Be Prepared if Disaster Strikes
Illinois Department of Insurance reminds
homeowners to re-evaluate insurance risks
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[April 20, 2017]
SPRINGFIELD – The
Illinois Department of Insurance (DOI) today joined the National
Association of Insurance Commissioners (NAIC) to urge consumers to
consider their insurance risks and understand what is covered in
their current policies. With the threat of natural disasters on the
rise it is important for homeowners to be prepared; however fewer
than 22% of homeowners view changing weather patterns or natural
disasters as an important factor when updating their homeowners
insurance policy, according to a survey from the NAIC.
More than 800 emergency or disaster declarations were made in the
United States from 2005-2015, resulting in an average of $24 billion
in annual insured losses due to natural catastrophes. However, the
NAIC survey revealed 56% of homeowners have not reviewed their
insurance policies in more than a year and 14 % are unsure when, if
ever, they last reviewed their policies. Research also indicates
nearly half of homeowners (44%) have a home inventory. But of those
who have an inventory, more than 40% have not updated it in more
than a year.
“As Illinois residents, we’ve experienced significant losses from
severe weather over the years,” said Illinois Department of
Insurance Director Jennifer Hammer. “Consumers need to consider the
risks disasters pose within our region and how disasters can impact
their home insurance needs.”
Generational Differences
NAIC’s survey also shed light on generational differences to
approaching home insurance. According to the survey, Millennials
(19%) are significantly more likely than Gen Xers (10%) and Baby
Boomers (8%) to consider changing weather patterns when reviewing
their homeowners insurance. Compared to Gen Xers and Baby Boomers,
Millennials are more likely to have reviewed or updated their
insurance policy within the last five years. Millennials are also
more likely to have a home inventory and to have reviewed or revised
it within the last five years.
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Before the Storm
Consumers should re-evaluate their risk profile at least once a year
to ensure their homeowners policy provides the protection they need.
Questions to consider include:
-
Am I now at risk?
-
Are tornadoes now
a threat?
-
Do I need a flood
insurance policy or sewer backup coverage?
-
What has changed
in my home?
-
Did the number of
people (and belongings) increase or decrease?
-
Have I made any
major purchases?
-
Have I updated my
home with a kitchen renovation, new security system or other
improvements?
-
Should I be
looking at different coverage?
-
Can I save money
by bundling my home and auto insurance?
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New Disaster Prep Guides from NAIC’s Insure U can
help consumers determine the best course of action before, during
and after a disaster strikes. The free guides include information
and tips for tornadoes, hurricanes, floods, earthquakes and
wildfires.
Disaster Prep Guides are available at insureuonline.org. Consumers
interested in insurance information specific to Illinois can contact
the Illinois Department of Insurance at http://insurance.illinois.gov/
or 866-445-5364.
[Illinois Department of Insurance] |