A lot of homeowners don’t think too much about their insurance until it’s time to file a claim.
There is a troubling disconnect between homeowner confidence and actual policy knowledge, according to a recent survey by Guardian Service.
While 85% of homeowners feel moderately to extremely confident in their insurance knowledge, the data showed only 29% could correctly answer five basic terminology questions—and 72% of Gen Z respondents failed the quiz entirely.
While 49% of Gen Z respondents said they were very confident in their insurance knowledge, only 28% passed the quiz and just 13% got a perfect score, Guardian Service said in the report. Meanwhile, Millennials did slightly better, with 58% passing and 25% getting all correct. Gen X and Boomers were the top performers, with 80% and 90% passing, respectively, and 37% of each group answering everything correctly.
Generational trends:
- Gen Z is highly confident, yet more likely to rely on others or borrow for repairs.
- Millennials shop the most frequently, but report high confusion and time strain.
- Gen X stays loyal to insurers even when coverage doesn’t keep pace.
- Boomers are financially ready, but less engaged with their coverage details.
“A lot of homeowners don’t think too much about their insurance until it’s time to file a claim and they realize they misunderstood what their insurer covers and what they’re left to deal with,” said Kara Credle, licensed personal lines insurance producer at Guardian Service.
“Policy language can be confusing, and the fine print isn’t always easy to navigate,” she added. “That confusion can lead to costly surprises. Insurance should offer peace of mind, not uncertainty, and that starts with making the details clear from the beginning.”
Among the common misconceptions for all generations:
- Sixty-eight percent couldn’t define “actual cash value” (hint: replacement cost minus depreciation).
- Nearly one in four confused premiums with deductibles.
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