Some stats: Thirty-three percent of household heads who have homeowners insurance mistakenly believe flood damage would be covered by the standard policy, despite massive media coverage on the issue after Hurricane Katrina. Sixty-eight percent think vehicles such as cars, boats and motorcycles stolen from or damaged on their property are covered. And fifty-one percent believe damages from a break in the water line on their property supplying water to their home are covered.
“Many homeowners could be seriously harmed financially by misunderstandings about their insurance,” said Walter Bell, NAIC President and Alabama Insurance Commissioner. “It’s critical that consumers look closely at their policies and ask their insurance agents detailed questions to become fully aware of what is, and what is not covered.”