Property owners could be placing themselves at risk of incurring “huge costs” in the future, it has been suggested.
Figures from Norwich Union have shown that 86 per cent of homes are “significantly underinsured”, something that may lead to people seeking debt help if anything happens to their house.
Mike Colemans, an spokesperson for the insurer, explained that homeowners would have been able to borrow cash in the past to cover any expenses created by an incident.
However, he noted that this may not now be possible in the wake of the economic downturn and urged people to ensure they are adequately protected.
“Having accurate sums insured on a property is vital to guarantee receiving the full amount in the event of a claim,” he commented.
Meanwhile, Halifax Home Insurance has advised customers to protect their valuable garden equipment, as thefts of such goods increased by 63 per cent last summer.
By Jamie Price