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 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
  • May 22, 2013 at 12:08 am
    MrInsBrokerSF says:
    There are many inequalities in services and professions. What a person's time is worth is subjective: the market says you're worth as much as a person willingly pays you, the ... read more
  • May 20, 2013 at 3:53 pm
    ESAD says:
    Lawyers and accountants are paid by the hour (or quarter hour or in whatever interval they want) which tends to expand the time needed to do the work, and most docs are paid b... read more
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