A new survey looking at how homeowners buy buildings and contents insurance by Santander has uncovered some staggering statistics:
- 60% of homeowners have suffered accidental damage or theft
- 40% did not have adequate cover and had to find £200 or more out of their own pocket to cover the cost
- 60% of homeowners failed to read their insurance policy
- 25% buy the cheapest home insurance policy regardless of the cover provided
The bank says many homeowners pay out for cheap buildings and contents insurance that fails to pay out enough to cover the true cost in four out of 10 claims.
The most common claims dealt with by the bank’s underwriters included damage to carpets, rugs or upholstery – reported by 40% of homeowners.
Just over 20% have had TVs and DVDs harmed or stolen, and 19% accidentally ruined their furniture.
Loss or damage to gadgets like iPads, tablet computers and phones outside the home was reported in 9% of claims another 9% have lost or damaged camcorders, camera or sports equipment.
Adults cause the most damage – confessing to around 30% of claims, while children are blamed for 11% and thieves for 29%.
Although those with inadequate insurance paid out an average £200 as a result, a fifth of them ended up paying more than £500 because their home insurance failed to do the job.
The 47% of homeowners admitted skimming through their insurance policy without understanding the details, while 10% did not bother looking at the policy booklet.
Bank spokesman Colin Greenhill said: “While customers obviously want good value from their home insurance, the best value policy is the one that actually provides comprehensive cover when things go wrong.”