Don’t make this home insurance mistake!
Sales of contents insurance have dropped by nearly 13% year on year, according to comparethemarket.com.
The price comparision site said that many people across the UK are leaving their homes and possessions exposed, because of the increasing price of home insurance and the fact that many continue to work from home during the pandemic.
Over half (55%) of UK households have seen their home insurance premium increase since lockdown began. According to comparethemarket.com, the average annual contents insurance policy in September 2020 was £68. However, this rose to £82 in December 2020 – an increase of £14.
One in ten (11%) policyholders have recently decided to cancel add-on cover, for accidental damage, home emergency cover, or contents outside the home. Insuring individual valuable items appears to be another money-saving area with over half (52%) not insuring any individual items within their home insurance policy. Shopping around for contents insurance is an effective way to protect your items and ensure you are not paying over the odds.
Chris King, head of home insurance, at comparethemarket.com, said: “At a time when households are struggling with their finances, discretionary spending often comes under a spotlight. Our research suggests that many people have chosen to cut costs by deciding not to take out contents insurance. This trend is concerning as leaving valuable items uninsured can often result in short-term gain but longer-term pain.
“Leaving belongings uninsured can leave households at risk of high replacement costs if these items are damaged or stolen. We would urge people to strongly consider keeping their contents cover, particularly if they have valuable items in the house that would be impossible or costly to replace. Shopping around online and comparing home policies can be an easy way to find a cheaper deal and save money, while providing peace of mind that your valuables and home are protected.”