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Personal Finance

Many Homeowners Confused About Insurance

Wednesday, June 27, 2007 7:18:49 PM
By EILEEN ALT POWELL

NEW YORK (AP) - If your house is flooded during a hurricane, is the damage covered by your homeowners insurance policy? Will it cover a motor scooter stolen from the backyard? Or your son's possessions when he moves into his college dormitory?

The answer to all those questions is generally "no," though a surprising number of homeowners don't know that, according to a study by the National Association of Insurance Commissioners. That means many homeowners may not be carrying the right insurance to protect themselves from storms, fire and other perils.

The association, which represents state insurance regulators, asked nearly 700 homeowners who carry insurance about their policies and found widespread misunderstanding about what's covered and what isn't.


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