A survey from HomeInsurance.com has shown that 54 per cent of homeowners admit to knowing "not much at all" about their
home insurance.
According to HomeInsurance.com, homeowners need to understand what cover they have to be sure they are properly covered in the event of a disaster.
Parts of home insurance such as replacement value, which losses are covered and deductibles are often the aspects people know least about.
A
home insurance deductible, or excess, is the amount the holder pays for covered damage before the insurance comes in.
If a policy holder's financial situation changes they need to update their deductible, said Carlos Lagomarsino, chief executive officer of HomeInsurance.com, as failure to do so could mean homeowners pay a high premium or could be left with an unaffordable high deductible.
Replacement value in insurance is the value of replacing items which are damaged or destroyed. If people make home renovations and do not inform the insurance company, the replacement value for rebuilding their home if destroyed may not adequately cover the cost of rebuilding to its previous standard.
Research conducted by Sainsbury's
Home Insurance in May of this year claimed that 4.7 million UK adults do not have any home contents insurance, as reported on Yahoo Finance.