Monday, 16 July 2007
Survey Says: Homeowners Aren’t As Covered As They Think
Now that the 2007 hurricane season has arrived, many officials and experts in the insurance industry recommend homeowners check to see if they have enough coverage.
Experts are concerned people are misinformed about what their homeowners insurance policy covers. Research by the National Association of Insurance Commissioners (NAIC) confirmed their worries.
The recent survey found many people incorrectly believe certain damage is covered by homeowners insurance, in particular flood damage. 33% of Americans who are the heads of household think flood damage is covered by a standard policy. In fact, most homeowners policies won’t cover it at all — additional flood coverage is required.
“Many homeowners learned the hard way that their insurance policies did not provide flood protection,” said New Hampshire Insurance Commissioner, Roger Sevigny.
In addition to flood damage, standard homeowners insurance also will not cover stolen or damaged vehicles on the property, breaks in the water line or sewer line, earthquake damage, mold damage, or damage from termites or other infestations. But more than a third of homeowners think these damages are covered.
“Homeowners could be seriously harmed financially by misunderstandings about their insurance,” added Sevigny. “It’s critical that consumers look closely at their policies and ask their insurance agents detailed questions to become fully aware of what is, and what is not, covered.“
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