Research reveals widespread insurance coverage blind spots

0
138

The survey, commissioned to mark National Insurance Awareness Day, analyzed how the COVID-19 pandemic has changed the lives of Americans and whether they have made the necessary adjustments to maintain effective insurance coverage. The survey, which interviewed 2,000 adults, was conducted by OnePoll on behalf of The Hanover.

The study found that seven out of ten respondents made significant changes in their lives in the past year. For example, 18% adopted a pet while 13% renovated their home. The changes revealed some common insurance blind spots, said the Hanoverian.

Top blind spots in insurance

  • 68% of respondents didn’t know that making changes to their homes and gardens – like adding pools or trampolines – or adding pets could mean changing their homeowners’ policies
  • 77% did not know that homes above a certain price may need special insurance coverage
  • Little did 75% know that umbrella insurance could protect them from financial loss if sued
  • Almost 70% were unaware that the market value of their home – the selling price – was not the replacement value – the price to rebuild
  • 34% weren’t sure what their policies covered
  • 30% said they had blind spots on their insurance because they didn’t know what coverage they needed

Read more: Hannover reveals catastrophe claims in the first quarter

Many consumers started renovations during the pandemic. Many of the top projects cited, like remodeling a kitchen or bathroom, adding a workspace from home, or replacing roofs or siding can have a direct impact on insurance. However, 63% of respondents said they did not know that their homeowner policy needs to be reviewed or updated during renovations.

“With all of the home improvement projects that have been carried out during the pandemic, it is important to make sure that insurance policies reflect these changes,” said Daniel Halsey, president of the retail division at The Hanover. “Our results showed that the majority of respondents agreed that it would be helpful to have their insurance coverage checked by an insurance professional. Independent brokers are seasoned, professional resources for consumers who want to make sure they have adequate insurance to protect these investments. “