How Many Of Us in WA Don’t Understand How Our Insurance Really Works? A LOT

If a neighbor's tree falls in your yard and causes damages, who pays?

If you're driving a friend's car and crash, whose insurance takes care of it?

  A Lot of Us Don't Know What's Covered and Not

A  new PEMCO Insurance Poll revealed a lot about policies and what's covered and not in various situations. Qualtics polled over 800 respondents in WA and OR, and asked them a variety of questions about policies.

PEMCO found that in the case of a neighbor tree falling, only 26 percent correctly answered that your own homeowner's policy will cover the cost.  35 percent incorrectly said it would be the neighbor's.

   Who Covers If Driving a Borrowed Car and  A Crash?

Only 22 percent correctly identified that coverage depends on the situation. 38 percent assumed it was their own, and 28 percent thought the friend's would.

Another significant area of the survey concerns items that are stolen from vehicles. The survey indicates less than 1 in five people (18 percent) knew that personal belongings stolen from your vehicle are covered  by homeowners insurance, as opposed to auto.

 What Are the Most Expensive Homeowner's Claims? Fire?

The study also showed the most expensive homeowners claims involve water damage, not fire. Only 24 percent of the survey respondents answered that correctly.

And finally, we've all heard the urban legend that red cars are harder to insure, because 'red' makes them look and seem 'faster.'  Only 32 percent correctly said vehicle color has no effect on rates.

These polls are designed in part to help PEMCO educate policy holders, and to help people better understand their coverage.  To see the poll results directly, click here.