UK households that choose a home insurance policy based purely on price are putting themselves at risk from not having adequate cover and should take more than the cost into consideration says Defaqto.
Consumers are in danger of being under insured if they purchase a home insurance
policy because it has a cheap price tag, rather than reading the small print to see what cover it provides, and could be left footing the bill.
Defaqto and Halifax have teamed up to urge homeowners and tenants to make sure they are properly insured. "Although in these financially difficult times, the cost of insurance cover is an important factor, the cover provided must be at the forefront of the consumers mind." said Mike Powell, consultant at Defaqto.
"Finding out that your insurance policy doesn't cover you when you need to claim, could mean that the decision to save a few pounds was the most expensive mistake you could make." he added.
Mr Powell recommends that households compare home insurance quotes
not just by price but also by what level of cover they provide.
Lindsay Forster, head of products and marketing at Halifax home insurance
said: "We want to encourage people to choose the right policy for them and help them realise that with home insurance, one size does not necessarily fit all, and you often get what you pay for.
"It is essential for people to understand that buying on price alone can be a dangerous strategy, as they may find when they come to make a claim that they are not fully covered for all the necessary risks."
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