Cutting back on home insurance ‘false economy’

Nottingham Building Society has emphasized the importance of home insurance. This follows the revelation in the Government's recent Family Expenditure and food survey that a shocking one-in-four UK households have no home and contents insurance at all.

Last year alone 22% of Britons cancelled their home contents insurance and 17% cancelled buildings cover in order to make ends meet.

The current economic climate is having an effect on most of us. While Brits are shopping around and cutting back, it's important to ensure that any compromise does not mean losing something that is valuable: for example cutting back on household insurance could be a real false economy.

"Not having any or adequate household insurance could mean you having to pick up the financial expense of restoring your home if some damage should happen, whether that may be burglary, flood or fire. Having household insurance in place to cover this possible expense far outweighs the cost saving of your monthly insurance payments, commented Lorraine Giddings, head of the branch network for The Nottingham.

"We understand many people who cancel their home insurance do it because they don't think they can afford the payments. However, they may not realise that they may be able to save a lot of money by switching their provider, added Lorraine Giddings."

Of those that do pay for cover it is estimated the average household under-insures the value of their home contents by a massive £9,000.

If you have not updated your home insurance in a while, then you may be underinsured, a problem that could cost you thousands should something happen.

"It is important to check your home insurance frequently - preferably at least once a year- and also when you make changes to your home like adding a new conservatory. And if you have recently got married you could also be at risk of underinsurance, due to the sudden rise in possessions immediately after a wedding advises, Lorraine Giddings.

To encourage people to review the cost of their home insurance and make sure that everyone has adequate cover The Nottingham is offering to give up to £75 cashback to new customers if it can't beat the amount you pay for your existing policy.

To find out more about this offer, visit thenottingham.com.