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92 92 INVESTMENT GOVERNMENT PROPERTY PRESERVATION TECH MANY HOMEOWNERS IN HIGH-RISK STATES "UNPREPARED" FOR HURRICANE SEASON Hurricane season could produce 16 to 18 storms nationwide this year, according to the National Oceanic and Atmospheric Administration's forecasts conducted last May. Considering the formation of two named storms this past week, some experts believe even more could materialize. is increases risk for millions of American homeowners in storm-prone areas, especially those who are not adequately prepared for the potential cost of hurricane damage. According to a survey conducted by ValuePenguin, "although many homeowners feel prepared for hurricane season, their actions tell another story." While 86% of homeowners in high-risk states say they feel prepared for this year's hurricane season, one-third haven't taken any steps to actually prepare against storm damage, the survey revealed. Researchers noted, a lack of understanding of the cost related to recovery and insurance effectiveness might be undercutting homeowners' preparedness. "While more than half of respondents say their homes could experience flood damage from a storm, 34% inaccurately believe that the damage would be covered by their home or renter's insurance policy." "While half of homeowners in high-risk areas do believe their homes will face flooding this year, a sizable demographic also believes that their regular policies cover flood damage," the survey showed. "is is untrue, but over one-third were unaware that they would need flood insurance to protect their homes and possessions from a storm surge or heavy rains." Further, the data show millennials are most likely to misunderstand their insurance policies: 38% believe (wrongly) that flood damage is covered by a home or renter's insurance plan. A regular homeowner's insurance policy, which mortgage lenders require their borrowers to purchase, does not cover flood damage. Additionally, in some states, claimants may have to pay a separate wind deductible before receiving reimbursement for storm damage. Generation Xers are the most likely to have taken steps to secure their property against storm damage. "More than 70% attested to taking some form of precautionary measures, including planning evacuations, gathering supplies, or reinforcing their homes. Conversely, only four in 10 baby boomers have made the same preparations." Across the board, many homeowners in high-risk areas weren't sure how much insurance they would need to be fully protected against hurricanes, either. More than 37% didn't know if they had enough coverage. Moreover, 42% incorrectly estimated the average cost of repairing hurricane damage to be under $10,000—significantly lower than the $42,000 average flood claim, according to the Federal Emergency Management Agency (FEMA). As in so many areas of life, the pandemic has complicated this hurricane season. More than one-quarter of homeowners in high-risk homes have been unable to prepare fully for this year's season because of the pandemic. Additionally, 30% of people expressed specific concerns about their ability to respond to any hurricanes, given the extent that the pandemic has affected their finances. Besides the financial ramifications of COVID-19, about 17% of Americans were also worried about how damage to their homes would combine with the necessity to stay at home. Another 15% were concerned about their ability to remain socially distant if they had to evacuate their homes for a hurricane shelter. Journal

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