Homeowners Lack Coverage Knowledge
NU Online News Service, March 11, 10:20 a.m. EST?Identity theft is very much on the minds of homeowners, even if they are confused about whether their policies cover it, according to a recent carrier commissioned survey .
The survey results, released by Novato, Calif.-based Fireman's Fund Insurance Company, say nine out of ten U.S. homeowners also say they have concerns about becoming the victims of identity theft.
According to the online survey of 1,129 homeowners throughout the United States, conducted by Harris Interactive, 97 percent say they have heard of identity theft. Nearly one in four knows someone who has been a victim.
More than half, 61 percent, are unsure whether their homeowner's insurance policy would compensate them for expenses entailed in recovering their credit following this type of fraud. Only 11 percent of the homeowners surveyed believe that their policy protects them.
"With the likelihood of identity theft increasing each year, these survey results suggest that more than 60 million homeowners could be at financial risk if they were to fall victim to this type of fraud," said Michelle Kenney, underwriting executive at Fireman's Fund in a statement.
"Despite that increasing trend, only a small percentage of policies actually provide coverage for expenses incurred in recovering from identity theft," Ms. Kenney revealed.
In other survey findings by the market research and consulting firm, based in Rochester, N.Y., homeowners expressed concern about being sued. An overwhelming number, 94 percent, say they feel there are more lawsuits today than 10 years ago.
In addition, 86 percent think high-monetary judgments in personal lawsuits are excessive, and 67 percent believe they personally might be sued sometime during their lives.
Despite these concerns, less than one in four have personal "umbrella" insurance to protect against a large-dollar lawsuit, the survey noted.
A large majority, 80 percent of those surveyed, reported that the market value of their home has increased in the last five years. But only 63 percent of those who say the value of their home has increased have increased their insurance coverage to account for that.
One-third of the homeowners surveyed say they do not know what it would cost to replace their home, and just under one-third do not know if temporary living expenses are covered by their policies.
A summary of the survey, entitled "Fireman's Fund Homeowners Insurance Awareness Survey," is available online at //www.ffic.com/resources/HarrisTopline.pdf.
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