26% of homeowners say they are financially unprepared for extreme weather events, new survey finds
New York (CNN) — The United States is in the midst of both hurricane and wildfire season. And US homeowners are likely keeping their fingers crossed that they and their families will be spared — not just physically, but also financially.
A quarter of US homeowners (26%) said they are financially unprepared for extreme weather events, according to Bankrate, which surveyed a nationally representative sampling of nearly 1,300 homeowners at the end of July. Those most likely to say they were unprepared lived in the South (29%), the West (28%) and the Northeast (25%). Those least likely to say so were in the Midwest (19%).
In response to a separate question in the survey, another 15% indicated they would have to go into debt to afford the deductible they would owe under their homeowner insurance policy if their property ever did get hit. That group is on top of the 7% who said they don’t even have homeowner insurance.
While the majority of homeowners surveyed did have insurance, they don’t necessarily know whether it is adequate to cover the kind of extreme weather their area now faces. More than two in five homeowners (43%) said they haven’t done anything since July 2019 to protect against extreme-weather property damage. Only 39% indicated that they have reviewed their home and auto insurance policies to ensure they had the right amount of coverage. And just 9% said they have invested in weather proofing strategies like getting hurricane shutters or investing in fire-resistant home materials.
“Extreme weather has changed the insurance landscape, and understanding your home insurance policy coverage is more critical now than ever,” said Shannon Martin, a Bankrate analyst who specializes in insurance. “Many insurance companies have reevaluated how they rate extreme weather, and some have changed the perils they are willing to cover. Reviewing your insurance policy to ensure you have proper coverage is the best first step.”
Pare that information with the realistic extreme weather threats facing your neighborhood today: “All homeowners should be aware of the natural hazards in their area and work to protect their homes accordingly, but this can look different depending on where you live and your financial situation,” Martin added. “Ultimately, every step toward protecting the investment you have made in your home, whether big or small, is a positive one.”
The-CNN-Wire
™ & © 2024 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.
