The Hanover Report — What Your Homeowner Clients Know about Their Insurance

Independent insurance agents — as you know — provide critical information on the insurance policies of their clients. It’s why we’re a better choice than the do-it-yourself-on-line version of insurance purchasing.

A Harris Poll survey commissioned by The Hartford proves that statement. The survey quizzed people 30 and up and shows a huge percentage of homeowners don’t know all that much about the insurance they’re purchasing, and — more importantly — the insurance they need.

The results are fascinating. Here’s a look at a few kinds of insurance:

Umbrella

• 83% are aware of its existence
• 23% have the insurance

Valuables

• 87% are aware of how that insurance works
• 26% have the insurance

Cyber

• 46% are aware of the need
• 7% have the insurance

Recreational vehicles

• 94% are aware of insuring them
• 20% have the insurance

​The Hartford then asked a follow-up question. The insurer wanted to find out whether agents or brokers mentioned options for those types of insurance. Sadly, the agents of those surveyed didn’t do all that well.

Umbrella

• 61% said no, it was not mentioned

Cyber

• 87% said no, it was not mentioned

Valuables

• 55% said no, it was not mentioned

Recreational vehicles

• 45% said no, it was not mentioned

The gaps mentioned in this section of the survey highlight the importance of a homeowner knowing, and understanding, their risks. This is information best learned from a qualified independent insurance agent.

For example, there is a high awareness of the importance of umbrella insurance. However, just 23% actually have an umbrella policy. lk

​Question: If there was extra insurance that could help protect your savings, income, or home in case of a serious accident, or a lawsuit, behind what your auto or home insurance covers, starting at $1 million in coverage for about $30 a month, how interested would you be in adding it?

• 24% very interested
• 42% somewhat interested
• 23% not very interested
• 11% not interested at all

That shows 66% of homeowners are probably interested in an umbrella policy, and they’re open to discussing that option.

When it comes to valuables, not-surprisingly, 87% of homeowners are aware of the need for that kind of insurance. But just 26% have that kind of coverage and that led to the next question which looks at how those valuables are protected.

Question: if you lost a ring valued at $10,000 in a house fire, does basic homeowners insurance cover that loss?

• 13% — fully covered, no deductible
• 31% — fully covered after deductible
• 8% — partially covered, no deductible
• 19% — partially covered after deductible
• 29% — not covered at all

The results of that question shows that a lot of homeowners think they are covered more than they are covered. Just 19% of those polled fully understand their coverage and how that coverage applies to this scenario.

This is where an independent insurance agent can help educate a homeowner in what is actually covered and how.

Next up, what is important to the homeowners when working with their independent insurance agent.

• 81% — excellent customer service
• 74% — only pay for what I need
• 71% — coverage for as much as possible
• 58% — convenience of all my insurance with one company
• 58% — the lowest price

Customer service ranks at the top but only paying for what is needed and coverage set up for a specific need follow closely behind.

Source link: Hanover — https://bit.ly/3WDH6BS