Sainsbury’s survey says cuts to insurance cover is damaging
Sainsbury's Finance has added to reports that people are cutting back on insurance with a survey estimating that nearly one million people have cut back on home insurance.
The survey estimated:
- 946,000 people have either cancelled their home contents insurance or reduced the amount of cover they have in the last 12 months
- 526,000 people are estimated to have reduced the level of home contents cover
- 420,000 have scrapped their contents policies altogether.
- 700,000 people reduced or cancelled their buildings policy in the last 12 months
- 13,000 claims between the end of December and the end of January alone for water-related damage to their properties. The average value of these claims was over £2,000.
- 579,000 people have given up or reduced their car insurance cover
- 450,000 have given up their pet insurance and travel insurance policies respectively.
Neil Laird, Sainsbury's home insurance manager, said: "Given the financial state we're in it's inevitable that people are going to be looking to make cut-backs, but it's a real concern when those cut-backs leave them vulnerable to far greater expense down the line.
"It can be tempting, with some insurance policies, to simply hope for the best. But policies vary a great deal, and cancelling your cover or opting for a cheaper deal that doesn't offer adequate cover could have serious financial consequences when something goes wrong. Insurance should be viewed as a necessity, not a luxury."