Businesses and homeowners on the US Gulf Coast are underinsured against floods and hurricanes, the New York-based Insurance Information Institute says. Many are still recovering from last year’s devastation and remain at risk this year.

The institute’s latest survey shows a frightening lack of understanding about insurance, even by current policyholders. More than half of those surveyed believed a standard home insurance policy protected against flood. Generally it doesn’t, and most flood cover is only available through the Federal Government’s National Flood Insurance Program.

Tips for homeowners before the June to November season include getting enough insurance to rebuild their residence and replace all personal belongings. They should also keep an up-to-date home inventory and have a practised evacuation plan in place.