Almost 1.5 million property owners in the UK are putting their homes at risk by having no insurance with those in London and the South East of the country the least protected, research shows.
One in 16 UK property owners, some 6%, admit they are missing out on some form of insurance and only have either buildings or contents insurance, not both, the research from comparison site, moneysupermarket.com shows. This doubles to one in eight, 12%, of younger homeowners aged between 18 and 34.
Half a million homeowners admit to only covering contents, while 750,000 have buildings insurance only and a quarter of a million homeowners admit to having no cover at all.
The survey also reveals that 11% of property owners in London and the South East are putting themselves at risk of costly payouts despite the fact that buildings and contents insurance can cost less than £200 a year.
‘Inadequate cover is a serious problem for many home owners and is a very dangerous position to be in,’ said Julie Owens, head of home insurance at moneysupermarket.com.
‘Home owners seem to be taking the either/or approach by foregoing some part of their home insurance, but having both buildings and contents cover is important and not as costly as many may think,’ she explained.
Owens points out that common incidents such as accidental damage, burglary or loss of possessions away from the home can lead to very expensive bills without contents insurance and most mortgage providers will insist you have buildings cover before they lend to you.
‘Those quarter of a million homeowners with no cover at all are taking a huge unnecessary risk. Problems such as subsidence, burst pipes, personal liability and even boiler breakdown in some cases could land you with a bill well into the thousands of pounds,’ said Owens.
‘Giving yourself peace of mind by having appropriate buildings and contents insurance is well worth it and doesn’t have to cost a lot. I would recommend shopping around for the best deal to suit your needs, buildings and contents insurance is available from as little as £169 a year,’ she added.
‘As well as shopping around, opting to pay for your home insurance monthly is a good way of keeping your initial outlay for home cover down. Splitting the cost in to smaller payment amounts can also make things easier and there are some home insurance providers who do not charge an APR for opting to pay in monthly instalments,’ concluded Owens.