Closing the Coverage Gap: How Agents Can Help Homeowners Protect What Matters Most
While the vast majority of homeowners in the U.S. purchase homeowners insurance, many fail to buy ancillary coverages that address significant exposures, such as lawsuits and cybercrime, leaving considerable gaps in coverage. The “Homeowners Coverage Awareness Report,” a recent survey commissioned by The Hanover and conducted by The Harris Poll, reveals that homeowners are well aware of these ancillary coverages. Still, only a small proportion put them in place.
For example, as customers’ lifestyles evolve, many also acquire valuables that a basic home policy may not adequately protect, including jewelry, golf clubs, artwork, and more. This is when valuables coverage is needed, yet it’s one of the ancillary coverages that many homeowners fail to buy.
These gaps present outstanding opportunities for independent agents to identify unaddressed risks and deliver real value to their clients by putting valuable insurance solutions in place.
A Troubling Reality
Our 2025 “Homeowners Coverage Awareness Report” highlighted the following coverage gaps:
- 83% of homeowners are aware of umbrella insurance, but only 23% have a policy.
- 87% know about valuables coverage, yet just 26% have it.
- 94% have heard of recreational vehicle insurance, but only 31% have discussed it with an agent.
- Cyber insurance awareness is lowest, at 46%, and just 7% have coverage.
The Role of Independent Agents: Trusted Advisers in a Changing Landscape
Independent agents are uniquely positioned to bridge the gap between awareness and action. The report underscores several ways top agents are making a meaningful impact:
1) Educate beyond the basics. Many homeowners assume their standard policies cover everything. Walking them through potential coverage gaps, such as liability beyond limits, cyber threats, and coverage for high-value items, can help them identify areas where they need stronger protection. When homeowners understand the risks, interest rises dramatically. In fact, two-thirds of homeowners said they would be interested in adding umbrella coverage after learning what it protects, according to our survey.
Home cyber protection is also becoming increasingly essential for all homeowners. In 2024, over 1.35 billion victim notifications were issued in the U.S. due to data compromises, according to the Identity Theft Resource Center (ITRC), making it the second-highest annual total since ITRC began tracking such incidents.
Cyber coverage helps pay for expenses related to restoring compromised systems, recovering stolen identities and conducting legal and forensic reviews. Some carriers, including The Hanover, even provide support services for minors affected by cyberbullying. Simple, relatable claims examples are a great tool to help customers understand where coverage differs and visualize when they may need it.
2) Just ask. The survey results showed that many customers have not had a conversation with their carriers or agents about important coverages such as umbrella, cyber and valuables. Independent agents are uniquely equipped to help close this gap by asking new prospects about their holistic needs and weaving these check-ins into annual policy reviews.
It’s always a good idea to ask about any valuables that may need protection. Jewelry is a big one, but also collectibles, sports gear, art or musical instruments may also require separate coverage. Similarly, any recreational vehicles they own should be insured. Even if they decline coverage, they will walk away with a greater knowledge of their risks.
3) Lead with service, not price. Our survey shows 81% of homeowners rank customer service as “absolutely essential” or “very important,” while only 58% prioritize the lowest price. Luckily, this is where independent agents shine. Your value is far beyond apples-to-apples quotes or reducing coverage to get a lower premium. Position yourself as a trusted adviser who delivers peace of mind, not just a policy.
4) Bundle for simplicity and protection. Keeping all coverage with one carrier helps identify gaps and ensures a consistent service experience. It also makes it easier for clients to manage their policies and for agents to provide proactive recommendations. At the same time, this also drives higher retention for agencies—especially when they share common effective dates.
The Opportunity Ahead
As we look ahead, the role of the independent agent has never been more critical. Homeowners are navigating a complex and shifting risk environment. They need guidance, clarity and confidence in their coverage decisions. Luckily, our survey shows they are very open to these conversations and are likely looking for guidance.
At The Hanover, we believe in providing agents with the tools and insights to lead these conversations. Together, we can help homeowners build insurance plans that truly protect their income, assets, and peace of mind, leading with expertise, empathy and education, ultimately ensuring every homeowner is prepared for whatever comes next.
For more insights, read the full “Homeowners Coverage Awareness Report” at hanover.com.
Daniel C. Halsey is president of personal lines at The Hanover Insurance Group Inc.
