Home insurance 'not to be overlooked' during slump
During the current economic slump there have been many reports on households tightening their belts to avoid slipping into the red during the long months, but the Times has now published a report suggesting ways to save cash.
Among suggestions such as informing a mortgage lender of financial difficulty and switching to an interest-only mortgage deal, the newspaper has suggested extending a mortgage deal from 25 to 30 or more years, to reduce monthly payments.
Although a restriction on spending has been touted as one of the most direct ways to save cash throughout the month, it must be highlighted that saving money through a decision not to invest in home insurance may be a false economy.
Contents insurance can protect a homeowner or tenant from the financial fallout of repairing or replacing their goods in the event of a fire, flood, theft or other accident.
Buildings insurance can save a homeowner simply hundreds of thousands of pounds in the event of heavy winds that could damage a home, floods, fire or car accident.
One of the most direct ways to increase income, on the other hand, was to take on a lodger, the Times said.
August 29th 2008