In a recent study it has been revealed that 54% of all homeowners admitted to know ‘not much at all’ about their home insurance policies.

Carolyn Gorman from Insurance Information Institute stated: “The reason people need to understand their homeowners insurance is because it’s the only way to know if you have the right amount of insurance and the right type of insurance.” Some of the most important home insurance policies are ignored such as deductibles, covered losses and replacement values.

One of the most poorly understood areas of home insurance is the actual coverage. Homeowners insurance policies can vary in types of coverage but a standard home insurance policy commonly covers contents, liability, loss of use and dwelling.

Carlos Lagomarsino stated: “When talking to homeowners it becomes apparent that many of them are unaware of the limitations of their policies. Some homeowners don’t realise that they have liability insurance built into their homeowners insurance. Others think that flood damage is covered.”