Two new surveys reveal that while Americans increasingly value their homes as both financial and emotional assets, many still underestimate the gaps in their insurance protection - leaving them vulnerable to cyber threats, lawsuits, and costly repairs.
A new Homeowners Coverage Awareness Report by The Hanover Insurance Group, Inc., conducted by The Harris Poll, found widespread misunderstanding about what homeowners policies actually cover. The survey of nearly 1,000 US homeowners aged 30 and older showed that while 87% were aware of valuables insurance, only 26% had such coverage. Similarly, 83% knew of umbrella insurance but just 39% had discussed it with an agent, and only 23% carried a policy.
Cyber coverage had the lowest awareness level, with fewer than half (46%) of respondents familiar with the protection and only 7% holding a policy.
“These findings highlight the critical role independent agents play in educating homeowners and helping them make informed decisions,” said Daniel C. Halsey, president of personal lines at The Hanover. “Homeowners face a growing number of risks that aren’t addressed by a basic homeowner’s policy, making it all the more important to build tailored insurance plans that can help protect their income and assets.”
The survey also revealed a significant gap between awareness and actual protection. Many homeowners assumed their standard policies provided broader coverage than they do, underscoring the need to add specific protections - such as coverage for valuables - to ensure full protection. While only 23% of respondents currently hold an umbrella policy, 66% said they would be interested in adding one once they understood the additional protection it offers.
Beyond coverage, customer service remains a top priority. Eight in 10 respondents rated service quality as “very important” when choosing insurance, compared with just 58% who prioritised the lowest price. “Keeping coverage together with one carrier can also help identify potential gaps and provide a more consistent experience,” Halsey added.
Meanwhile, a separate report by Nationwide highlighted another trend: homeowners are taking greater responsibility for home safety - but not always in the right areas. The Forever Homes, Overdue Repairs survey found that while younger generations are embracing smart home technology, many still overlook basic maintenance and safety equipment.
According to Nationwide, 7% of homeowners lack smoke detectors, 27% don’t have carbon monoxide detectors, and 21% are missing fire extinguishers. Even more concerning, 73% have no water leak detectors and 77% lack electrical fire monitoring devices - despite many insurers offering these tools for free or at discounted rates.
“Smart tech is a powerful tool, but it’s not a substitute for basic maintenance,” said Sarah Griffin, senior vice president of personal lines product and underwriting at Nationwide. “The best protected homes are the ones where technology and routine care work hand in hand. The real opportunity is helping homeowners blend innovation and upkeep.”
The report highlighted that education and regular policy reviews can make a significant difference. Nationwide found that 53% of homeowners reviewed their policies in the past year, and 45% consulted agents to better understand their coverage.
Experts note awareness is protection. “Small steps, like reviewing your policy or installing a leak detector, can make a big difference in protecting what matters most,” said Griffin.
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