Do you understand what your Homeowners Insurance covers? Have you shopped around for a good policy price?
A survey of 1,849 homeowners by ValuePenguin discovered that almost half (47%) did not know what their policy covers. “Although 64% reported they review their policy annually, only 71% said they feel confident in their understanding of what’s covered.”
The common misunderstanding the survey revealed is the certainty that flood damage is covered. Most insurance policies do not cover flood damage. 50% of millennials had this misunderstanding.
You would be surprised at the number of homeowners that pay for more than they need for coverage. Only a fraction of homeowners are actually shopping around for the best rate. Approximately 21% are actually researching rates or working with an independent insurance agent.
Homeowners are choosing providers by either opening a policy with their auto insurance provider (36%), recommendation from friends or family (15%), asking their mortgage lender (12%), or real estate agent (9%).
Do your homework, choose the best coverage, ask for the best price!