Material excerpted from: Big I – Anne Marie Mcpherson
Three in 10 Americans feel they have insurance blind spots in their lives because they do not know what insurance coverages they need, according to a survey commissioned by The Hanover Insurance Group, and 34% are unsure about what their policies cover.
In recognition of National Insurance Awareness Day, the study, conducted by OnePoll, analyzed how the coronavirus pandemic has changed Americans’ personal lives and whether they made the necessary adjustments to maintain effective insurance protection.
The survey uncovered key blind spots among consumers, emphasizing how independent agents can utilize their strengths in personalized risk management to be proactive in helping consumers understand and address gaps.
Seven in 10 respondents made significant changes in their lives over the last year, including adopting a pet (18%) to renovating a home (13%). Home improvement projects were common, with 29% remodeling a kitchen or bathroom, 21% adding a work-from-home space, and 15% having a roof or siding replaced.
Such projects can have direct insurance implications, but 63% of respondents said they weren’t aware that home insurance policies may need to be reviewed and updated when renovations or updates are made to a property.
Further, more than 2 in 3 did not know that making changes to their homes and yards, including the addition of pools, trampolines, or pets could necessitate changes to their homeowner’s policy.
More than three-quarters of respondents were unaware that homes above a certain price point may need special insurance coverages, while another three-quarters did not know umbrella insurance could help protect them from financial loss if they are sued. And 7 in 10 were unaware their home’s market value (price to sell) was not the same as its replacement value (price to rebuild).
“With all the home improvement projects undertaken during the pandemic, it’s important to make sure insurance policies reflect these changes,” said Daniel Halsey, president of personal lines at The Hanover. “Our results showed the majority of respondents agreed it would be helpful to have their coverage reviewed by an insurance expert.”
“Independent agents are experienced, professional resources for consumers who want to ensure they have the appropriate insurance coverages in place to project these investments,” Halsey added.
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