Nearly 1.5 million homeowners are putting their homes at risk with inadequate cover according to a new survey by Britain’s number one comparison site, moneysupermarket.com.
–> 250,000 homeowners have no insurance at all for their homes
–> London and the South-East are least protected areas
One in 16 UK homeowners (6 per cent) admit they are missing out on some form of insurance and only have either buildings or contents insurance – not both – this doubles to one in eight (12 per cent) of younger homeowners aged between 18-34.
Half a million homeowners admit to only covering contents, while 750,000 have buildings insurance only; a quarter of a million homeowners admit to having no cover at all**. The survey also reveals that 11 per cent of homeowners in London and the South East are putting themselves at risk of costly payouts.
Julie Owens, head of home insurance at moneysupermarket.com said: “Inadequate cover is a serious problem for many homeowners, and is a very dangerous position to be in.
“Homeowners seem to be taking the ‘either/or’ approach by foregoing some part of their home insurance, but having both buildings and contents cover is important and not as costly as many may think. Common incidents such as accidental damage, burglary or loss of possessions away from the home can lead to very expensive bills without contents insurance to protect you, and most mortgage providers will insist you have buildings cover before they lend to you.
“Those quarter of a million homeowners with no cover at all are taking a huge unnecessary risk, problems such as subsidence, burst pipes, personal liability and even boiler breakdown in some cases could land you with a bill well into the thousands of pounds.
“Giving yourself peace of mind by having appropriate buildings and contents insurance is well worth it and doesn’t have to cost a lot. I would recommend shopping around for the best deal to suit your needs, buildings and contents insurance is available from as little as £169 a year. (See table below)
“As well as shopping around, opting to pay for the cost of your home insurance by month is a good way of keeping your initial outlay for home cover down, splitting the cost in to smaller payment amounts can also make things easier and there are some home insurance providers who do not charge an APR for opting to pay in monthly instalments.”
