Concern has been voiced that people are reducing their insurance cover in an attempt to save money during the recession, with home and motor insurance affected the most.
As a result, it is feared that homeowners and motorists could be left exposed to greater financial risk if they suffer a fire, burglary or have their car stolen or damaged.
According to research by the British Insurance Brokers' Association (BIBA), more than one in five advisers have seen customers reduce their level of insurance protection as the downturn has bitten ever harder.
Almost one in three had noted a reduction in the number of people taking out non-essential cover and opting for add-ons to their policies.
Other practices people have adopted to try to bring the cost of cover down included reducing sums insured and increasing excesses.
"I am concerned that families are putting themselves at financial risk by reducing insurance," said Eric Galbraith, BIBA chief executive. "Cutting out the wrong part of your insurance protection could be a costly mistake."
