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Do you think you have an accurate understanding of what your home insurance policy does and doesn’t cover? Well, based on new data, chances are … you may not, but you're not alone.
In a March 2017 survey commissioned by insuranceQuotes, 56% of respondents mistakenly believed that a standard homeowner's policy covers flood damage. For millennials ages 18 to 36, the percentage rose to 67%.
“Being misinformed about your home policy can be an extremely expensive mistake — especially when a few inches of water in a 1,000 square-foot home can easily cost over $10,000 in repairs,” said Laura Adams, senior insurance analyst at insuranceQuotes. “There are a number of widespread myths ranging from coverage for dog bites to items stolen from your car that frequently trip up policyholders.”
Consumers may overestimate their coverage when it comes to flooding, but they underestimate when it comes to dog bites. Regarding potential lawsuits filed by someone bitten by a policyholder's dog away from the owner’s property (such as at a dog park or on the street), 54% of respondents and 67% of millennials didn't know they would be protected with a standard homeowner's policy.
And while 81% of respondents knew that valuables stolen from their homes were covered under a standard homeowner's policy, only 28% knew renter's insurance would cover valuables stolen from their cars. For millennials the percentage was even lower: 25%.
For less than $200 a year on average, renter’s insurance provides broad protection for personal property, liability and loss of use. But the survey also reveals that only 58% of millennials who rent have a renter’s insurance policy.
Source Courtsey of Insurancequotes
Diana Walton: Licensed Real Estate Advisor
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