British households that purchase a home insurance policy based on price could be putting themselves at risk of not being adequately covered, according to Defaqto .
Consumers could find themselves underinsured if they choose a home insurance policy because it is cheap, instead of reading the fine print to see what is provided by the cover. Defaqto and Halifax have joined forces to encourage homeowners and tenants to make sure they are properly insured . Mike Powell, consultant at Defaqto, said: “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.”
Lindsay Forster, head of products and marketing at Halifax home insurance added that it was essential for people to understand that buying on price alone could be a dangerous strategy as they could find that when making a claim, the policy did not fully cover them for all the necessary risks.