More than five million people shun house insurance - Home insurance - News |

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

More than five million people shun house insurance

More than five million people shun house insurance

Category: Home insurance

Updated: 27/11/2012
First Published: 27/10/2010

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 It is now over 6 months old so the content may be out of date.

More than five million people are putting their possessions in jeopardy by neglecting to take out a home insurance policy. Despite the winter approaching, a season in which home insurance claims usually peak due to weather conditions, people are shunning insurance altogether and opting out of renewals in their droves.

In fact, more than a fifth of UK households – equating to 5.41 million people – are thought to be without household contents cover, research conducted by The Co-operative Insurance and Shelter has found. It appears that household insurance is taking a back seat as people struggle to make ends meet.

Over two thirds (68%) of people are worried about money with 28% having more outgoings than incomings, the average deficit being £165, and that over a quarter (26%) of people do not feel confident that they can pay their bills every month.

In addition, over a fifth (22%) of people don't consider home insurance to be important, while 18% do not believe that they have anything worth insuring.While finances are being squeezed hard, insuring your home for around the price of a round of drinks a month could save you thousands of pounds in the long run.

Nationwide offers great rates on its home insurance products and customers can save up to 30% when they take out buildings and contents insurance together. Furthermore, existing Nationwide customers can get an extra 15% off their home cover.

Home insurance from Barclays is also worth a look. Some 20% can be saved by applying online and cover comes with three months free insurance, equating to around a 45% discount when paired with the online discount.

Even if you feel you have little in the way of value, you should consider the potential costs you may incur if a problem originating in your property causes damage to somebody else's home.

"At the moment everyone is, understandably, looking to save money however a worryingly high percentage of the population do not have home insurances and are leaving themselves open to much greater risks and expenditure in the long run," Lee Mooney, head of home insurance at The Co-operative Insurance, said.

"If there is a fire, originating from an uninsured home, which causes damage to other surrounding properties, the uninsured person would be liable for repairs to all the damaged properties."

Compare cheap home, content and buildings insurance

*Product and rate information and availability is correct as of the date of publication (shown at the top of the article). Products may be withdrawn by their provider or changed at anytime.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.