Consumers who find themselves in financial difficulties should change their home insurance providers rather than cancel their cover altogether, advises one expert.
Neil Munroe, external affairs director for financial advice service Equifax, said that in order to get the best deal, it is essential that people match up what they already have on their current cover with any new deals they are looking at. Consumers will then be able get a good offer and possibly get more for the same price or less.
Mr Munroe added that it is important not to cut out any aspect of their current cover because even if they have not used it yet, it could become vital in the future.
His comments come after statistics published by The Nottingham Building Society found that 22 per cent of homeowners cancelled their cover last year in a bid to save money . It warned that for many people this could create a false economy, where they end up paying out more in the long run to replace stolen items or for repairs.