Millennials Most Likely to Buy Flood Insurance
A recent survey found that millennials are more likely than their baby boomer and Generation X counterparts to obtain flood insurance. The survey, conducted by the National Association of Insurance Commissioners (NAIC), had several key findings about those within the Millennial age group (those born between 1981 and 1996), mainly that they are the group most likely to purchase flood insurance:
- Millennials are nearly three times more likely to have purchased flood insurance than their Baby Boomer (those born between 1944 and 1964) counterparts.
- Millennials are more likely than their Gen X (those born between 1965 and 1980) counterparts to purchase flood insurance (25% vs. 16%).
- Millennials are more likely to agree/strongly agree that purchasing a flood policy is a good idea (57% vs. 41% for Gen X vs. 24% for Baby Boomers).
Across all demographic groups, the survey found that 41% of respondents agree or strongly agree that flood insurance is a “good idea.” Despite this, only 17% of those responding said that they have purchased flood insurance. Data from the Federal Emergency Management Agency (FEMA) estimates that only about 3% of homeowners have flood insurance.
Some of the difference between the 17 percent saying they had flood insurance and the 3 percent of the population that actually does may be attributable to a common misunderstanding. “This disparity perhaps reflects the common, though incorrect, assumption that homeowners’ insurance covers flooding,” commented NAIC president and Maine Bureau of Insurance superintendent Eric Cioppa.