First-time buyers putting belongings worth £1.5bn at risk by not having adequate contents insurance
Guesstimating how much your iPhone, Michael Jackson vinyl collection or limited edition Jimmy Choo shoes are worth could put your cherished belongings at real risk, new research has revealed.
A survey carried out by The Co-op found that two-fifths of first-time buyers do not purchase enough contents insurance, and more than 50% “guesstimate’ important details when obtaining a quote -leaving them under-insured.
Half of first-time buyers did not budget for home insurance at all, which means that over a quarter (28%) of new homeowners who had brought their home in the last five years did not have any home insurance in place. Reasons cited for the lack of insurance were that buyers had run out of money (29%), did not think they needed it (24%), or were too busy to sort it out (10%).
Caroline Hunter, head of home insurance at the Co-op said: “The research highlights not only a widespread confusion among first-time buyers when it comes to assessing the type of home insurance they require for their property, but it also demonstrates many individuals have an inadequate level of cover or are leaving themselves exposed by purchasing insurance too late or not at all.”
She added that as many first-time buyers were likely to have previously rented a property where their landlord took care of the insurance, they may not be aware of their responsibility to have it in place when becoming a homeowner for the first time.
The survey found that the top five details guessed when obtaining home insurance quotes were:
1. Cost of rebuilding the property
2. Age of property
3.Type of door locks installed
4. Value of contents
5. Whether the property is in a Neighbourhood Watch area