A new survey from Trusted Choice, the national consumer brand that represents members of the Independent Insurance Agents & Brokers of America, reveals that while 86 percent of respondents believe they have a strong understanding of what their policies cover, many are actually incorrect or unsure when it comes to coverage specifics.

According to the survey:

• 56 percent of Americans are unaware that a standard homeowners policy does not cover flood damage.
• 70 percent of respondents are unaware that a standard homeowners policy does not cover materials or fixtures that are to be installed during home renovations.
• 46 percent do not have or are unsure if they have a home inventory of major household items in case they need to file a claim.
• 55 percent are unaware that a standard auto policy does not cover business use of the vehicle.
• 44 percent incorrectly believe that personal items stolen from their car are covered by a standard auto insurance policy; in fact, a standard home or renters insurance policy typically covers such theft.

“Because insurance protects people’s most important assets, it’s crucial that policyholders understand their coverage. But unfortunately, our survey shows there is a considerable insurance knowledge gap among consumers,” said Charles Symington, Big “I” president and CEO, in a statement. “Independent insurance agents can bridge that gap by serving as a resource on coverage expectations versus realities, especially in this difficult insurance market where many people need more guidance.”

Methodology

National survey via mobile targeting of 400 consumers who have home, auto, pet, jewelry and/or personal umbrella insurance.