British consumers have been urged to maintain their home insurance cover .
The economic downturn is causing some people to make the decision to lower the amount of protection they have in place, according to research carried out by the British Insurance Brokers Association (BIBA). The research found that cutbacks on policies such as home and car insurance cover included customers reducing the sums they were insured for and increasing excesses.
However, BIBA warns this could be a bad move in the long term. A spokesman said: “Consumers and businesses could be putting themselves at financial risk by cutting out or reducing key areas of insurance protection.”
The company also advises that home insurance could be particularly important as winter draws in as it found that many as two million properties in the UK may have been affected by the cold weather in 2009, with burst pipes being responsible for many insurance claims last winter.