'One in four' does not have home contents insurance

Posted : 15-10-2007

An estimated one in four people do not have any home contents insurance as it is often neglected by those on lower incomes, an expert in the sector has said.

Kelly Ostler, a spokesperson for the Association of British Insurers (ABI), stated that many homeowners are required to have buildings insurance by their mortgage provider and this is prioritised over contents cover.

However, for those who do purchase home contents insurance, prices can vary depending on the crime rate in a specific area.

Ms Ostler explained that if houses in a particular street have been burgled numerous times, then premiums will reflect this risk - but depending on the type of crime committed it may affect other insurance costs such as motor cover.

"Some crime might be car crime so it would affect your motoring premium instead of your household insurance," she added.

In related news, recent research from Abbey insurance discovered that damage in the home caused by heating appliances, such as electric blankets, tops £3.3 million each year.


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