This is something independent insurance agents and companies ought to consider doing more of before government steps in and starts pushing edicts. Actually, Weekly Industry News has seen stories from other news sources about politicians thinking exactly that way.
And here’s why. People just don’t understand their insurance policies and what is, or is not, covered if there is an incident, or if a claim has to be filed.
Here’s an example. Goosehead Insurance did a study of homeowners insurance. The results are shocking but — alas — not all that surprising to those of us working in the business.
- 65% of Americans have absolutely no idea what is fully covered in their homeowners policy
- 45% have seen a claim denied because the policy wasn’t understood
This comes out of a survey titled, the Homeowners Insurance Preparedness Report. Goosehead VP, Brian Pattillo said the totals come from 2,000 homeowners contacted by Goosehead.
“Our findings drive home the point that the insurance process is overwhelming and extremely difficult to navigate for most American homeowners,” he said.
- 76% say they find the selection of a policy to be very stressful
- Just 27% will go shopping for a policy that fits everything they need
- A paltry 20% looked at over 5 policies before choosing one
Pattillo said the survey also shows a huge disconnect between what people think is covered and what is actually covered.
- 32% think flooding caused by a storm is covered by their homeowners policy
- 29% think a home’s foundation problems are covered by the homeowners policy
- 27% think termite damage is covered by their homeowners policy
And the worst:
- 70% say they do not understand common insurance terms like liability limit, actual cash value, identity theft fraud expense protection
Source link: Insurance Business America — https://bit.ly/3X4VVLJ