I spent a good chunk of the day in front of a video camera,answering about 80 questions related to homeowners insurance for anew consumer-oriented, how-to Web site set to launch next month.One thing I learned from the experience is how complicatedinsurance really is, especially for the average person, who isbasically clueless about the industry and their own coverage.

I also realized that no one teaches people about this stuff inschool. (Which is why this new Web site is such a good idea. I cantell you more about it when it formally launches).

When I went to school, back when dinosaurs still roamed theEarth, nobody taught me what auto or homeowners insurance was. Orwhy I needed it. Or what it covered (and didn't cover). Or how togo about filing a claim. Or what to do if an insurer rejects yourclaim, or won't renew your policy.

No one explained to me what the difference is between anindependent agent and a captive agent. Between property andcasualty coverage. Between endorsements and deductibles. Betweenstandard liability and umbrella liability coverage.

No one explained to me when I grew up in a rented apartment whyI might need renter's insurance (my family had it!), or thedifference between standard homeowners and condo and co-opcoverage. Or why a hurricane is covered but not a flood. Or why mycouch might be covered, but not my baseball card collection.

One of the key questions I was asked during the interview wasabout the most common mistakes I see people make when buyinginsurance. My answer was that most people don't have the foggiestidea what they are getting into. Hardly anyone reads theirpolicies, and if they do, they don't understand most of it. Mostwould fail a simple test of what is and is not covered.

No wonder most of the general population believes the worst,assuming the industry is out to cheat them. Uninformed people areeasily confused, often frustrated, and inevitably angry. And thatanger plays itself out in state legislatures and insurancedepartments, as well as in Congress.

The Insurance Information Institute does a fine job being therewhen people need answers to basic questions. (Indeed, their capablepeople might have been better suited to pass along the Insurance101 information I was asked to provide today. ) But the industrycannot afford to wait for people to come to them with questions. Bythen, it's often too late.

Instead, insurers should launch an initiative (perhapscoordinated by the Institute) to make a basic lecture on insurancepart of every high school kid's standard education. (In fact, itwouldn't hurt to teach them about credit cards, mortgages, taxesand other unpleasant facts of adult life, either.) Perhaps then thenext generation will be at least somewhat more informed, and betterprepared, to deal with the exposures they will face.

What do you folks think?