HOMEOWNERS UNSURE HOW TO PROTECT PROPERTY FROM WILDFIRES

New study from NAMIC and The Ohio State University finds fire remediation efforts lacking in vulnerable states

INDIANAPOLIS, Nov. 22, 2022 /PRNewswire/ -- Nearly two-thirds of homeowners in fire-risk states are worried about wildfires harming them and their property; yet few are taking action to protect their homes, and fewer still are confident in their insurance coverage. That's according to a recent survey by the National Association of Mutual Insurance Companies. Among the highlights from the survey of nearly 600 homeowners in 10 states with an increased risk of fire:

• 59% of homeowners believe wildfires pose a moderate to extreme risk for them and their property,
• 63% fear their home will be damaged in the next three years due to extreme weather or natural disaster,
• Only 19% are certain they have enough insurance to cover any damage,
• When asked about fire prevention activities, 20% of respondents had not considered any of the activities, while an additional 13-15% had decided to not pursue these preventative actions, citing expense, belief that preventive steps would not offer protection, difficulty, and lack of knowledge as their top reasons for not taking action.

These findings are troubling given the increase in wildfire damage in recent years. According to National Interagency Fire Center statistics, as of Nov. 18, 2022, more than 62,000 fires have already burned more than 7.3 million acres in the U.S., more than the 10-year average of 51,000 fires and the average acreage of just under 7 million.

"As we come to the end of another devastating year of wildfires, it's more imperative than ever that homeowners consider actions to reduce their fire risks, including reviewing their insurance needs," said Neil Alldredge, NAMIC President & CEO. "Homeowners don't have to wait for government or others, they can act to protect themselves. There are many inexpensive fire mitigation activities that can be done over a weekend that will help reduce losses and lessen the potential for a crippling financial impact on their family."

NAMIC commissioned The Risk Institute at The Ohio State University Max M. Fisher College of Business to conduct the survey to better understand homeowners' perceptions of extreme weather, fire risk, and fire remediation efforts. The states identified as being at increased risk for wildfires included Arizona, California, Colorado, Florida, New Mexico, North Carolina, Oklahoma, Oregon, South Carolina, and Washington.

NAMIC encourages homeowners to consider the weekend wildfire preparedness activities outlined by the Insurance Institute for Business and Home Safety.

• Create defensible space – To maintain a defensible space, homeowners should remove dead vegetation, trim branches overhanging roof, and remove combustible materials within 5 feet of the home. Only 22% of survey respondents say they have created a 5-foot vegetation barrier around their homes, with Arizona homeowners being the most likely to have done it (44%), and South Carolina being the least likely to have considered it (65%).
• Clear roof and gutters – Homeowners don't have to completely replace their roofs to better protect from wildfires. Simply removing debris such as leaves and pine needles that can be easily ignited by wind-blown embers can make a difference.
• Maintain decks – Homeowners should remove debris and vegetation from decks and move patio furniture, umbrella, and other combustibles inside. Wood should not be stored on or underneath decks. 42% haven't considered using ignition-resistant lawn furniture made with aluminum instead of wood.
• Assess wildfire risks – Homeowners need to review their insurance policies to make sure they're covered in the event of a wildfire. In addition, they should create a home inventory to assist in the claims process. The survey found that only 25% reevaluate their insurance policies annually.

In conducting the survey, The Risk Institute recruited a sample of 1,102 homeowners from Aug.11-17,2022, from Amazon MTurk using Cloud Research, with a subset sample of 592 from the 10 fire-risk states listed. The margin of error for the state subset is +/-4 percent. Homeowners ranged in age from 20 to 70 and were equally split between genders.

The National Association of Mutual Insurance Companies consists of more than 1,500 member companies, including seven of the top 10 property/casualty insurers in the United States. The association supports local and regional mutual insurance companies on main streets across America as well as many of the country's largest national insurers. NAMIC member companies write $357 billion in annual premiums and represent 69% of homeowners, 56% of automobile, and 31% of the business insurance markets.

The Risk Institute at The Ohio State University Max M. Fisher College of Business is a consortium of forward-thinking companies and academics with the mission of advancing enterprise risk management through cross-industry collaboration, academic research, thought leadership and talent development.

Media Contact: 
Lauren Anderson
317-450-3129
landerson@namic.org

Joe Arnold 
614-292-3380 
arnold.974@osu.edu 

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SOURCE National Association of Mutual Insurance Companies