Millions of homeowners in the UK are risking financial trouble by not taking out adequate home insurance, or failing to take out any cover at all, according to research conducted by by Direct Line .
The study found that 6.8 million households are underinsured, with homeowners undervaluing the worth of their possessions when they take out their contents and building insurance . Further, over five million homes do not have any contents insurance at all.
Andrew Morrell, head of home insurance at Direct Line, warns that while cash may be tight for many Brits as a result of the economic downturn, home insurance is still essential. He said: “No one wants to think about the prospect of losing all their possessions. Unfortunately it is far too easy to turn a blind eye to the true value of your home’s content.”
Those with annual insurance are advised to inform their provider if they make any purchases that could affect their cover, including high value TVs or laptop computers .