LoginSubscribe to Alerts

First-time buyers putting belongings worth £1.5bn at risk by not having adequate contents insurance

Posted 7 July 2015

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

Rebuilding a house

 

 

 

 

 

 

 

 

 

 

 

2. Age of property

Old house

 

 

 

 

 

 

 

 

 

 

 

3.Type of door locks installed

Door lock

 

 

 

 

 

 

 

 

 

 

 

4. Value of contents

Inside of an apartment

 

 

 

 

 

 

 

 

 

 

 

5. Whether the property is in a Neighbourhood Watch area

Man peering out behind curtain

 

 

 

27 May 2021
Home insurance is a necessity but it’s important not to go for the first policy you see – there are a number of points to consider...Read more
Getty Images
30 March 2020
The ABI (Association of British Insurers) is reassuring people that its home insurance members are offering enhanced help and support to all thei...Read more
What affects your mortgage life insurance?
16 December 2019
If you have a mortgage, life insurance will give you the peace of mind that you’re covered should the worst happen. Here’s what affects the cost ...Read more
Sign up for email alertsGet the latest properties and updates sent directly to your inbox daily, weekly or immediately you are in control.
Subscribe to Alerts
New Homebuyers Guide
Together with Redrow, we’ve created a guide to take you through the whole process, step-by-step; from house-hunting to past moving-in day. There are handy tips on how to anticipate and avoid complications, and some advice on ways you can successfully purchase your ideal new home.

Click here to see your activities