Alarming Number Of Consumers Without Buildings Insurance

A lack of home insurance could place homeowners at financial risk, it has been suggested.

Following heavy storms battering parts of England and Wales in recent days, Sainsbury’s Home Insurance reports that some 1.78 million Britons do not have any form of buildings insurance cover. More than a third (39 per cent) of these people stated that they think it is an unnecessary purchase, with two per cent of respondents reporting that they cannot afford such cover. Meanwhile, an estimated 656,000 consumers are unaware of whether or not they have this type of insurance.

Research from the financial services provider revealed that young homeowners are especially likely to lack insurance for their property. Some eight per cent of 25 to 34-year-olds, or around 395,594 individuals, were shown to not have cover, with seven per cent of consumers between the ages of 17 and 24 also indicated as not protecting their home.

However, it is older people who are the most likely to not have taken out this type of premium. An estimated eight per cent of the over-65s are without a buildings insurance policy. This proportion equates to 609,894. Conversely, just one out of 100 45 to 54-year-olds - some 53,075 - are without cover.

Should consumers find that their home has been adversely affected by the elements, a lack of buildings insurance may mean they have to shell money out of their own pockets to pay for repairs. This could lead to them encountering difficulties in meeting other areas of financial expense. Such areas may include loan and credit repayments and utility bills.

Commenting on the findings, Neil Laird, home insurance manager for Sainsbury’s, said: “Thousands of homes could be at risk from storms this week so it’s alarming to see so many without buildings insurance. The growing number of weather-related instances really highlights the importance of having adequate cover in this area and unlimited buildings cover ensures peace of mind that you won’t be left underinsured should the unthinkable happen.”

Furthermore, the study also showed that women are more likely to not have building insurance than men. Sainsbury’s pointed out that 722,000 males admit to not having cover, in comparison to some 1.055 million of the opposite sex.

And with bad weather reported to continue to strike Britain over the coming days, the insurance provider stated that homeowners should keep drains clear and ensure sandbags are kept on hand to protect their property from the threat of floods. Consumers were also advised to check their insurance cover to ensure that outbuildings such as garden sheds are protected.

Following flood, fire or storm damage, those looking for an effective way to finance repairing their property may wish to consider taking out a homeowner loan. In applying for this sort of loan, borrowers may not only be able to afford the cost of purchasing materials but can also hire qualified professionals to carry out construction work. Furthermore, the financial assistance that a home loan provides could help consumers to purchase an adequate buildings insurance policy. The loan might also be helpful for those looking to reduce their energy usage levels.

Last year, Neil Marshall, chief executive of the National Insulation Association, claimed that the winter months provide an “ideal time” for homeowners to have lofts and cavity walls insulated. It was claimed that this type of home improvement costs 500 pounds.

Loan Arrangers providing you with breaking homeowner loans news.