Fewer than one in 10 homeowners insurance customers in New England and the Mid-Atlantic states carried flood insurance before Hurricane Irene, according to a new J.D. Power and Associates ratings report.

Hurricane Katrina made disaster history in 2005, but where it hit, too few residents are covered for flood.

Only about 25 percent of homeowners insurance policy holders in the Gulf of Mexico region reported carrying flood insurance prior to Hurricane Irene, J.D. Power reported in its 11th Customer Satisfaction with Homeowners Insurance.

Both are relatively low proportions, especially in the storm-prone Gulf Area, considering the recent frequency and power of hurricanes and other severe weather events.

And now, with hurricane season in full throttle, many homeowners may not be able to obtain coverage before another storm hits. There can be a 30-day waiting period from the time an insurance policy is purchased to when it actually goes into effect.

Still, that's no reason to delay obtaining coverage if you are in any area with a potential for flooding. Flood insurance is mandated in certain high risk areas, but as Hurricane Irene proved, even those not required to have the coverage were at risk for flooding.

Rather than wind and rain, a hurricane's so-called "storm surge," is often the greatest threat to life and property from a hurricane, according to the National Weather Service.

A storm surge is an abnormal rise in water levels generated by gale force storm winds. As witnessed during Hurricane Irene and other storms, storm surges cause flooding.

"Unfortunately, the majority of homeowners affected by Hurricane Irene were not covered for flood damage, and many may find their claims denied," said Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates.

Bowler said it is key for homeowners to ensure that their insurance coverage is sufficient before a disaster strikes. While many homeowners may not give much thought to their insurance under normal circumstances, the moment they have to file a claim, the value becomes crystal clear.

J.D. Power said customers who have filed a claim tend to be more knowledgeable about their policies -- and also more satisfied -- than those who haven't had a claims experience.

The study measures customer satisfaction with homeowners insurance companies by examining five key factors: policy offerings; price; billing and payment; interaction; and claims.

Overall satisfaction with homeowners insurance companies averages 769 (out of 1,000) in 2011 -- improving by 19 points from 2010. Despite the one year gain, satisfaction with homeowners insurance companies still remains below levels achieved in 2009.

Homeowners insurance customers who bundle more than one policy with their insurer were notably more satisfied with price than customers who do not bundle policies. Insurers typically give a discount with bundling.

In addition to so many homeowners in disaster prone areas lacking insurance, J.D. Power also found that about 16 percent of homeowners insurance policy holders carry less coverage than would be required to fully rebuild their home in the event of a total loss.

Among these policyholders, satisfaction averages 73 -- more than 40 points lower than among policyholders who say they have sufficient coverage.

J.D. Power and Associates offers the following tips:

• If your insurance company doesn't offer one, request an annual policy review. One of the most important topics to cover during the review is whether your policy limit is adequate to cover the full replacement cost value of your home.

Make sure you inquire about additional policy lines, such as flood insurance, available through your agent, but underwritten by the National Flood Insurance Program (NFIP).

NFIP says the average policy costs $600 a year and you can be reimbursed for the cost of efforts you take to protect your home.

• Ask your insurance company about any discounts they offer, such as those for multiple policies, having smoke or fire alarms, or for being a long-time customer.

• It's convenient to access billing and payment information through your insurer's website, but don't rely solely on the website to communicate with your insurance company. A more satisfying experience comes from talking directly to an agent or representative. They likely can answer your questions quickly and efficiently, saving time you might spend hunting for answers on a website.

Published: September 15, 2011

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A journalist for 35-years, Broderick Perkins parlayed an old-school daily newspaper career into a digital news service offering editorial content and consulting services. Perkins' San Jose, CA-based DeadlineNews Group includes the flagship news site, DeadlineNews.Com, offering real estate, personal finance and consumer journalism, and a backshop, the Deadline Newsroom.