Confusion concerning homeowners insurance protection is a major problem in California
Confusion is a common problem among a large portion of Californians when it comes to the basics of homeowners insurance. A new poll from InsuranceQuotes.com, an insurance aggregator, shows that many people do not accurately know what their homeowners insurance policies cover. This confusion is not only common in California, of course, and has been documented elsewhere in the U.S. Homeowners insurance confusion was recently highlighted as a major issue that exacerbated the impact of 2012’s Hurricane Sandy.
Homeonwers unaware of the coverage their policies offer
According to the poll, four in 10 Californians do not understand what their homeowners insurance policies do not cover mold damage. The poll shows that some 73% of consumers do not know that their policies also do not cover damaged or stolen personal items. These policyholders also do not understand that homeowners insurance coverage does not protect vehicles. Moreover, the poll shows that 51% of consumers are not aware that standard homeowners insurance coverage does not provide protection from earthquakes. Earthquake coverage must be purchased as a supplement to a standard policy.
Confusion could end up being an expensive problem
Laura Adams, senior insurance analyst for InsuranceQuotes.com, suggests that this confusion could be a costly problem for most consumers. In the event of an emergency, such as an earthquake, consumers may find that their homeowners insurance policies are not capable of covering the costs of damage. This could translate into a very serious financial problem for homeowners that fall victim to such natural disasters, as is most recently evidenced in New Jersey, where Hurricane Sandy struck a grievous blow.
Awareness may be an effective, yet labor intensive solution
Awareness may be the best solution to the problem, but organizing a campaign to promote home insurance awareness among the state’s populace may be a massive and expensive endeavor. Homeowners are keen to protect themselves and their properties, but homeowners insurance companies are not expressly required to provide exhaustive and easily understandable details concerning the coverage they provide. While coverage information is not kept secret, it is typically expressed in a way that those not involved in the insurance industry can easily understand.