Homeowners 'cutting insurance'

Research from American Express has found that homeowners are responding to the pinch of the credit crunch by cutting back on monthly expenses, often including insurance products.

Chris Rolland, head of the company's insurance arm, said: "It is worrying that people are planning to cut back on the policies that are designed to protect them during hard times."

However, while cutting back on some goods would be wise, cutting back on insurance policies could end up costing households far more in the long term.

Of course, buildings insurance is one of the most important insurance policies a person can own, but homeowners are required by law to take out a policy with a mortgage.

Contents insurance, while not a legal requirement, should not be forgotten as the cost of damage to a person's possessions can reach tens of thousands of pounds.

September 22^nd 2008

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