Homeowners, demonstrating in a new study their lack of understanding of what is covered with a homeowner’s policy, would rather pay more and have coverage, than face potential financial exposure.

“More than two-thirds of consumers surveyed also said they’d rather pay a higher premium than be told that a loss isn’t covered,” said Bill Moore, president of MetLife Auto & Home, in a statement. “To ensure this doesn’t happen, consumers can find the best value by learning more about their policies and selecting the coverage that best meets their needs, rather than simply shopping for the lowest premium.”

The Zogby International survey for MetLife Auto & Home found that 31% of Americans don’t know how much their most valuable assets — their homes — are insured for. An additional 46% don’t know how much coverage they have for their homes’ contents such as furniture and clothing.

“At a time when many are working hard to save more and spend less, many Americans are leaving themselves open to costly surprises by not fully understanding the details of their policies and the scope of its coverage,” Moore said. “By knowing what they are — and are not — covered for, Americans can make sure they have the right amount of insurance coverage and avoid unwanted surprises.”

Exactly 30% of homeowners believe their insurance coverage is based on the current market value of their home. Actually, the available coverage limit for homeowners insurance is based on the cost to rebuild the home, a mistake that could lead to confusion for homeowners trying to evaluate whether they have the right amount of insurance, according to the MetLife officials.

More than two thirds (71%) of those surveyed believe insurance pays for the full cost to rebuild their property in the event of a major loss such as a fire or other natural disaster.

Almost three-quarters (73%) believe insurance will pay the full cost to replace personal belongings in the event of a loss.

About 60% believe insurance will pay for the full cost of replacing valuables, such as jewelry and collectibles.

For a major loss, 64% of those surveyed expect their insurance to cover any building code mandated upgrades that are necessary.