SAN FRANCISCO, May 13, 2013 /PRNewswire/ -- A new InsuranceQuotes.com survey found that many Americans are confused by homeowner's insurance. For example, more than two in five Americans (41%) believe that a standard homeowner's insurance policy protects against mold damage.
"This misconception could prove extremely costly," said Laura Adams, senior insurance analyst, InsuranceQuotes.com. "Mold remediation can cost tens of thousands of dollars. It's often not covered by homeowner's insurance, especially if it was caused by neglected maintenance such as a leaky pipe."
InsuranceQuotes.com also found that most Americans are misinformed regarding personal belongings stolen from a car (73% aren't aware that this type of theft is covered by homeowner's insurance) and earthquake damage (51% don't know that this is not covered by a standard homeowner's insurance policy).
Two better understood aspects of homeowner's insurance are fire damage (90% of Americans know that homeowner's insurance covers this) and lawsuits from an injured visitor (72% know this is covered).
Just under one-quarter of homeowner's insurance policyholders said that they chose their current provider primarily because of a recommendation from someone they trust (22%). A similar number (21%) said the most important factor was the service they received from their agent. Seventeen percent said their decision hinged on getting the lowest price. Only 1% said a radio or television commercial was the most important factor in their decision.
The survey was conducted by Princeton Survey Research Associates International (PSRAI) and can be seen in its entirety here:
PSRAI obtained telephone interviews with a nationally representative sample of 1,003 adults living in the continental United States. Telephone interviews were conducted by landline (500) and cell phone (503, including 229 without a landline phone). Interviews were done in English by Princeton Data Source from April 4-7, 2013. Statistical results are weighted to correct known demographic discrepancies. The margin of sampling error for the complete set of weighted data is plus or minus 3.7 percentage points.
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Public Relations Manager, Bankrate, Inc.