A couple of quick questions on the validity of other factors which should have been taken into account before writing that headline.
1) Is the reason for the disparity in flood insurance purchase due to the disparity in mortgages? Lenders require the purchase of flood insurance for property in a flood zone. Baby boomers whose homes are paid off may not purchase flood insurance because they’re not required to do so.
2) Is the reason for the disparity in flood insurance purchase due to the disparity in neighborhoods? Baby boomers may be able to afford to buy homes outside of flood zones, while Millennials may need the “flood zone discount” to be able to afford the 20% down payment to purchase their homes.
2) Unknown – location of survey participants was included in the weighted results, and the results do cover states in all four geographic reason, but how much the geographic location actually played into the weighted results compared to the the other weighted factors doesn’t seem to be listed. It would’ve been really helpful to see a table that broke out the results by geographic region to better assess how this variable played into having or not having flood coverage.
I also wonder if the numbers are affected by the fact that we have seen more drastic numbers of storms and damage from storms with flooding than we did during the baby boomers youth. Boomers may not feel like flood is that big a risk to them whereas millennials do as they have seen more destruction and damage.
We’ve experienced several situations where a younger insurance buyer, and especially first time home owner, will want to check all the boxes when it comes to coverage. On the other hand, our older clients (many retirees) give us that song and dance on “I’ve lived here for years and never seen a flood, so I’m not buying it anymore” or “I’ve paid for insurance for 40 years, never had a claim so I want to remove coverage” (example – personal property replacement cost).
A lot of younger home buyers truly do not understand the additional coverage that will be added on to an HO3 and have infinite questions about what is covered and what is not. I think the fact that mortgage companies and banks are usually persistent on purchasing flood coverage even though the home doesn’t stand in a high risk flood zone. A geographical area that has several houses just outside an AE or VE zone are seeing an increasing number of Preferred Risk Policies, due to persistence from mortgage companies. Many of these homeowners are only purchasing it to meet mortgage requirements and basically refuse contents coverage all together.
A couple of quick questions on the validity of other factors which should have been taken into account before writing that headline.
1) Is the reason for the disparity in flood insurance purchase due to the disparity in mortgages? Lenders require the purchase of flood insurance for property in a flood zone. Baby boomers whose homes are paid off may not purchase flood insurance because they’re not required to do so.
2) Is the reason for the disparity in flood insurance purchase due to the disparity in neighborhoods? Baby boomers may be able to afford to buy homes outside of flood zones, while Millennials may need the “flood zone discount” to be able to afford the 20% down payment to purchase their homes.
Valid questions, Craig.
1) This seems unlikely. See Table 2 of the survey
2) Unknown – location of survey participants was included in the weighted results, and the results do cover states in all four geographic reason, but how much the geographic location actually played into the weighted results compared to the the other weighted factors doesn’t seem to be listed. It would’ve been really helpful to see a table that broke out the results by geographic region to better assess how this variable played into having or not having flood coverage.
Agent – care to explain why you down-voted my reply?
I don’t see a down-vote. Care to explain why you’re hallucinating? ;)
Simple – the downvote got removed after I posted and before your reply.
craig, Millennials are three times lses likely to even own a home.
Understanding probability within a data-set isn’t your forte, is it?
I also wonder if the numbers are affected by the fact that we have seen more drastic numbers of storms and damage from storms with flooding than we did during the baby boomers youth. Boomers may not feel like flood is that big a risk to them whereas millennials do as they have seen more destruction and damage.
Along with the fact that Millenials have been brain-washed to be in constant terror that we only have 12 years left because of the Scary Monster. . .
We’ve experienced several situations where a younger insurance buyer, and especially first time home owner, will want to check all the boxes when it comes to coverage. On the other hand, our older clients (many retirees) give us that song and dance on “I’ve lived here for years and never seen a flood, so I’m not buying it anymore” or “I’ve paid for insurance for 40 years, never had a claim so I want to remove coverage” (example – personal property replacement cost).
A lot of younger home buyers truly do not understand the additional coverage that will be added on to an HO3 and have infinite questions about what is covered and what is not. I think the fact that mortgage companies and banks are usually persistent on purchasing flood coverage even though the home doesn’t stand in a high risk flood zone. A geographical area that has several houses just outside an AE or VE zone are seeing an increasing number of Preferred Risk Policies, due to persistence from mortgage companies. Many of these homeowners are only purchasing it to meet mortgage requirements and basically refuse contents coverage all together.
Hmm, and they say humans don’t evolve…