New Hanover Report Highlights Critical Gaps in Homeowners' Insurance Awareness

Gaps in Homeowners' Insurance Awareness

In a world where risks are ever-evolving, a recent survey conducted by The Hanover Insurance Group, Inc. and The Harris Poll has illuminated some critical gaps in the insurance awareness of U.S. homeowners. The findings from the 2025 Homeowners Coverage Awareness Report highlight the potential vulnerabilities faced by homeowners, particularly in areas such as lawsuits, cybercrime, and inflation.

The survey targeted U.S. homeowners aged 30 and older and assessed their understanding and adoption of four specific insurance coverages: umbrella, cyber, valuables, and recreational vehicles. The results reveal a troubling disconnect between the awareness of these coverages and the actual protection homeowners have secured.

Low Awareness of Cyber Insurance
The report indicates that awareness of cyber insurance is alarmingly low, with only 46% of homeowners familiar with it. This translates to just 7% of respondents actually having this coverage. As cyber threats continue to rise, this statistic raises significant concerns about homeowners’ preparedness to protect themselves against digital risks.

Umbrella and Valuables Insurance
Similarly, umbrella insurance, which provides additional liability coverage, seems to be underutilized despite a higher level of awareness at 83%. Yet, only 39% of homeowners have discussed this coverage with their insurance agents. Awareness does not translate into action since only 26% of homeowners with valuables coverage feel adequately protected, despite 87% being aware of it.

For recreational vehicle insurance, while 94% of homeowners recognized the need, a mere 31% have engaged in discussions with their insurance providers about obtaining this coverage. This gap highlights that while homeowners may have some knowledge about the different types of insurance available, many do not pursue necessary protections.

Desire for Better Understanding
The report reveals that only 23% of homeowners possess an umbrella policy; however, a significant 66% expressed interest in such a policy following an explanation of its benefits. This suggests a strong opportunity for education in the insurance space, illuminating the critical role independent agents can play in guiding homeowners toward making informed decisions regarding their coverage.

Customer Service as a Priority
Moreover, the survey found that effective customer service significantly influences homeowners’ decisions when selecting insurance. An overwhelming 81% of respondents rated customer service as “absolutely essential” or “very important.” In contrast, only 58% prioritized the lowest price as their primary concern. This finding emphasizes the necessity for insurance companies to cultivate trust and provide a high-quality service experience.

Halsey elaborated on the importance of centralized coverage, stating, “Keeping coverage together with one carrier can help identify potential gaps and deliver a more consistent customer service experience.” Halsey stresses the importance of homeowners talking with their agents about their evolving needs and constructing insurance plans that effectively protect their income and assets.

Conclusion
The 2025 Homeowners Coverage Awareness Report paints a sobering picture of the current state of homeowners' insurance knowledge. The significant gaps in understanding and action signal a need for increased communication between homeowners and their insurance agents. By fostering greater awareness and providing comprehensive education on available coverage options, the industry can ensure homeowners are better equipped to manage the diverse risks they face today.

For those wishing to delve deeper into the findings of the 2025 Homeowners Coverage Awareness Report, it is available for review at hanover.com.