One in four people have cancelled or not renewed their annual home insurance in order to save money during the recession, according to a recent survey carried out for the association of British insuraers (ABI)
The research carried out by a national survey of over 2,000 adults conducted by YouGov, on behalf of the ABI, also shows that other insurances that are seen as ‘luxuries’ such as life insurance are also being ditched, as families try to balance outgoings with income, in what is already in most homes a seemingly impossible task.
The survey found the following worrying trends for the UK Insurance market:
Nearly a quarter of people 22% say that to save money in the last year they have cancelled or not renewed their home contents insurance.
More worryingly, 17% say that they have cancelled or not renewed their buildings cover, some probably against the terms of the mortgage that usually insists that buildings cover is in place to protect value of the charge on the property.
In Scotland, the figures rise to 28% for contents and 21% for buildings.
13% have cancelled their life insurance.
One in five (21%) say that they are seriously considering reducing or stopping saving. (Well with Interest rates so low – who can blame them!)
This lack of cover is leaving many families even more exposed to their biggest fear in the recession: nearly half (49%) of those surveyed said that they currently worry about their in ability to cope with a sudden event, such as a burglary, accident or loss of employment.
Interestingly, other research found that :
Over half (53%) of women worry about how they would cope with an unexpected event (compared to 43% of men).
And 44% of women are worried about the adequacy of their pension (38% men), reflecting lower pensions among women.
Asked what cutbacks people have or would be making: over two thirds (68%) said that family treats, such as eating out, were top of their list, followed by holidays (56%). Six out of ten women are prepared to reduce spending on clothes and shoes.
Insurance Blogger urges those thinking about cutting back on home insurance cover to consider what would happen if their house was burgled or flooded?
With rising crime and rising floods a couple of hundred pounds on a home insurance policy might seem small beer if the worst occurs.
Shop around for home insurance on the Internet or visit a specialist home insurance provider for an array of good deals at the current time.