“A large percentage of U.S. homeowners mistakenly believe that standard homeowners insurance protects them from a wide array of perils, according to new research by the National Association of Insurance Commissioners (NAIC), which hosted its summer conference this week in San Francisco. In fact, typical property and liability policies don’t cover home damage from floods, earthquakes, water line breaks, termites, mold, and several other perils, large and small. The NAIC survey found that 33 percent of U.S. heads of household, who own a home and have homeowners insurance, incorrectly believe flood damages would be covered by a standard homeowners or property and liability policy, despite extensive media coverage on Hurricane Katrina victims whose claims were denied because they lacked flood insurance.”
Associated Press, Insurance Journal 6/05/07