Tuesday 18th of January 2011
Adults in Britain who are so deep in the red that they are thinking about asking individual voluntary arrangement questions to alleviate their financial burden could find undervaluing their home contents may be adding to the strain.
New research from Direct Line has found over £200 billion of such items are at risk because of this.
The study revealed 26 per cent of people with contents cover are underinsured by around £20,000 - which equates to a total of £138.5 billion.
A further 20 per cent have no insurance in place, adding an extra £74 billion to the total.
Head of home insurance at Direct Line Andrew Morrell said: "There is no doubt that recession-hit Brits have a lot on their minds at the moment - but the importance of home contents insurance shouldn't be underestimated."
The figures come after Moneysupermarket.com warned many households will face higher-than-expected energy bills next month as a result of the coldest December on record.
By Hayley Jones
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- Britons 'changing attitudes' towards debt management
- Homeowners 'more concerned with debt management'
- Low interest rate 'contributing to debt management efforts'
- Debt management growing in importance, survey finds
- Debtors 'likely to be hit' by reform changes
