Beware of dumbing down your home insurance cover

Over the past year in order to save money, one in four people have cancelled or not renewed their home insurance. Sainsbury's Home Insurance is warning people not to go without home insurance as it could have disastrous consequences leaving them in further financial dire straits. To help pay for their home insurance, Sainsbury's Finance is urging people to spread the cost of cover over a year, something it does not charge customers for doing.  However, its research reveals that 68% of policies do.

Ben Tyte, Sainsbury's Home Insurance Manager, said: "In the current economic environment many people are looking to dumb down on their insurance or do away with it completely in order to save money.  However, this is a false economy because if disaster strikes they could be left in ruin.  Rather than risk inadequate cover, they should shop around for better deals - it is possible to find quality cover at a competitive price - and find a policy that does not penalise them for paying on a monthly basis."

However, when reviewing policies, Sainsbury's Home Insurance warns that it is very important to look closely at the quality of cover being offered.  For example, its research reveals that only 8% of home insurance policies offer unlimited buildings cover and only 12% offer a no claims discount of up to 30% or more.  Furthermore, less than one in ten (8%) policies provide no claims discount protection.  These are all features offered by Sainsbury's Home Insurance.

Sainsbury's shoppers are rewarded with double Nectar points on their shopping in store, online and in petrol filling stations for two years when taking out Sainsbury's Home Insurance. For example, customers who spend £50 a week with Sainsbury's and have Sainsbury's Home Insurance as well as a Nectar card would receive £52 worth of Nectar points a year.

About Sainsbury's Home Insurance:

As well as being competitively priced, the bank also offers an extensive range of cover and benefits.  This includes:

Unlimited buildings cover
Unlike some home insurers, Sainsbury's Bank does not apply charges for customers paying their premiums by direct debit
Maximum no-claims discount of up to 30%
No-claims discount protection
Cover for accidental damage - even by pets