Right up until the moment you have to claim on it.
Despite recent rises in insurance costs caused by a hike in Insurance Premium Tax from 6.5% to 9% last November, it remains remarkably affordable.
Figures from the Association of British Insurers show the average annual premium paid for buildings and contents policy is £316, or just 87p a day. That’s less than the average price of a loaf of bread.
So its worrying to learn that many over-50s don’t have home contents insurance.
Almost a quarter of those aged 50 and over say they don’t trust home insurance providers to handle their claims fairly, according to research from insurer SunLife.
SunLife’s research also found that of those over-50s without cover, more than a quarter say it is because of the cost, with 17 % saying it is too expensive or that the cost of premiums outweigh the risk.
Almost a quarter say they don’t have enough contents to justify having cover and a fifth say they “don’t know” why they don’t have contents insurance.
Simon Stanney, general insurance director at SunLife, says he’s shocked that some over-50s are going without cover because they don’t trust the insurance companies, and this needs to be addressed.
He said: “It is worrying that as many as a quarter of over-50s don’t trust insurance companies and that some people are putting their homes at risk as a result.
“As an industry, we need to be doing everything we can to make the process straightforward and affordable for our customers.”
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