Ahead of National Insurance Awareness Day on Friday, June 28, Trusted Choice®—the national consumer brand representing the members of the Big “I"—surveyed consumers about their insurance acumen. The results revealed that most Americans do not fully understand the insurance coverages they have purchased, yet 86% believe that they do.

"Because insurance protects people's most important assets, it's crucial that policyholders understand their coverage. But unfortunately, our survey shows there is a considerable insurance knowledge gap among consumers," said Charles Symington, Big "I" president and CEO. “Independent insurance agents can bridge that gap by serving as a resource on coverage expectations versus realities, especially in this difficult insurance market where many people need more guidance."

The national survey of 400 consumers who have home, auto, pet, jewelry or personal umbrella insurance revealed some key coverage misconceptions:

1) Flood damage: 56% of Americans are unaware that a standard homeowners policy does not cover flood damage.
2) Home renovations: 70% are unaware that a standard homeowners policy does not cover materials or fixtures that are installed during renovations.
3) Home inventory: 46% do not have or are unsure if they have a home inventory of major household items in case they need to file a claim.
4) Business use of vehicle: 55% are unaware that a standard auto policy does not cover business use of the vehicle.
5) Items stolen from vehicle: 44% incorrectly believe that personal items stolen from their car are covered by a standard auto insurance policy, though it is in fact a standard home or renters insurance policy that typically covers such theft.
6) Parking tickets: 57% are unaware that a parking ticket, in general, won't affect a driver's auto insurance premiums.

The results demonstrate the critical need for independent agents to help consumers navigate the various nuances of the insurance market and ensure consumers purchase the coverage they require.

“Insurance coverage can be confusing. Consumers often think they have a strong grasp on understanding their policies, but oftentimes they don't. An independent agent is best equipped to walk consumers through the entire process—from shopping for coverage to purchasing a plan and filing a claim," said Kevin Brandt, executive director of Trusted Choice. “With their unbiased guidance and personalized approach, they empower individuals to navigate policies with clarity and confidence, ensuring they truly understand their coverage and make informed decisions."

Olivia Overman is IA content editor.