Many homeowners do not understand what exposures are covered under their home insurance policy, according to a new consumer survey.
More than two in five Americans (41 percent) believe that a standard homeowner’s insurance policy protects against mold damage, according to new InsuranceQuotes.com survey.
“This misconception could prove extremely costly,” said Laura Adams, senior insurance analyst, InsuranceQuotes.com. “Mold remediation can cost tens of thousands of dollars. It’s often not covered by homeowner’s insurance, especially if it was caused by neglected maintenance such as a leaky pipe.”
The survey also revealed that many homeowners are misinformed regarding personal belongings stolen from a car (73 percent aren’t aware that this type of theft is covered by homeowner’s insurance) and earthquake damage (51 percent don’t know that this is not covered by a standard homeowner’s insurance policy).
Two better understood aspects of homeowner’s insurance are fire damage (90 percent of Americans know that homeowner’s insurance covers this) and lawsuits from an injured visitor (72 percent know this is covered).
Just under one-quarter of homeowner’s insurance policyholders said that they chose their current provider primarily because of a recommendation from someone they trust (22 percent). A similar number (21 percent) said the most important factor was the service they received from their agent. Seventeen percent said their decision hinged on getting the lowest price. But only 1 percent of homeowners insurance purchasers said a radio or television commercial was the most important factor in their decision.
The survey was conducted by Princeton Survey Research Associates International (PSRAI). PSRAI obtained telephone interviews with a nationally representative sample of 1,003 adults living in the continental United States. Telephone interviews were conducted by landline (500) and cell phone (503, including 229 without a landline phone). Interviews were done in English by Princeton Data Source from April 4-7, 2013. Statistical results are weighted to correct known demographic discrepancies. The margin of sampling error for the complete set of weighted data is plus or minus 3.7 percentage points.
Source: InsuranceQuotes.com
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A follow-up survey to determine the main sources of policy purchasing would seem appropriate, since there appears to be 60% of purchases that are not accounted for; the 21% attributable to good service did not reveal the original reason for going with that particular carrier, only why they renewed. They would have no idea of the quality of service if not for going with them in the first place, yet only 22% is attributable to referrals.
There are 22% for referral, 17% for price and 1% from media advertising. That leaves an awful big vacuum!
The figures for why people choose theire insurer makes no sense either. 21% choose their insurer based on their agent's service. How is that significant unless they are a captive agent? And no mention of how the other 40% of the people surveyed pick their insurer. That's an awful lot to put in the "other" category.
One of the consequences of the direct writers in pushing only price as been the public's perception that the auto & homeowner contracts are all standard and all cover the same thing.
It becomes difficult to try to educate the public when all they have on their mind is "15% off".
In fact I can't cross the bridge from one county to another in my neck of the woods without reading splattered across the toll booths "15%, what more can you say".
So how do we change that?
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