According to a report released by the National Association of Insurance Commissioners, homeowners don’t realize that their insurance policies don’t cover as much as they think they do.
Floods, earthquakes, termites, mold, water-line and sewer-line breaks and several other perils, large and small, aren’t covered by a typical homeowners’ policy, the NAIC, a group of state insurance regulators, said.
And yet, some home owners still think these risks are covered in their policies, the group added, citing a recent survey it completed.
More than half of homeowners polled think damage from a break in the water line on their property supplying their home is covered. More than a third think sewer-line breaks, earthquakes and mold are covered, the NAIC found. More than 30% reckon damage from termites or other infestation is covered.
Hopefully readers of this site realize that all of those perils usually require riders of some sort (you should all probably realize that at the very least for high dollar items and for flooding) but it’s amazing the percentages of the population that are misguided. I’d recommend reading the whole article to get a better handle of how this situation occurred.
Source: Marketwatch
One Comment
It seems to me that everybody would want to make sure that they are covered for what events that may occur in the area of the country, such as flooding in areas prone to flood, and earthquakes on the west coast. However ignorance is bliss until disaster strikes.
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