Most homebuyers are failing to take advice on insurance
Homebuyers are failing to protect themselves for the worst by not taking out additional life or critical illness insurance.
And if they do take out insurance, many are not taking financial advice, preferring to go direct for their cover.
That’s according to broker One77 Mortgages, which surveyed over 5,000 homeowners about the financial products they chose and the advice they took.
Despite the majority using a broker to help find the right mortgage deal, many don’t seek financial advice when it comes to covering their home and income.
Just 35% opted for life insurance via their broker, while even less opted for critical illness insurance (26%).
And only 13% of those asked stated they had taken out buildings and contents insurance, with the majority choosing not to.
Managing director of One77 Mortgages, Alastair McKee, said: “It’s worrying to see how many homeowners are continuing to take a risk, particularly where life and serious illness insurance is concerned.
“We appreciate that buying a house is probably the most expensive purchase you will make, and it may feel like you’re being upsold additional insurance cover that isn’t really necessary. However, when the worst does happen it can plunge people into severe financial difficulty if they don’t have the relevant protection, and we’ve seen this happen on numerous occasions.”