Survey Reveals Homeowner Insurance Knowledge Gap Across Generations

A recent survey by Guardian Service highlights a notable gap between homeowner confidence in insurance knowledge and actual understanding of policy basics. While 85% of homeowners expressed moderate to extreme confidence in their insurance knowledge, only 29% of respondents could correctly answer five fundamental insurance terminology questions. The disparity is even more pronounced among younger generations, with 72% of Gen Z respondents failing the basic quiz on insurance terms entirely.

The findings suggest an informational disconnect that could impact homeowner decision-making during claims or policy management. This knowledge gap poses challenges for insurance providers aiming to communicate effectively and ensure clients comprehend their coverage. The survey indicates that generational differences in insurance literacy may necessitate targeted educational efforts from insurers and agents.

Confidence in insurance knowledge does not reliably translate into accurate understanding, which may affect the claims filing process and customer satisfaction. The data offers a lens into consumer behavior and suggests opportunities for insurers to enhance transparency and policyholder engagement through clearer communication and resources.

Additionally, this research may inform industry professionals about the need to tailor educational materials and digital tools that address different levels of familiarity with insurance products. As the insurance sector increasingly embraces technology and automation, bridging this gap in policy knowledge could improve customer interactions and reduce errors.

Overall, the survey results underscore the importance of addressing homeowner education as a component of risk management and customer service within the property insurance market. Closing this knowledge gap may support better outcomes for both insurers and policyholders in terms of claims handling and policy utilization.