Reluctance to shop around for a good deal on home insurance could be costing UK consumers millions, says a survey.
Research by the Post Office revealed that an apathy to change plans to get a better deal, and confusion over insurance plans, means that home owners are losing out and being taken advantage of by mortgage lenders looking to cash in.
Head of home insurance at the Post Office Claire Oldstein, said: "Changes to the law six years ago prevented lenders from forcing homeowners to buy their home insurance through them. However, nearly half of consumers still seem to be doing so. Mortgage providers don’t always offer the best value for money when it comes to home insurance, so it really is wise to explore other options."
The research found that almost four in ten homeowners looked to their mortgage providers for their buildings and contents insurance, despite the possibility of finding deals up to 40 per cent cheaper elsewhere.
A recent survey by esure.com found that Brits have increasingly valuable items in their homes as they indulge expensive gadgets. It also found that people seriously underestimate the value of the contents of their homes, making home and contents insurance low on their list of priorities.
The survey estimated that people have $4.1 billion worth of expensive, uninsured gadgets in their homes, as most people don't upgrade their insurance when they acquire expensive items.
Research by the Post Office into home insurance apathy coincides with the launch of its insurance sale, which is offering £25 off home insurance policies until the end
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