According to Sainsbury’s Home Insurance, almost three million people have misconstrued ideas about buildings insurance. People often believe that when buying a house they must buy buildings cover from their mortgage provider in order for their application to be accepted.
Indeed, the company found that 48 per cent of people with building insurance revealed they had bought cover directly from their mortgage provider. Sainsbury's is concerned that if people are unaware that they are entitled to shop around for buildings cover, they may not end up with the most competitive deal.
Head of home insurance, Steve Johnson, said: "Buying a home is often a hectic time and for many people it may seem tempting to just purchase buildings cover from their mortgage provider."
Its research shows that just 28 per cent of those who bought buildings cover from their mortgage company felt they had been offered the best policy. While 18 per cent were under the impression they needed to buy it from their lender in order to secure their mortgage deal, 13 per cent opted for convenience when offered a quote then and there. A further seven per cent simply could not be bothered to compare offers.
An overwhelming 8.55 million people – 26 per cent of homeowners with buildings cover – failed to obtain any additional quotes when they bought buildings and/or contents insurance. Meanwhile, just 16 per cent only applied for one other quote.
More female homeowners (16 per cent) with cover admitted not to obtaining any further quotes than male (7 per cent). Over 65s were the least likely to compare deals, with 37 per cent not bothering to get additional quotes compared with 20 per cent in the 25 to 34 age group.
"People really should shop around to check they’re getting the best deal. Despite the fact that home insurance premiums are reportedly on the rise, there are some great deals out there if people take the time to evaluate what’s on offer," said Mr Johnson.
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