Tuesday 24th of March 2009
Mounting debts are forcing homeowners to forego insurance that should be seen as a necessity, it has been argued.
A study from uSwitch.com has found that 57 per cent cannot afford to pay home contents insurance in addition to compulsory bills, while 41 per cent of respondents have no money left due to the number of debts they owe.
But the price comparison site urged consumers to take out protection, as the long-term debt management problems that could arise without it are likely to outweigh the cost.
Insurance expert Mark Monteiro explained that renters and homeowners alike are attempting to cut back to the pressures of the recession.
However, he noted: "With recent crime figures revealing domestic burglaries to be on the up … consumers are running the gauntlet by putting themselves increasingly at risk simply to make a short-term saving."
Meanwhile, Halifax has outlined the importance of ensuring garden equipment is also covered, stating that garden theft cost the typical victim £433 last summer.
