Home insurance cover reduced by cash starved Brits

One in four people have cancelled or not renewed their home insurance as Brits strive to save money in the recession.

Research by Sainsbury’s home insurance has found that a quarter of Brits are cutting back on their home insurance as they struggle with the effects of the recession.

With some adults cancelling the home cover completely, or failing to renew their policies, Sainsbury’s is warning that this is a false economy that could leave people with even deeper financial difficulties if disaster strikes.

Most mortgage lenders impose conditions that buildings cover is mandatory, however home owners are not required to insure the contents of their homes, although it is sensible to do so.

Rather than risk inadequate cover, people should shop around for the best insurance deals using comparison sites such as Confused.com and spread the cost over 12 months wherever possible.

Features such as unlimited buildings cover and no claims discounts will also help consumers find the best value home insurance cover, particularly at a time when many adults are feeling the pinch in the recession.

Some plans also come with additional benefits such as receiving double Nectar points on supermarket shopping when a home insurance policy is taken out with Sainsbury’s.