Poor attitude to home insurance to increase debt worries?

A lackadaisical attitude to the necessity of home insurance in the UK could result in increased debt fears for many, new research has indicated.

Carried out by The Co-operative Insurance and the homelessness charity Shelter, the study revealed more than one-fifth of households in Britain have no such cover in place.

This equates to 5.41 million homes lacking protection against accidents related to their properties – which could prove costly.

Although insurance claims are most common during the winter months – often caused by adverse weather – people appear to be turning down the opportunity to equip themselves for any mishaps.

A number of individuals have shunned cover altogether or have chose not to continue their policy at renewal, with 42 per cent of respondents claiming they cannot afford to pay the premiums.

The investigation found 68 per cent of those questioned are concerned about their financial situation, with 28 per cent having more outgoings than they do incomings – with the average deficit standing at £165.

In addition, more than a quarter (26 per cent) said they do not feel confident they can settle their monthly bills.

It was also found 22 per cent of households do not believe home insurance is important, while 18 per cent claim they do not have any items worth paying protection for.

Head of home insurance at The Co-operative Insurance Lee Mooney observed: “A worryingly high percentage of [the] population [does] not have home insurance and are leaving themselves open to much greater risks and expenditure in the long run.”

A recent study carried out by The Co-operative Electrical highlighted a number of under-35s are set to borrow money in order to see them through the festive period this year.

By Joe White