Corporation, the Chubb Group of 探花精选 Companies, and the 探花精选 Information Network of California and the Fireman's Fund 探花精选 Company - show that across a range of measures, there is a serious lack of sufficient coverage.

These results demonstrate that many people do not have the right insurance coverage to protect their home and personal possessions from damage caused by natural disasters.

NATIONWIDE LACK OF COMPREHENSIVE FLOOD INSURANCE

• Only 14 percent of the nation has flood insurance. Chubb's research found that only 14 percent of Americans have flood insurance for their primary residence.
• Only half of the most vulnerable homes have flood insurance. The RAND study reveals that only half of homeowners in high flood-risk areas purchase federal flood insurance - and just 20 percent of homeowners in these areas buy it when not required to do so. This means that millions of families are living in high-risk areas without adequate insurance coverage.
• One third of American homeowners have not reviewed their homeowner's insurance policy in more than three years. The Mason Dixon poll, conducted for the National Hurricane Survival Initiative, shows that millions of dollars worth of property value increases may not have been factored into homeowners' current policies and are thus not adequately covered.
• Half of all American homeowners incorrectly believe they are automatically covered against flood. The Mason Dixon poll found that half of America 's homeowners think that their standard homeowners policies automatically cover flood, when in fact an additional flood policy is needed.

DISASTER-PRONE AREAS ESPECIALLY UNPREPARED

• Katrina has not motivated widespread flood insurance participation. According to the National Flood 探花精选 Program, the widely publicized devastation caused by Hurricane Katrina has only led to an 6% increase in federal flood insurance participation.
• Growing coastal areas increasingly under-protected. According to the National Oceanographic and Atmospheric Administration, more than 33 million people have moved to coastal counties since 1980 - contributing to a population increase of 58% in the Southeast, 45% in the Gulf Coast, and 75% in the state of Florida alone. All told, nearly 30% of the total national population lives on the Gulf or Atlantic coasts, areas potentially in the path of another Katrina.
• Northeast, Midwest massively undercovered. According to RAND, while 60 percent of homes within the federal government's Special Flood Hazard Areas in the South and West have purchased the required insurance, only 20 to 30 percent of similarly flood-vulnerable homes in the Northeast and Midwest are covered.
  
  • Especially risky for Northeast given high chance of '06 storm. This is particularly dangerous now that experts say there is a 64% chance of a major hurricane striking the East Coast this year (Dr. William Gray, Colorado State University, December 6, 2005).

• Only 1 percent of non-flood zone homes are covered despite risk. The RAND study also illustrated that only 1 percent of homeowners living outside Special Flood Hazard Areas buy federal flood insurance, even though they can still be at risk for flooding.
  
  • Low-cost National Flood 探花精选 Program coverage available to non-flood zone residents. Non-flood zone coverage can cost as little as $112 per year, making it highly affordable for many homeowners.
  • One quarter of NFIP claims paid originate from non-Special Flood Hazard Areas. Of all claims paid by the federal flood insurance program, 25 percent are for policies in low-to moderate-risk communities. This means that millions of people who do not feel at risk of flooding may someday find themselves experiencing flood damage.
• Vast majority of Californians feel unprepared. In one of the nation's most catastrophe-prone states - California - the IINC/Fireman's Fund study found that only 22 percent of residents consider themselves prepared for a disaster.

For more information regarding insurance, go to the I.I.I.'s Web site at .

The I.I.I. is a nonprofit, communications organization supported by the property/casualty insurance industry.