Make savings and learn from those further up the ladder
New research from Sainsbury's home insurance reveals that 40% of mortgage holders under 34 years old have their home buildings insurance with their mortgage provider, compared to 14% of all mortgage holders. The findings also show that 15% of people with mortgages in this age bracket felt that they had to take out their mortgage providers' insurance to secure a loan. Only ten per cent of mortgage holders thought this across all age groups.
Sainsbury's home insurance, which recently launched a new home insurance offering that provides Sainsbury's shoppers with a preferential discount on their cover, is urging young homeowners not to assume or feel any pressure that they have to take their home insurance from their mortgage provider. Young homeowners should shop around to secure the best deal.
Ben Tyte, Head of Sainsbury's Home Insurance said: "Whatever your reason for taking buildings insurance from your mortgage provider, whether it's because it was hassle free or you didn't realise there were other options, with premiums and the cost of living rising, now's the time to shop around to see if you can get a better deal.
"We believe that we are one of the most competitively priced insurers on the market. We offer a high level of cover at a competitive price and Sainsbury's shoppers with a Nectar card could also receive further discounts and double Nectar points for two years - so they could not only save on cover but also on their shopping and fuel."
Around 1.5 million people have their buildings home insurance with their mortgage provider because they wrongly believe that they had to take their cover, or they felt it was the only way to secure their mortgage. A further 2.83 million people have their home insured with their lender because they made it easy for them to do this.
Over a quarter (27%) of those with buildings insurance have been with their current home insurance provider for between three and six years and 12% - some 4.65 million people - have been with them for seven years or more.
There are two new levels of Sainsbury's home insurance to choose from and Sainsbury's shoppers with a Nectar card will receive a discount of up to 15% on their premiums. Those customers taking out Sainsbury's Premier Cover Home Insurance will earn double Nectar points on their Sainsbury's shopping for two years - the equivalent of up to 2% off their bills. For a customer regularly spending £100 a week, the value of the Nectar points would be £104 a year which is equivalent to 49% of the average combined building and contents home insurance premium.
In addition to this, between now and 4th June 2012, customers can receive 12 months cover for the price of nine on Sainsbury's buildings, contents and combined buildings and contents insurance. Also, new home insurance customers can obtain a 20% discount if they buy online.
Both products, Sainsbury's Home Insurance and Sainsbury's Premier Cover Home Insurance, offer a wide range of benefits and cover.
For more information on Sainsbury's home insurance, visit sainsburysbank.co.uk.