Recession won't deter Brits from home insurance

Many people are having to cut back on spending as the recession continues to hold the country in its grip. But the good news is that, so far, people are not willing to cut back on essential home insurance as a means of saving money.

According to a survey carried out by Moneysupermarket.com, Brits are refusing to stop paying for their home insurance as a result of the recession. It found that only a tiny 4% would consider cancelling their insurance to cut back on spending.

However, people were more inclined to cut back on insurance that they did not consider essential. 26% of those questioned stated that they would consider cancelling their home appliances insurance in the next 12 months, and 31% said that they would consider cancelling their mobile phone insurance.

The insurance expert at Moneysupermarket.com, Steve Sweeney, said that this was good news as it would “prove a false economy” to cut back on the essentials. Although people will save a bit of money in the short term, should they need to make a claim in the future, they would find themselves in a dire situation. However, smaller costs such as mobile phone insurance would at least have smaller financial implications were something to go wrong after cancelling the insurance.

Other areas that people would be more willing to cut back on include LPPI (Loan Payment Protection Insurance) and MPPI (Mortgage Payment Protection Insurance), with 25% and 6% respectively willing to consider cancelling these. 12% of people would also think about cancelling their annual travel insurance as a way to save money. However, possible cuts should be carefully considered before any decisions are made because they could lead to serious financial repercussions in the future.