FOSTER CITY, Calif.–Credit unions that offer their members home insurance products will want to pay attention to the results of a new survey.
According to the survey conducted by Insurance.com, nearly half of homeowners are unsure what liabilities their home insurance covers, and were also uncertain of numerous other aspects of their coverage.
“Turns out, many homeowners don’t understand how their home insurance coverage works, and many aren’t shopping a policy to get the best price,” said Michelle Megna, managing editor of Insurance.com, referring to findings from the survey of 1,000 homeowners.
Among key findings:
- 24% have no idea how much liability insurance they have
- 84% incorrectly thought they had to pay a deductible when filing a liability claim
- One-third don’t compare rates to make sure they’re getting the best deal
- 40% didn’t know how personal property insurance works
- 59% didn’t know what replacement value means in terms of home insurance reimbursement
“The reason why the findings are important is because it shows that homeowners are at risk for being underinsured,” said Megna. “Research shows that as many as three out of five homeowners are underinsured by an average of 20% which means if your house costs $200,000 to replace, you’d be short by $40,000 if you had to file a claim.”