Most homeowners and renters wouldn't mind paying more to insure their home but, ironically, most of them don't have enough coverage to protect them from risks they face.

When Zogby International conducted a survey homeowners and renters for MetLife Auto & Home it found more than 71 percent believe that their insurance carrier would pay for the full cost to rebuild from a natural disaster or fire, while 72 percent said they would be reimbursed for the full cost to replace personal belongings.

In reality, all insurance companies "cap" the amount of benefits paid for a total loss, unless additional coverage is purchased. Unless state otherwise, most policies also take depreciation into account when assessing damage to personal belongings.

The survey also found:

• Sixty-nine percent of those surveyed expected that their home insurance would pay, in the event of a loss, for building code required upgrades to the property, such as upgraded wiring. In fact, the standard insurance policy does not cover such upgrades, possibly leaving many homeowners in a financial bind that must be resolved before the repair work can begin.

• More than six out of ten (64 percent) of those surveyed believe that their home insurance would provide coverage for water damage resulting from the back-up of water from sewer, sump pump, or drains. Standard homeowners policies typically exclude this type of damage. Sewer back up coverage can be purchased through a separate endorsement.

• More than one third of those questioned also didn't know their home owners policy covered them from lightning damage, although it's covered by most policies.

MetLife president Bill Moore says consumers can avoid misunderstandings and insurance gaps for a premium that is equal to or less than their current premium.

"It always makes sense to ask questions and to shop around for the best value," said Moore.

"The simplest solution -- and the best value for your money -- is to have the coverage you need automatically built into your policy. There’s a lot of competition in the marketplace, and you can find a product that's right for you, with a little homework," he added.

The homeowner insurance portion of the Zogby/MetLife Auto & Home insurance survey sample consisted of 1,203 adult renters and homeowners interviewed February 19-28, 2007.

Moore advises taking stock of your insurance policy by sitting down with your agent and going over the fine print.

Need more insurance help?

Visit:

• The Insurance Information Institute for more consumer information from the industry.

• National Association of Insurance Commissioners for more consumer information from regulators.

• Independent Insurance Agents & Brokers of America for more consumer information for the industry of independent agents.

• AM Best Ratings for the financial ratings of insurance companies.

Published: August 9, 2007

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Broderick Perkins parlayed a career in old-school journalism into a contemporary digital news service that really hits home. The award-winning consumer journalist, originally from Wilmington, DE, is founder, publisher and executive editor of the bootstrap DeadlineNews Group, a Silicon Valley-based editorial content and consulting service specializing in residential real estate, consumer news and related editorial consulting services. The DeadlineNews Group includes the website, DeadlineNews.com, offering real estate editorial content and consulting services, and its back shop, the Deadline Newsroom, an open house on news that really hits home. Perkins obtained his formal journalism education from University of Delaware and a journalism boot camp, the Institute of Journalism Education at the University of California-Berkeley. He went on to 20 years of service as a daily newspaper journalist at the Wilmington, DE News Journal and San Jose, CA Mercury News. Perkins covered housing on the San Jose Mercury News reporting team which earned a General News Reporting Pulitzer Prize in 1989 for coverage of the Loma Prieta earthquake. He has also produced real estate, consumer and small business content for the Wall Street Journal, Los Angeles Times, RealtyTimes.com, Nolo.com, Better Homes and Gardens, the National Association of Realtors, Homestore/Move and Intuit/Quicken among more than three dozen publications. In addition to managing the DeadlineNews Group, Perkins most recently served as chief editorial consultant for Nolo's Essential Guide To Buying Your First Home, Nolo, and writes real estate television scripts for RealtyTimes.com.