Over 50pc of homeowners unaware of insurance

Over half of the UK's homeowners know "not much at all" about their home insurance policies, it has been discovered.

One insurance provider carried out a survey which found that 54 per cent of respondents admitted that they knew ''not much at all'' about their policies.

The lack of understanding of a person's home insurance policy could mean the policy is unsuitable for the amount of cover required to protect the home, or its contents, and not checking up on a policy could lead to severe financial problems in the event of an accident.

Often, homeowners will continue to update their insurance annually, but not increase the value of their payouts in line with home improvements.

"So often a homeowner will upgrade their home and never update their home insurance policy," said Carlos Lagomarsino, CEO of the home insurance provider responsible for the research.

"When the listed replacement value is no longer enough to rebuild their home to the new standards, the home owner is often left underinsured."

August 19^th 2008

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