Lloyds TSB pledges support for home insurance customers
Lloyds TSB has pledged to waive home insurance customers' premiums for up to six months if they are affected by redundancy. The move follows a recent meeting between the Home Office, Association of British Insurers (ABI) and leading insurance firms to discuss how the industry might best support policyholders through the recession.
The waiver will be available to all customers who purchase a home insurance policy in branch from today, and has been introduced as new research from Lloyds TSB reveals the extent of people's concern about their current financial situation and job security. Sixty per cent of those surveyed said they were worried about their financial circumstances, whilst one in four (twenty six per cent) believed their job could be at risk over the next twelve months.
Such widespread concern and cost-conscious sentiment is forcing Brits to tighten their belts, with three quarters (seventy five per cent) of those questioned saying they are actively reviewing annual commitments and cutting back on household bills wherever possible. The need to immediately reduce outgoings is clear, with two in five (forty three per cent) admitting that they would be likely to cancel a service or subscription without even shopping around to see if savings could be made by moving to a more suitable product or provider.
And it's not just a case of luxuries coming under fire. A worrying 15 per cent of those questioned claimed to have cancelled home insurance policies mid term over the last year in an attempt to cut costs while a further ten per cent admitted they would be prepared to do so if their financial situation deteriorated. One in eight (13 per cent) said they were unlikely to renew their home or motor insurance when it next expires.
In spite of this, four in five (79 per cent) admitted they would have no other way of replacing their belongings if the worst happened and they were burgled or flooded.
The figures will be of concern to households around the country as sixty five per cent believe that, as a result of the recession, their home is more at risk of being burgled. These fears are supported by official Home Office crime statistics which show that theft from the home has increased by four per cent.
Mike Canniffe, Lloyds Banking Group, Retail Banking Insurance Director, said: "Our pledge offers extra breathing space to British homeowners who increasingly find themselves in a ‘Catch-22' situation. Despite feeling more concerned about the security of their homes, many are having to seriously consider cutting back on household essentials, such as insurance, just to make ends meet.
"In these uncertain economic times many of us are making sacrifices, but it's alarming that so many are prepared to forego the valuable safety net insurance offers. Shopping around for the best deal can deliver valuable savings without losing that protection. We're committed to supporting our customers and hope that this added benefit will offer a helping hand when they need it the most."