Millions of households plan to cut their insurance cover
Posted on February 27th 2009
Households in the UK are planning to cut back on the level of their insurance cover, with some even thinking of cancelling their insurance altogether.
According to new figures some one million consumers have already cut their insurance cover for their house, car and travel. Another 5 million have plans to cut their insurance cover in order to save money in the next 12 months.
Of the people spoken to it is apparent that house insurance is the most likely to be cancelled with travel close behind.
However this may lead to a false economy for some people especially as house insurance covers flood damage, which some areas of the country need as a matter of course, with the average cost of a claim reaching £17,000.
Also what some homeowners may not realise is that if they have a mortgage secured against their property then leave themselves exposed to the risk of still owing the mortgage company and with no home if the worst happens.
The mortgage company would then put them onto their block insurance policy, which would generally be more expensive, with the cost added to their monthly mortgage payments.
An easier way for homeowners to reduce their house insurance costs is to use a comparison website like Insure My House where homeowners can compare house insurance from a panel of insurance companies.
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