A 22% increase in people not renewing or cancelling home insurance has insurance brokers worried.
Graeme Trudgill, corporate affairs executive at the British Insurance Brokers Association (BIBA), has commented that it is extremely risky for people to scrimp home insurance to try and save money. “Of all the insurances that you do choose, the household ones and the motor ones are an absolute must, so we really do recommend that you buy them,” Trudgill said.
Home insurance covers most of a person’s worldly possessions, and scrimping to save the typical monthly premium of £12 is a false economy.
As economic conditions tighten, households are looking for where to cut back, and some are choosing to dispense with house and contents insurance payments, trusting that they will not fall victim to burglary, fire or floods. However, it may be the very combination of current conditions (recession and climatic change) that makes insurance against theft and flooding even more necessary.
Doing without the few pounds a month that pays for home insurance may be short-term thinking, as the consequences of the loss of your home and all your possessions may be so severe that it cannot be recovered from.