Money News
According to a recent study by Nationwide, many people are failing to obtain adequate insurance for their homes. 20% of those questioned don't have any buildings insurance and would not be covered in the event of damage caused by floods, storms, or worse, a house fire. Of those who do, almost 25% don't know what is covered under the policy.
Meanwhile, 14% haven't taken out cover for the contents in their homes, while 21% estimate the total value of their home contents to be between £10,000 and £20,000. This adds up to a significant number of items that many would be unable to afford to replace straight away. 17% of those with contents insurance admit to not knowing what is covered under the policy.
Breaking the numbers down further, 31% of those aged 35-44 don't know what is covered under their buildings insurance or whether they are covered at all. However, those aged 45 and over are more likely to have both buildings and contents insurance and claim to possess full knowledge of what is covered.
Regionally, it is people living in the North East (35%) who are least likely to be covered by buildings insurance and Londoners (23%) who are least likely to insure the contents in their home. On the other hand, those living in Wales (96%), the East Midlands (90%) and the South West (92%) are most likely to be insured for their home contents.
Robin Bailey of Nationwide said: "It is surprising that so many people are prepared to take such a gamble on their homes and personal belongings when you consider how much time and money we all invest in our homes. You never know what is around the corner and for that reason it is vital that people are prepared by having adequate insurance."
23 January 2008 © Moneyextra.com
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