Homeowners Confused About Insurance Coverage: Survey

May 14, 2013

Many homeowners do not understand what exposures are covered under their home insurance policy, according to a new consumer survey.

More than two in five Americans (41 percent) believe that a standard homeowner’s insurance policy protects against mold damage, according to new In.suranceQuotes.com survey

“This misconception could prove extremely costly,” said Laura Adams, senior insurance analyst, InsuranceQuotes.com. “Mold remediation can cost tens of thousands of dollars. It’s often not covered by homeowner’s insurance, especially if it was caused by neglected maintenance such as a leaky pipe.”

The survey also revealed that many homeowners are misinformed regarding personal belongings stolen from a car (73 percent aren’t aware that this type of theft is covered by homeowner’s insurance) and earthquake damage (51 percent don’t know that this is not covered by a standard homeowner’s insurance policy).

Two better understood aspects of homeowner’s insurance are fire damage (90 percent of Americans know that homeowner’s insurance covers this) and lawsuits from an injured visitor (72 percent know this is covered).

Just under one-quarter of homeowner’s insurance policyholders said that they chose their current provider primarily because of a recommendation from someone they trust (22 percent). A similar number (21 percent) said the most important factor was the service they received from their agent. Seventeen percent said their decision hinged on getting the lowest price. But only 1 percent of homeowners insurance purchasers said a radio or television commercial was the most important factor in their decision.

The survey was conducted by Princeton Survey Research Associates International (PSRAI). PSRAI obtained telephone interviews with a nationally representative sample of 1,003 adults living in the continental United States. Telephone interviews were conducted by landline (500) and cell phone (503, including 229 without a landline phone). Interviews were done in English by Princeton Data Source from April 4-7, 2013. Statistical results are weighted to correct known demographic discrepancies. The margin of sampling error for the complete set of weighted data is plus or minus 3.7 percentage points.

Source: InsuranceQuotes.com

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Latest Comments

  • May 26, 2015 at 10:25 am
    Agent says:
    I can't believe you are in the insurance industry Daviv. Read your Tenants policy. A structure owned by someone else does not include your Personal Property.
  • May 22, 2015 at 5:36 pm
    Daviv Bannister says:
    I live in an apartment block could you please advise me whether or not external doors and windows are covered by my contents insurance policy.
  • May 22, 2013 at 12:22 am
    MrInsBrokerSF says:
    To paraphrase the old Family Feud's dearly departed host Richard Dawson - "Survey says" 1> Most State Insurance Depts. don't have the guts or brains to require a simple fac... read more
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