Do You Really Understand Your Insurance Coverage? Survey Reveals Surprising Gaps

A recent survey by Trusted Choice, representing members of the Independent Insurance Agents & Brokers of America, uncovers a startling reality: while 86 percent of Americans believe they understand their insurance coverage, many are actually mistaken about what their policies include.

Survey Findings: Common Misconceptions

The survey highlights several key areas where Americans are misinformed:

• Flood Damage: 56 percent of respondents are unaware that standard homeowners policies do not cover flood damage.

• Home Renovations: 70 percent do not know that materials or fixtures intended for home renovations are not covered under standard homeowners policies.

• Home Inventory: 46 percent do not have or are unsure if they have a home inventory of major household items, which is crucial for filing claims.

• Business Use of Vehicles: 55 percent are unaware that standard auto policies do not cover business use of the vehicle.

• Personal Items in Cars: 44 percent incorrectly believe that personal items stolen from their car are covered by their auto insurance; typically, these items are covered under home or renters insurance policies.

Understanding insurance coverage is critical as it protects people’s most valuable assets. Charles Symington, Big “I” president and CEO, emphasizes that the insurance knowledge gap is significant and that independent agents can help bridge this gap by providing accurate information and guidance, especially in today’s challenging insurance market.

The survey gathered responses from 400 consumers with home, auto, pet, jewelry, and/or personal umbrella insurance through mobile targeting.

The findings highlight the importance of regularly reviewing and understanding your insurance policies to ensure adequate coverage. Independent insurance agents can play a pivotal role in educating consumers and helping them navigate their coverage options.