Concern As Homeowners Cut Home Insurance To Save Money

Homeowners trying to save money are delaying home maintenance work but are there other ways to help your finances?

A survey commissioned by Gocompare.com shows nearly a third of respondents are delaying home maintenance and decorating jobs to save money, while 22% are putting off fitting a new kitchen and 17% a new bathroom suite.

Whilst not carrying out home maintenance and renovation projects were identified as key areas to save, of concern is that 8% of people would consider not renewing their home buildings insurance and another 8% would consider not renewing their home contents insurance.

Phil Paterson-Fox, Gocompare.com’s head of home services, commented, “In the current economic environment it is a good idea to review your finances and cut back on unnecessary spending – but it is important that in order to save money now, you don’t make false economies.

“Homeowners need to think carefully about the maintenance jobs they are putting off. While it may be ok to delay cosmetic redecorating jobs, essential repairs should not be ignored.  Delaying structural repairs – a leaking roof for example, may lead to more damage and a bigger bill for repairs in the long-run than if it is dealt with promptly.”

Phil continued, “People should also think very carefully before deciding not to renew their home insurance. While it is not a legal requirement to insure your property, it is usually compulsory to have buildings insurance if you have a mortgage on your home.

“The cost of rebuilding a property after fire, flood or subsidence can run into tens of thousands of pounds, so even if you own your home outright, you need to consider what you would do if the worst happened.   Similarly, before stopping your home contents insurance you need to think about whether you can afford to replace lost or damaged goods.

Shopping around for home insurance using a comparison site is quick and easy and can save hundreds of pounds.”

MoneyHighStreet comments “We totally agree that in this current climate reviewing your personal finances will be a priority for many and that simply opting out of home insurance cover is not necessarily the best way to save some money.

“Equally though, selecting the cheapest home insurance may not be your best option. It is important to buy insurance that provides the cover you require, otherwise in the event of needing to make a claim you may find it won’t be paid.

“If for example you have high value jewellery in your home, make sure you have an insurance value limit that is high enough to cover it – both for any single item that is of high value and for your items collectively.”