Borrowers Forced to take out Home Insurance

Home insurance is an important cover to have as it protects you from a number of things including; fire, flood, explosion and storms.

The home insurance policy should also cover you for things such as; crashing cars, falling trees, lightening, vandalism, break-ins, and earthquakes and also for more bizarre events, such as; falling objects from an aircraft and rampaging horses. Something to look out for is that not all policies cover you for accidental damage so it is very important that you check you are covered for this.

According to a leading price comparison website, almost a fifth of UK homeowners succumb to pressure from their mortgage lender to take out home insurance cover with them.

A study showed that around 19 per cent of people took out home insurance cover with their mortgage provider because it appeared to be of quality and good value, however, 12 per cent of people claimed that they felt pressurised into purchasing the cover from their lender.

On top of these figures, one-third of the people questioned admitted that they had taken out the cover as it was more convenient for them.

It was pointed out by the comparison site that the cover was taken out with the same lender, so it could have been the case that it was the best deal for the customers involved. However, the site also reminded people that they should feel under no pressure from their lender as they are under no commitment to buy their cover from them.

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The home insurance policy should also cover you for such things as; car crashes, earthquakes and break-ins. A study has shown that a fifth of people feel pressurised into purchasing their home insurance from their mortgage lender. The study also showed that 19 per cent of people took out the home insurance with their lender as they felt that it was the best deal for them.

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