X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
A Policygenius survey reveals widespread misunderstandings about home insurance. (Photo: Shutterstock) Almost 30% of survey respondents thought home insurance costs hundreds, or even thousands, of dollars more than it actually does. (Photo: Shutterstock)

Almost half of the homeowners in the U.S. do not adequately understand how to calculate home insurance coverage. As a result, many may be overpaying for coverage they don’t need or are unknowingly underinsured and leaving their property under-protected in case of a disaster, says a new study from Policygenius.

The “Home Insurance Literacy Survey,” which sampled 2,500 U.S. consumers age 25 and over from June 25 to July 3, 2020, also highlights glaring knowledge gaps in what home insurance does and does not cover. Consider that half of the respondents did not know that a typical homeowners insurance policy does not cover floods, and more than 80% did not know that a standard policy does not cover earthquakes.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

Heather A. Turner

Heather A. Turner is the managing editor of ALM's NU Property & Casualty Group. She can be reached at [email protected].

More from this author

 

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.