Understanding Homeowner Insurance
By Victor J. Lefeve

A recent survey conducted by the National Association of Insurance Commissioners shows that the public has limited knowledge of what is actually covered under the standard homeowner insurance policy.

The most significant finding in this survey was that 33% of people having homeowner insurance believe that flood damage is covered by the standard homeowner insurance policy. Other misinformation revealed by this survey is as follows:

• 68% of respondents thought that cars, boats, or motorcycles, stolen or damaged on their property are covered.
• 34% of respondents thought that mold damage is covered.
• 31% of respondents thought that termite damage is covered.
• 12% of respondents did not know if their homeowner insurance policy covered the actual cash value of their property, or the replacement cost.

Consumers should be better educated in determining their homeowner insurance needs. A simple plan to start this educational process is to ask your insurance agent to share an insurance coverage checklist with you. This coverage checklist will help you determine if you require any additional coverages to adequately protect you and your property.

Victor J. Lefeve, CPCU, CIC, CPIA, is President of Employees Insurance, a local independent insurance agency.