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A substantial proportion of American homeowners(a) are
unsure of what homeowners coverage they have for specific
circumstances, according to the "Travelers In-synch Homeowners
Insurance Study," released today by Travelers and conducted by Harris
Interactive. If they are underinsured, even a seemingly insignificant
event could leave their homes and finances vulnerable.
The research data showed that:
-- Nearly three in ten (27 percent) are not sure whether their
policy will cover the replacement cost of rebuilding if the
home is damaged.
-- At least one-quarter (26 percent) report they are unsure
whether damage caused by natural disasters is covered under
their policy.
-- Over one-third (36 percent) are unsure whether their policy
will cover damage caused by a hurricane.
-- Four in ten (42 percent) are uncertain about earthquake
coverage.
-- One-quarter (26 percent) are unsure about flood damage.
-- More than one-third (37 percent) are not sure whether their
policy will cover hotel stays if their home is damaged.
Insurance Needs Evolve Over Time
"Life and business are dynamic, and so insurance needs change and
evolve," said Joseph P. Lacher Jr., executive vice president of
Travelers Personal Insurance. "We are encouraging people to talk to an
independent agent to get more information about their coverage and to
discuss their changing needs. It's all about managing risks, and
keeping your insurance in-synch with your risks to put you in greater
control."
44% of Homeowners Have Not Revisited Their Insurance Coverage in
Past Year
The Travelers survey asked more than 1,300 homeowners about their
insurance to determine what they knew about their coverage, how often
they reviewed their policy to ensure that it remained in-synch with
their needs, and the ways in which they conducted that review. The
results suggested that more than four in ten (44 percent) homeowners
had not revisited their insurance coverage in the past year--some not
in the last 10 years.
"It's not at all unusual for homeowners to get insurance coverage
when they buy a house, but not revisit it for years," said Lacher.
"There are so many things that can impact your coverage--remodeling,
installation of burglar alarms, major purchases--but the survey
suggests that few people are making sure that as those changes occur,
their insurance remains in-synch with their lives."
Reviewing Policy With Insurance Agent Increases Confidence in
Coverage
The survey also reaffirmed the value of working with an insurance
agent to make sure that coverage types and levels are where they
should be. More than two thirds (66 percent) of those who last
reviewed their policies with an agent strongly agreed that their
current coverage was, in fact, in-synch with their needs.
"Homeowners should review their coverage before they have a
claim," said Lacher. "If something happens, being underinsured is an
unpleasant surprise when coupled with a financial loss."
"In-synch Challenge" Helps Homeowners Identify Common Risks and
Problems Within Home
To help homeowners identify common risks, Travelers is offering
the "In-synch Challenge," a fun and informative interactive game on
www.travelers.com that provides important risk mitigation information
to consumers. Visitors will be asked to tour homes and businesses and
to solve a series of common problems related to risks or exposures
that policyholders typically overlook. For example, one game asks
participants to correctly place smoke detectors inside a home. Another
challenges participants' understanding of high-worth items that can be
found in the average living room. And a third asks small-business
owners to spot areas where slip-and-falls might occur.
"The Travelers brand is about helping consumers make the best
decisions based on the risks--known and unknown--they're most likely
to encounter," concluded Lacher. "We're focused on getting that
message out to consumers, and as the survey makes clear, it's a
message that needs to be heard. That's what having insurance that's
in-synch with your life is all about."
About Travelers
Travelers understands that life and business are inherently
dynamic and that the best way to serve agents and policyholders is to
deliver insurance that evolves to stay in-synch with life and business
as they change. For more information on being in-synch, visit
www.travelers.com.
Travelers is a business of The St. Paul Travelers Companies, Inc.
(NYSE:STA), a leading property casualty insurer selling primarily
through independent agents and brokers. The company's diverse business
lines offer its global customers a wide range of coverage in both the
personal and commercial settings, including automobile, homeowners,
construction, small business, oil and gas, ocean marine, financial and
professional services, global technology and public sector services.
St. Paul Travelers is ranked 85 in the Fortune 500, with 2005 revenues
of $24.4 billion and total assets of $113.2 billion. The company has
approximately 32,000 employees.
About the Survey
This survey was conducted online by Harris Interactive on behalf
of Travelers among 2,075 adults (aged 18 and over), 1,395 of whom are
homeowners within the United States between May 30 and June 1, 2006.
Figures for region, age within gender, education, household income and
race/ethnicity were weighted where necessary to bring them in line
with their actual proportions in the population. Propensity score
weighting was also used to adjust for respondents' propensity to be
online.
With pure probability samples, with 100 percent response rates, it
is possible to calculate the probability that the sampling error (but
not other sources of error) is not greater than some number. With a
pure probability sample of 2,075 adults one could say with a
ninety-five percent probability that the overall results have a
sampling error of +/- 3 percentage points. Sampling error for
subsample results is higher and varies. However that does not take
other sources of error into account. This online survey is not based
on a probability sample and therefore no theoretical sampling error
can be calculated.
About Harris Interactive
Harris Interactive is the 13th largest and fastest-growing market
research firm in the world. The company provides research-driven
insights and strategic advice to help its clients make more confident
decisions which lead to measurable and enduring improvements in
performance. Harris Interactive is widely known for The Harris Poll,
one of the longest running, independent opinion polls and for
pioneering online market research methods. The company has built what
could conceivably be the world's largest panel of survey respondents:
The Harris Poll Online. Harris Interactive serves clients worldwide
through its United States, Europe and Asia offices, its wholly-owned
subsidiary Novatris in France and through a global network of
independent market research firms. The service bureau, HISB, provides
its market research industry clients with mixed-mode data collection,
panel development services as well as syndicated and tracking research
consultation. More information about Harris Interactive may be
obtained at www.harrisinteractive.com.
(a)U.S. adults ages 18 and older who currently own the home they
are living in.