SAN FRANCISCO, June 5 (UPI) -- Large numbers of U.S. homeowners wrongly believe standard insurance policies protect them from flood and other perils, an industry survey found.
Thirty-three percent of U.S. homeowners incorrectly think homeowners insurance covers flood damage, despite extensive news coverage of Hurricane Katrina victims whose claims were denied because they lacked flood insurance, the National Association of Insurance Commissioners survey found.
"Many homeowners learned the hard way that their insurance policies did not provide flood protection," association President and Alabama Insurance Commissioner Walter Bell said.
"As we enter the 2007 hurricane season, we strongly encourage consumers in flood-prone areas to check whether they are properly covered," he said.
Flood insurance is generally available from the National Flood Insurance Program and often is sold by homeowners-insurance agents, the association said.
Other homeowner misunderstandings include incorrect beliefs they are covered if a car, boat or motorcycle is stolen from or damaged on their property; if a water line or sewer line breaks on their property; if they experience earthquake, mold or termite damage; or if their pet is stolen from or injured on their property.
None of these are covered by homeowners insurance, the association said.
