'Don't buy on price alone', consumers told

Consumers are being warned not to let the price of a home insurance policy dictate which deal to choose as the credit crunch tightens belts across the country.

Mike Powell, a general insurance consultant at one financial services company, said: "Although in these financially difficult times, the cost of insurance cover is an important factor, the cover provided must be at the forefront of the consumer's mind.

"Finding out that your insurance policy doesn't cover you when you need to claim could mean that the decision to save a few pounds was the most expensive mistake you could make."

Often an insurance policy will be cheaper if it has a higher excess, which is a more reasonable gamble to take but could still financially cripple a household in these times.

As such, only by picking the most comprehensive insurance at the right price can homeowners truly obtain peace of mind regarding the safety of their possessions.

October 02^nd 2008

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