One in three home and auto policyholders who have filed a claim say their coverage fell short of expectations. Fourteen percent say no part of their claim was covered, according to a new survey from VIU by HUB, an embedded insurance brokerage platform backed by Hub International. The findings point to a coverage review gap that brokers are well-positioned to close.
The survey was conducted online by The Harris Poll in June among 1,663 US adults with home or auto policies. It also found that 41 percent of policyholders have made no change to their home or auto coverage in more than a year. Twenty percent have not made any change since purchasing.
The figures land against an independent body of research. According to the American Property Casualty Insurance Association (APCIA), about two out of three US homes may already be underinsured. A separate study conducted by the Insurance Information Institute (Triple-I), meanwhile, has found that only 30 percent of insured homeowners have updated their coverage to keep pace.
The communication gap is as wide as the coverage gap, the Hub survey suggests. Among policyholders polled, 88 percent said they would want their provider to flag when coverage no longer fits their life, without having to ask. Yet 56 percent said their provider has not proactively reached out in over a year, or are not sure it ever has. Twenty-one percent said proactive contact has never happened at all.
Policyholders tend to hear from their insurer at three points: when they buy, when the policy auto-renews, and when they file a claim. Life events that alter exposure, such as home renovations, a new driver, or a change in household composition, typically fall between those touchpoints. Many policyholders are not connecting those changes to a coverage review.
The financial consequences are visible in the survey data. Sixty-seven percent of policyholders said covering a $1,000 unexpected home or auto expense would be a struggle, with about one in five calling it a serious hardship.
A separate 2026 Home Report from The Hanover Insurance Group found a parallel pattern in homeowners' coverage knowledge. Ninety percent of respondents said coverage with no gaps was important or very important. Yet large numbers had not verified what their policy actually included.
Sixty-five percent of policyholders in the Hub survey said switching policies for better rates feels like more effort than it is worth. The finding cuts both ways for brokers. Policyholder inertia makes proactive outreach more likely to succeed, because the alternative for most clients is to do nothing at all.
The survey data comes from a source with a clear commercial interest in embedded insurance distribution. VIU by HUB, which commissioned the research, sells a platform that places insurance through banks, mortgage lenders, and auto manufacturers. The embedded channel findings in the survey are consistent with that pitch.
The coverage gap data is independently corroborated. The APCIA's two-thirds underinsurance estimate and Triple I's replacement cost figures come from sources without a stake in the survey's conclusions. Taken together, they describe a client base that is largely passive on coverage and financially exposed to relatively modest claims.
For brokers working personal lines, the data points to a straightforward action: structured outreach tied to life events rather than renewal dates alone. Home renovations, new drivers, inherited property, and household changes each alter exposure in ways that auto-renewing a prior year's policy does not capture.
Independent agencies sold 87 percent of commercial lines insurance in the US in 2025, up from 83 percent a decade ago, according to data cited in The Hanover's 2026 report. The personal lines channel offers a similar opportunity for agents who conduct regular coverage reviews, particularly as homeowners' rates moderate.
"The relatable takeaway is that people want relationships, not situationships," said Bryan Davis, president of VIU by HUB. "It's time for customer service in insurance to go beyond responding only when asked for help or when something goes wrong. It should be attentive and thoughtful, proactively reaching out with solutions and guidance."
He added that the firm plans to introduce proactive outreach features to flag coverage misalignments before clients ask.
