Popular misconceptions about homeowners’ insurance
How well do you understand Homeowners Insurance?
A new survey from Insurance.com surveyed1,000homeowners to learn how informed they are when it comes to home insurance. The survey found that many respondents didn’t comprehend or are confused about parts of their policy.
⌂Only about half (52%) knew what liability insurance covers.
Liability insurance coversaccidents in which the insured or their direct family is at faultand causes injury or damages.
This includes lawsuits filed because of these accidents.
⌂ 24%of home insurance policy owners say they have no idea how much liability insurance they have.
Generally, policies come with a$300,000liability limit but this can be increased on request.
If you have children, consider a higher liability limit or umbrella policy – the most common liability claims involve kids.
⌂ Do you know if you pay a deductible when filing a liability claim?84% homeowners don’t.
The answer? No.
Do you know what amount your policy deductible is?
⌂75% don’t understand how medical payments covers differs from liability insurance.
Medical payments cover up to a set amount for medical bills for guests injured in your home, regardless of fault.
⌂ Most respondents didn’t know what Dwelling Coverage means.
Only41%knew it’s the amount that best matches the replacement cost of your home.
⌂ 2 out of 5responded not knowing what Personal Property covers.
It replaces your personal possessions for up to a certain amount of your dwelling coverage (with Farmers it starts at 40% and can be increased).
⌂Onlyone thirdreported that they shop around for the best price and company.
Shopping helps you know when you’re getting the best rates and service and when it’s time to switch.
Check in with your agentat least once a year(we suggest once every renewal or more often) to make sure you’re up to speed with your policies and have the right coverage.