THE BIG FINISH
WRAP YOUR HEAD AROUND THE MARKET'S LEADING INDICATORS
96
THE FLOOD INSURANCE FACTOR
A report by ValuePenguin.com found that only 7% of homeowners have a flood insurance policy, despite floods being
the most common natural disaster and 91% of homeowners having homeowners' insurance.
With the Atlantic hurricane season kicking into gear, the report reveals that nearly three-fourths of U.S. adults think
disasters such as hurricanes are getting worse and more than 40% report having suffered property damage related
to weather. Without proper insurance, many homeowners impacted by natural disasters such as flooding could suffer
economic hardships that could put their home at risk.
According to Frank Nothaft, Chief Economist for CoreLogic, "The disruption of a family's regular flow of income and
payments, as well as substantial loss in property value, can trigger mortgage default; especially if homeowners are
underinsured and cannot afford to rebuild."
STATES WITH HIGHEST HOMEOWNER FLOOD INSURANCE COVERAGE RATES
STATE OWNER-OCCUPIED
HOUSING UNITS
NFIP POLICIES
IN FORCE
SHARE OF HOMEOWNERS
WITH FLOOD INSURANCE
LOUISIANA 1,137,462 494,830 43.50%
FLORIDA 4,868,827 1,729,505 35.50%
HAWAII 264,622 60,343 22.80%
SOUTH CAROLINA 1,284,532 199,631 15.50%
NEW JERSEY 2,052,073 227,343 11.10%
DELAWARE 251,098 26,238 10.40%
TEXAS 5,851,046 598,815 10.20%
MISSISSIPPI 751,649 64,096 8.50%
RHODE ISLAND 247,291 13,820 5.60%
NORTH DAKOTA 197,083 10,661 5.40%
Source: ValuePenguin, "Average Cost of Flood Insurance by State"
