Homeowners fail to obtain adequate insurance

Many people are failing to obtain adequate insurance for their homes, according to research by Nationwide.

One in five (20%) of those questioned do not have any buildings insurance and would not be covered in the event of damage caused by floods, storms, or worse, a house fire. Of those people who do have buildings insurance, almost 25% do not know what is covered under the policy.

14% have not taken out cover for the contents in their homes, whilst the majority of those questioned (21%) estimate the total value of their home contents to be between £10,000 and £20,000. This adds up to a significant number of items that many would be unable to afford to replace straight away. 17% of those with contents insurance admit to not knowing what is covered under the policy.

Nationwide's insurance director, Robin Bailey, said: "It is surprising that so many people are prepared to take such a gamble on their homes and personal belongings when you consider how much time and money we all invest in our homes. You never know what is around the corner and for that reason it is vital that people are prepared by having adequate insurance.

"We believe it's important to provide home insurance that is not only comprehensive but also competitively priced. That's why we've recently re-launched our 'Refund the Difference' home insurance promotion. For customers switching to Nationwide, on an equivalent basis to ours, we will beat whatever customers paid for their home insurance last year, or refund the difference up to £100."

The research also revealed that almost one third (31%) of those aged 35-44 don't know what is covered under their buildings insurance or whether they are covered at all. However, those aged 45 and over are more likely to have both buildings and contents insurance and claim to possess full knowledge of what is covered.

Regionally, it is people living in the North East (35%) who are least likely to be covered by buildings insurance and Londoners (23%) who are least likely to insure the contents in their home. Those living in Wales (96%), the East Midlands (90%) and the South West (92%) are most likely to be insured for their home contents.