A study by the Co-operative bank has shown that nearly half of all first-time buyers do not factor in the cost of home insurance in their budgets.
In the last five years, 28 per cent of first-time buyers have ended up without home insurance because they had failed to include it into their budget when they bought the house. For those who did successfully get home insurance, 13 per cent were reported to have underestimated the cost; one in ten expected the cost to be less than £100.
Other mistakes frequently made by first-time buyers included not sorting out insurance until all of their possessions had been moved into their new home, not having contents insurance, and also providing information for a quote without knowing all of the answers required.
This is primarily due to a lack of understanding about the necessity of home insurance and how it works. For example, 34 per cent did not know that building insurance was a minimum requirement when they make their mortgage offer.
“The research highlights not only a widespread confusion among first-time buyers of all ages when it comes to assessing the type of home insurance they require for their property, but it also demonstrates that too many individuals have an inadequate level of cover or are leaving themselves exposed by purchasing insurance too late in the buying process, or worse, not at all,” said Caroline Hunter of The Co-operative Insurance.
She urged people to remember about building and contents insurance, as well as ensuring the right information is submitted when applying for a quote.