Unemployment could ‘hike up’ insurance premiums

Those suffering from unemployment during the recession and struggling with debt management could find themselves being forced further into debt if they want to continue insuring their homes.

Price comparison site Confused.com has issued this warning to consumers who may be unaware that insurance providers take varying factors into account when conducting risk assessments for home insurance premiums, such as the employment status of the homeowner.

Darren Black from the company remarked that this could “come as a surprise to many people” and advised them to ensure that “paying premiums is not overlooked” as missing instalments could jeopardise the policy.

Those recently entering into unemployment must make sure they notify their providers, Confused.com suggested.

Earlier in the month, Citizens Advice released statistics revealing that the number of people concerned about mounting debts and debt management contacting their services had risen to over 9,000 a day as a result of the recession.

By Sarah Adie