Homeowners losing £40m on insurance
May 15, 2007 by admin
Filed under News, News-Insurance
Homeowners who fail to shop around for home and life insurance are losing out on a combined £40 million per year.
The figure has been put forward by the Post Office which says many Brits simply get their insurance from their mortgage lender due to convenience.
Around eight million people in the UK opt to buy their insurance from the same firm that gives them their mortgage, with one in ten people incorrectly believing that it was compulsory that they do so.
A further one in 20 were convinced that their loan would be at risk if they did not also buy insurance, while 63 per cent chose their mortgage provider’s insurance because it was convenient to do so.
“Convenient doesn’t always mean cheap,” said head of insurance at the Post Office Phil Ashkuri. “Many homeowners don’t realise taking out buildings and contents insurance with their mortgage lender is generally not the best value deal. And it’s not compulsory for securing their mortgage.
“Our advice is shop around as there are better home insurance deals out there from standalone providers.”
The majority of buyers will be able to find a better deal by getting their insurance from a different source to their mortgage, loan or credit card provider.
