Survey: Many Americans Unsure if Their Homeowners Insurance is in-Synch with Their Needs; Travelers Survey Suggests Potentially
August 28 2006 - 10:50AM
Business Wire
A substantial proportion of American homeowners(a) 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 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 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 pure
probability samples, with 100 percent response rates, it is
possible to calculate the probability that the sampling error (but
not other sources of error) is not greater than some number. 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
www.harrisinteractive.com. (a)U.S. adults ages 18 and older who
currently own the home they are living in.
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