Many homeowners misunderstand their insurance coverage. In the excitement of purchasing a new home, insurance is often an afterthought purchased because of a loan requirement, not true interest in the product. This can mean there are coverage gaps agents can help close through awareness and education. Read on to learn more about how to close coverage gaps and help policyholders better understand their coverage.
Significant Homeowner Insurance Coverage Gaps Found in Recent Survey
The recent Homeowners Coverage Awareness Report released by the Hanover Insurance Group illuminates some interesting coverage gaps between what homeowners think they have coverage for and what their policy actually covers. These knowledge and coverage gaps provide an opportunity for agents to better service policyholders. The poll was conducted in August 2025 and asked homeowners about their coverages, including homeowners, umbrella, cyber, valuables, and recreational vehicles.
Significant findings from the survey included:
- 83% of respondents were aware of umbrella coverage but only 23% reported having an umbrella policy
- 66% were very interested or somewhat interested in adding umbrella coverage once they learned what it was
- 81% ranked customer service as essential or very important when selecting an insurance company
- 58% listed lowest price as their top priority when purchasing insurance
- 87% were aware of endorsements to cover jewelry and other valuables while 26% reported having this coverage
These findings support opportunity areas for agents to work with policyholders to help them close coverage gaps in their personal insurance policies. And as homeowners face growing exposures from emerging risks that are not always covered by a standard homeowners form, the time is right for agents to address these gaps.
Four Ways to Close Homeowner Insurance Awareness and Coverage Gaps
Here are four ways agents can use the findings of the report to better service their policyholders to identify and close insurance coverage gaps:
Respondents ranked excellent service over lower price when selecting insurance coverage. This finding reinforces that policyholders prefer great customer service when working with an agent or insurance company. It is good news for independent agents who excel at establishing long-term, positive relationships with policyholders. Agents can build stronger partnerships by listening to policyholders, understanding their needs, and finding creative insurance solutions that cover gaps in the existing program. Trust develops over time through consistency and transparency, which agents can offer through open conversations.
The report highlighted awareness gaps among policyholders. Many policyholders who were surveyed did not know about different types of coverage, specifically umbrella, cyber, recreational vehicle, and endorsements for jewelry and valuables. Knowing of these awareness gaps means agents can educate consumers and offer them coverage through a consultative approach. Host webinars, write newsletters, and create an educational website with resources and links for policyholders to learn more. Closing awareness gaps through education can help agents establish themselves as experts and trusted advisors while also closing coverage gaps with endorsements and customized service.
Coverage conversations are under-utilized, according to the report. The report highlighted another coverage gap concern. Even when policyholders are aware of coverage, 87% of those surveyed reported their agent or insurer did not offer them information about cyber coverage and 61% were not offered umbrella coverage. This finding shows homeowners are ready to talk about different types of coverage if their agent raises the discussion. Agents can add this to their renewal checklist and coverage discussions throughout the year. Instead of only discussing current coverages, review other policies and endorsements that may be useful.
Track outcomes of coverage discussions and automate follow-up discussions. For each policyholder, document coverage conversations including gaps identified, coverages recommended, and next steps. Ensure the policyholder signs off on any declinations of recommended coverage. At the next renewal or coverage discussion, continue the conversation and ask about changes to ensure coverage remains appropriate. This accountability can help reinforce the agent’s role as a trusted advisor and makes renewal discussions more robust.
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External Links:
- https://investors.hanover.com/news/news-details/2025/New-Report-from-The-Hanover-Reveals-Gaps-in-Homeowners-Insurance-Awareness/default.aspx
- https://www.forbes.com/councils/forbesbusinessdevelopmentcouncil/2020/07/07/consultative-selling-five-tips-for-improving-your-outcomes/
