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Home Insurance risk as £5.4 billion kept at home

Home Insurance risk as £5.4 billion kept at home

Category: Home insurance

Updated: 11/12/2008
First Published: 09/12/2008

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The spread of financial fear brought on by the credit crunch has led millions of Britons to keep around £5.4 billion in cash hidden in their homes.

Research from Abbey has found that an average value of £729 each (from 4.6 million Brits) is being kept at home instead of deposited with their bank or building society. In fact, around 2.8 million people withdrew an average of £704 from their bank or building society to specifically store at home.

However, with the prediction of an increase in burglaries (due to the current economic downturn), Abbey Insurance warns that people with extra cash in the house could run into insurance trouble. Although some contents insurance policies offer 'cash in the home' cover, in most cases this is limited and many people find that it is not adequate for the amount of cash they may have.

Chief Operating Officer at Abbey, Tony Beckwith: "The banking world has had a turbulent year but the systems to protect deposits and savings are in place meaning that all of us have a high degree of security. Hoarding cash in your property doesn't make sense."

"Most insurers will only cover the first £500, sometimes less, should it be stolen or destroyed in an accident and you're not going to earn interest on cash stuffed under the mattress. Even those people planning on handing over substantial Christmas cash gifts should consider whether their insurance provisions are adequate."

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