Sainsbury's warns on underinsured homes

Posted : 22-11-2004

Sainsbury's Bank has revealed that low cover options could be fuelling the problem of homes being underinsured.

Research commissioned by the bank has found that one in three home insurance policies offer minimum contents cover of just £15,000 or lower and Sainsbury's argues many opt for these policies in order to keep their premiums down without thinking about the consequences of being underinsured.

However, the study also highlights the importance of shopping around for a bargain and the bank says that looking beyond traditional home insurers can help homeowners find improved cover at lower cost.

"It is very easy to under-estimate how much your home contents are worth," warns Robert O'May, home insurance manager at Sainsbury's Bank.

The problem of having lower limits of cover is that there are much higher chances that a claim will be turned down.
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