NU Online News Service, May 20, 1:30 p.m. EDT
Americans recognize the importance of protecting their assets, but ensuring adequate insurance coverage for homes, cars and other possessions ranks low on Americans' financial priority list, according to a recent Country Financial survey.
The survey, compiled by Rasmussen Reports, LLC and based on telephone calls to 3,000 Americans, found that just 2.3 percent of Americans listed having the right level of insurance protection on assets as their top financial priority.
However, when asked whether saving money for future financial needs or insuring assets is more important, 57.6 percent said both priorities are equally important, and 27.9 percent said protecting assets is more important.
Additionally, when asked how often they review coverage for their homes, cars and other property, 56.5 percent of respondents said once a year. Another 15.1 percent said once every two years, while 13.4 percent said they never review coverage.
Respondents were also comfortable with their level of insurance, with 46.2 percent indicating they are very confident they have enough coverage to protect against legal damages in the event of an auto or home accident. Another 34.5 percent said they are somewhat confident, while just 4.6 percent replied not at all confident.
With respect to respondents' biggest financial priorities, having enough money to pay monthly bills far exceeded other concerns, with 53.1 percent stating it is their top priority. Saving for a secure retirement (16.6 percent), having adequate health insurance (3.9 percent), saving for a child's education (2.8 percent), and "some other priority" (5.2 percent) also topped having the right level of insurance protection on assets.
"Property insurance is not a glamorous topic, however it's an important financial issue, especially given the amount of equity many say they have in their homes," said Keith Brannan, vice president of Financial Security Planning for Country Financial.
Country Financial noted that most Americans only have coverage to rebuild 80 percent of their homes, "so it's important for people to know exactly how much coverage they have."
Homeowners should also ensure they have coverage in case someone is injured while visiting their home, Country Financial said, as well as coverage for possessions.
"When it comes to financial security, protecting what you own today--your home, car and other possessions--is just as important to achieving financial security as saving for the future or paying bills every month," Mr. Brannan said.
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