The Hanover: Coverage Confidence Gaps Leave Homeowners Confused

• By: AnneMarie McPherson Spears
• June 8, 2026

Homeowners overwhelmingly say they want strong insurance protection, but many remain unclear on what their policies actually include, according to The Hanover’s “2026 Home Report.”

The survey of 1,173 adult homeowners, conducted by The Harris Poll in March, points to a coverage confidence gap between what consumers say they value and what they have taken the time to verify.

Consumers say strong insurance protection is valuable to their peace of mind. The vast majority—96%—say that personal property replacement cost coverage is important, with another 90% saying identity fraud protection is important. Another 90% say water backup coverage is valuable to them, and 89% say service line coverage is important.

But those coverages can vary by carrier and policy tier, and many have not confirmed whether those coverages are part of their policies, despite their importance.

Forty-six percent said they had not verified that they have identity fraud protection. Another 41% had not checked for service line coverage, and 38% had not confirmed water backup coverage. Even personal property replacement cost, a more familiar protection, had not been verified by 24% of respondents.

The gap leaves consumers in a risky position, as their worries are both common and costly. Regular repair expenses led the list of homeowner concerns at 45%, followed by severe weather and natural disasters at 42%. Another 32% cited nonweather incidents such as water leaks and fires.

Homeowners are willing to pay to cover those risks, The Hanover found. Eighty-one percent said comprehensive protection with no coverage gaps or surprises is absolutely essential or very important when choosing a carrier. And 74% said they would rather have broader protection at a higher cost than pay less for a policy with fewer safeguards.

Nearly two-thirds said expert advice from a licensed insurance professional, such as a live agent, is important to them. As agents try to move coverage conversations beyond premium, homeowners appear willing to follow suit, but many still need proactive guidance on how to address their concerns. 

“For many people, a home is their most important asset. Homeowners want confidence their insurance will protect them when it matters most, yet many aren’t fully certain what their policies include,” said Daniel C. Halsey, president of personal lines at The Hanover. “While price will always be a factor, choosing coverage based on cost alone can leave people under-protected and facing higher out-of-pocket expenses after a loss.”

“Talking with an independent insurance agent can help homeowners understand their coverage, identify potential gaps and make more confident decisions about protecting their homes and financial well‑being,” Halsey adds.

AnneMarie McPherson Spears is IA news editor.