Cash-strapped homeowners reduce contents cover
Research from Kwik Fit Insurance (KFI) suggests that UK homeowners have reduced the value of their home contents cover by up to one-third over the past year.
The economic downturn is forcing consumers to save money wherever they can and the year long study of renewal patterns covering 24 major UK towns and cities, revealed that more than 50% of households had cut back on contents cover.
Swansea saw the greatest reduction, with policyholders downwardly revising their requirements by 31%.
Hull recorded an average drop in cover of 23%; Liverpool and Bradford an average drop of 22%; Sunderland 12.8%; Bristol 11.9% and Wolverhampton 11.4%.
The study also showed that those aged under 25 and people aged over 66 were the most likely to have made reductions.
However, it should be noted that in some areas of the country the trend reversed; Newcastle, Plymouth, London, Coventry and Nottingham all saw an average rise in the value of contents insured.
KFI’s managing director, Brendan Devine, says seeking to reduce costs is understandable but urges homeowners “to think carefully about their cover, since even a small percentage reduction can mean a few thousand pounds for which they may not be insured, if the worst comes to the worst.”
Earlier this week, KFI announced that sales of its home insurance policies increased by an incredible 65.8% in February taking the total number of policies held by the intermediary to 74,000.
Category: Home Insurance News, Insurance News
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