Homeowners run insurance risk

Nearly 3.5 million UK homeowners are putting their homes and possessions at risk by not having adequate home contents and buildings insurance, according to research from MoneySupermarket.com.

The comparison site found nearly one in 10 homeowners (nine per cent) are missing out on some form of home insurance and only have either buildings or contents insurance – not both. Nearly 1.5 million admit to having contents cover only, while 1.3 million only have buildings insurance. A further two per cent, nearly 650,000 homeowners, have no form of buildings or contents insurance.

Peter Harrison, from MoneySupermarket, said: “The recent spate of bad weather and flooding highlights just how important it is to make sure your home is fully covered. Homeowners without adequate buildings and contents insurance are taking a huge risk by leaving their homes unprotected, and are potentially storing up a financial catastrophe in the event of a major incident which could even leave them homeless.

“At the very least, those homeowners with a mortgage on their property should have a suitable buildings policy in place since the terms and conditions of the mortgage agreement will require it.

“Although it may be tempting to take either buildings or contents cover, the chances are you may need to make a claim against both of them. For example, if your home was flooded during storms, you would have to claim for any damages to fittings and fixtures such as electrics or a fitted kitchen through your buildings insurance, while a claim for damage to goods such as televisions and furniture would be made through the contents policy.”

The MoneySupermarket research also found people who rent are also taking big risks when it comes to covering their possessions, with a third (33 per cent) having no cover. Additionally, a further seven per cent don’t know if they have any cover.