Survey: Many Americans Unsure if Their Homeowners Insurance is In-Synch With Their Needs
August 28 2006 - 6:00AM
PR Newswire (US)
Travelers Survey Suggests Potentially Costly Gaps HARTFORD, Conn.,
Aug. 28 /PRNewswire/ -- A substantial proportion of American
homeowners* are unsure of what homeowners coverage they have for
specific circumstances, according to the "Travelers In-synch
Homeowners Insurance Study," released today by Travelers and
conducted by Harris Interactive. If they are underinsured, even a
seemingly insignificant event could leave their homes and finances
vulnerable. The research data showed that: * Nearly three in ten
(27 percent) are not sure whether their policy will cover the
replacement cost of rebuilding if the home is damaged. * At least
one-quarter (26 percent) report they are unsure whether damage
caused by natural disasters is covered under their policy. * Over
one-third (36 percent) are unsure whether their policy will cover
damage caused by a hurricane. * Four in ten (42 percent) are
uncertain about earthquake coverage. * One-quarter (26 percent) are
unsure about flood damage. * More than one-third (37 percent) are
not sure whether their policy will cover hotel stays if their home
is damaged. Insurance Needs Evolve Over Time "Life and business are
dynamic, and so insurance needs change and evolve," said Joseph P.
Lacher Jr., executive vice president of Travelers Personal
Insurance. "We are encouraging people to talk to an independent
agent to get more information about their coverage and to discuss
their changing needs. It's all about managing risks, and keeping
your insurance in-synch with your risks to put you in greater
control." 44% of Homeowners Have Not Revisited Their Insurance
Coverage in Past Year The Travelers survey asked more than 1,300
homeowners about their insurance to determine what they knew about
their coverage, how often they reviewed their policy to ensure that
it remained in-synch with their needs, and the ways in which they
conducted that review. The results suggested that more than four in
ten (44 percent) homeowners had not revisited their insurance
coverage in the past year -- some not in the last 10 years. "It's
not at all unusual for homeowners to get insurance coverage when
they buy a house, but not revisit it for years," said Lacher.
"There are so many things that can impact your coverage --
remodeling, installation of burglar alarms, major purchases -- but
the survey suggests that few people are making sure that as those
changes occur, their insurance remains in-synch with their lives."
Reviewing Policy With Insurance Agent Increases Confidence in
Coverage The survey also reaffirmed the value of working with an
insurance agent to make sure that coverage types and levels are
where they should be. More than two-thirds (66 percent) of those
who last reviewed their policies with an agent strongly agreed that
their current coverage was, in fact, in-synch with their needs.
"Homeowners should review their coverage before they have a claim,"
said Lacher. "If something happens, being underinsured is an
unpleasant surprise when coupled with a financial loss." "In-synch
Challenge" Helps Homeowners Identify Common Risks and Problems
Within Home To help homeowners identify common risks, Travelers is
offering the "In-synch Challenge," a fun and informative
interactive game on http://www.travelers.com/ that provides
important risk mitigation information to consumers. Visitors will
be asked to tour homes and businesses and to solve a series of
common problems related to risks or exposures that policyholders
typically overlook. For example, one game asks participants to
correctly place smoke detectors inside a home. Another challenges
participants' understanding of high-worth items that can be found
in the average living room. And a third asks small-business owners
to spot areas where slip-and-falls might occur. "The Travelers
brand is about helping consumers make the best decisions based on
the risks -- known and unknown -- they're most likely to
encounter," concluded Lacher. "We're focused on getting that
message out to consumers, and as the survey makes clear, it's a
message that needs to be heard. That's what having insurance that's
in-synch with your life is all about." About Travelers Travelers
understands that life and business are inherently dynamic and that
the best way to serve agents and policyholders is to deliver
insurance that evolves to stay in-synch with life and business as
they change. For more information on being in-synch, visit
http://www.travelers.com/. Travelers is a business of The St. Paul
Travelers Companies, Inc. (NYSE:STA), a leading property casualty
insurer selling primarily through independent agents and brokers.
The company's diverse business lines offer its global customers a
wide range of coverage in both the personal and commercial
settings, including automobile, homeowners, construction, small
business, oil and gas, ocean marine, financial and professional
services, global technology and public sector services. St. Paul
Travelers is ranked 85 in the Fortune 500, with 2005 revenues of
$24.4 billion and total assets of $113.2 billion. The company has
approximately 32,000 employees. About the Survey This survey was
conducted online by Harris Interactive on behalf of Travelers among
2,075 adults (aged 18 and over), 1,395 of whom are homeowners
within the United States between May 30 and June 1, 2006. Figures
for region, age within gender, education, household income and
race/ethnicity were weighted where necessary to bring them in line
with their actual proportions in the population. Propensity score
weighting was also used to adjust for respondents' propensity to be
online. With a pure probability sample of 2,075 adults one could
say with a ninety-five-percent probability that the overall results
have a sampling error of +/- 3 percentage points. Sampling error
for subsample results is higher and varies. However, that does not
take other sources of error into account. This online survey is not
based on a probability sample and therefore no theoretical sampling
error can be calculated. About Harris Interactive Harris
Interactive is the 13th largest and fastest-growing market research
firm in the world. The company provides research-driven insights
and strategic advice to help its clients make more confident
decisions which lead to measurable and enduring improvements in
performance. Harris Interactive is widely known for The Harris
Poll, one of the longest-running, independent opinion polls and for
pioneering online market research methods. The company has built
what could conceivably be the world's largest panel of survey
respondents: The Harris Poll Online. Harris Interactive serves
clients worldwide through its United States, Europe and Asia
offices, its wholly owned subsidiary Novatris in France and through
a global network of independent market research firms. The service
bureau, HISB, provides its market research industry clients with
mixed-mode data collection, panel development services as well as
syndicated and tracking research consultation. More information
about Harris Interactive may be obtained at
http://www.harrisinteractive.com/. *U.S. adults ages 18 and older
who currently own the home they are living in. DATASOURCE: The St.
Paul Travelers Companies, Inc. CONTACT: Jennifer Wislocki for The
St. Paul Travelers Companies, Inc., +1-860-277-7458 Web site:
http://www.travelers.com/ http://www.harrisinteractive.com/
Copyright
St. Paul (NYSE:STA)
Historical Stock Chart
From Jun 2024 to Jul 2024
St. Paul (NYSE:STA)
Historical Stock Chart
From Jul 2023 to Jul 2024