Do Americans Understand How Property Insurance Works? Survey Says… Not Quite.

At DocuSketch, we recently surveyed 1,000 U.S. adults aged 25 and older to understand how people think about insurance and how well that lines up with how the system actually works.

What we found confirms a tension many in the industry already sense: while insurance is meant to provide peace of mind, the experience of buying, using, and trusting it often leaves people confused or frustrated. From policy selection to claim resolution, many consumers are navigating a system they don’t fully understand—and don’t always trust.

These findings highlight a clear opportunity for insurance professionals, brokers, and carriers to close the gap by focusing on better education, more transparent communication, and greater transparency, particularly during the claims process when expectations are highest.

What the data tells us: key findings from the survey

Claims transparency has a long way to go

More than half of Americans (54%) believe insurers lack transparency when it comes to how claims are calculated. Skepticism is more pronounced among older generations, with 59% of Boomers and 61% of Gen X expressing doubt, compared to 44% of Millennials and 50% of Gen Z.

This signals a breakdown in one of the most critical parts of the insurance experience: the claim itself. When policyholders don’t understand how outcomes are determined, it creates frustration even when payouts are fair.

Clear, visual documentation can help close that gap. Tools like DocuSketch provide a shared record of damage and scope, giving all parties a reliable reference point during the claims process. That kind of clarity makes outcomes feel explainable, not arbitrary, and that’s essential for building long-term trust.

Consumers rely on brokers—but don’t always trust them

45% of Americans say they don’t trust insurance brokers to act in their best interest.

This tension suggests that many consumers are relying on brokers out of necessity, not loyalty. They need help navigating complex policies but often feel the experience is transactional or unclear.

This is an opportunity. Brokers who take time to explain coverage, answer questions, and clarify expectations can move from being seen as intermediaries to being trusted advisors. In a crowded market, that kind of relationship is a competitive edge.

Consumers understanding of their policy falls short in key areas 

74% of home owners say they feel confident in their understanding of what their insurance policy covers.

But the data reveals gaps in that understanding—especially when it comes to navigating policies and asking the right questions:

• 26% didn’t know what to ask when shopping for a policy
  
  
• 23% felt confused by policy language
  
  

These point to real vulnerabilities, and it’s something for insurance brokers to think about as younger consumers enter the market for the first time. In the moments that matter most, a lack of clarity can lead to poor coverage choices and disappointment during a claim.

Brokers who actively educate and guide, especially early in the relationship, can close this gap and build long-term trust.

Fraud concerns are high for younger generations

12% of Americans say they’ve suspected they were involved in an insurance fraud scam — a number that rises to 21% among Millennials and 38% among Gen Z.

While these suspicions don’t necessarily reflect actual fraud, they point to a deeper issue: when the claims process feels unclear or inconsistent, trust breaks down. Poor communication, vague explanations, or missing documentation can all contribute to the sense that something isn’t right — even when everything is above board.

To reduce suspicion and disputes, insurers and restoration professionals need to be proactive. Documentation matters. Platforms like DocuSketch create a visual record of loss and repair that protects both policyholders and providers. When everyone can see what happened, it's easier to agree on what’s fair.

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The Path Forward: Clarity at Critical Moments

The survey results show that while many Americans are actively engaging with insurance, they often do so with uncertainty. They want to trust their brokers. They want to understand what they’re paying for. And they want to feel confident that, when needed, their coverage will deliver.

This creates an opportunity for the industry not just to provide policies, but to offer guidance, education, and clarity throughout the customer journey. Whether it’s through better conversations or more precise documentation during the claims process, small steps toward transparency can have a lasting impact.

Because trust in insurance doesn’t just come from coverage — it comes from understanding.

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