Travelers Survey Suggests Potentially Costly Gaps

HARTFORD, Conn., Aug. 28 /PRNewswire/ -- A substantial proportion of American homeowners* 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 http://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 http://www.travelers.com.

Travelers is a business of The St. Paul Travelers Companies, Inc. (NYSE: STA - News), 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 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 http://www.harrisinteractive.com.

*U.S. adults ages 18 and older who currently own the home they are living in.

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Source: The St. Paul Travelers Companies, Inc.