It estimates that five million Britons lose £600 million altogether each year due to choosing uncompetitive home and life insurance deals.

Homeowners could be making the wrong choice of insurance product due to a lack of information, the survey suggested, with 12 per cent of people believing they were obliged to buy insurance from their mortgage provider.

Convenient doesn’t always mean cheap,” stressed the Post Office’s head of insurance Phil Ashkuri.

“Taking out buildings and contents insurance with their mortgage lender is generally not the best value deal” when compared to rates from a standalone provider, he added.

The Post Office, which began offering insurance in 2005, has drawn up 500,000 customer policies over the past two years.

It is planning to quadruple its insurance market share, with an emphasis on car and home insurance, over the next five years, according to a report in the Times.

Find out more about Post Office home insurance

© Adfero Ltd