Flood insurance awareness grows as homeowners accept higher costs – Neptune Flood

Fewer homeowners resist premium rises, signaling greater recognition of risk

Flood insurance awareness grows as homeowners accept higher costs – Neptune Flood

Catastrophe & Flood

By Kenneth Araullo

Neptune Flood has released the findings of its fifth annual Neptune Consumer Survey of Flood Awareness, conducted in partnership with the University of South Florida St. Petersburg Customer Experience Lab.

The survey provides insights into evolving homeowner perspectives on flood risk, insurance adoption, and coverage preferences. 

The 2024 results indicate a growing awareness of flood risks, with more homeowners recognizing the impact of climate change on their properties. The study also identifies shifting attitudes toward insurance costs, policy preferences, and regional variations in insurance provider selection. 

The survey found that 77% of respondents believe their flood risk is increasing, up from 63.9% in 2023. The shift follows a year of severe weather events, including five US hurricane landfalls in 2024.

Younger homeowners, particularly those aged 18-34, showed the highest levels of concern, reflecting a generational shift in attitudes toward climate resilience and risk mitigation. 

The willingness to invest in flood insurance has also increased. Only 2.2% of respondents indicated they would be unwilling to pay higher premiums, a decline from 6.6% in 2023. This suggests a greater acceptance of flood insurance as an essential component of homeownership. 

Despite increased awareness, cost remains a primary obstacle to flood insurance adoption. Nearly 80% of respondents said the perceived expense of flood insurance deterred them from purchasing homes in high-risk areas.

Additionally, nearly 70% of non-policyholders cited a lack of perceived risk as their reason for not obtaining coverage. 

Regional preferences for flood insurance providers also varied. Midwestern respondents expressed a preference for private insurers, citing higher coverage limits and greater flexibility. In contrast, homeowners in the Mid-Atlantic region leaned toward the National Flood Insurance Program (NFIP), emphasizing trust and stability as key factors in their decision-making. 

Demand for comprehensive policy features

Homeowners showed a strong preference for policies offering additional coverage options. Nearly 90% of respondents indicated a willingness to purchase flood insurance policies that include temporary living expenses and replacement cost coverage for home contents. 

Trevor Burgess (pictured above), president and CEO of Neptune Flood, noted that the findings highlight both opportunities and challenges for the industry.

“By leveraging data-driven insights, Neptune can continue to innovate and deliver policies that empower homeowners to protect their properties and families against an evolving risk landscape,” he said.

Philip J. Trocchia, professor at the University of South Florida St. Petersburg Customer Experience Lab, observed that the year-over-year trends indicate a growing awareness of flood risks.

“This heightened awareness, coupled with Neptune’s innovative approach to insurance, presents a unique opportunity to address the gaps in coverage and meet the increasing demand for customized flood protection,” Trocchia said.

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