4th Feb 08
New research conducted by Sainsbury’s Home Insurance reveals that confusion abounds in the home insurance marketplace, with 2.94 million people believing that they had to buy their buildings insurance from their mortgage lender in order to secure their mortgage.
The findings underline the dominance mortgage lenders have on the home insurance marketplace, with 48 per cent of all those with building insurance saying that they have purchased cover directly from their mortgage provider. This failure to shop around for their home buildings policy means that many homeowners could be missing out on great deals.
Only 28 per cent of people with buildings cover purchased from their mortgage provider believed that their lender had offered them the best deal. Almost one in five (18 per cent) believed that they had to purchase it from their mortgage provider to secure their mortgage; 13 per cent went with their lender because they received an immediate quote and it was convenient; and 7 per cent couldn’t be bothered to shop around.
The research highlighted a general apathy when it came to shopping around for home insurance with 8.55 million people (26 per cent of homeowners with home cover) neglecting to source any additional quotes when buying home insurance and/or contents insurance. A further 16 per cent only bothered to get one extra quote besides that supplied by their current provider.
Commenting on the results of the survey, Steve Johnson, head of home insurance at Sainsbury’s, said: “Buying a home is often a hectic time and for many people it may seem tempting to just purchase buildings cover from their mortgage provider. However, people really should shop around to check that they are getting the best deal. Despite the fact that home insurance premiums are reportedly on the rise, there are some great deals out there if people take the time to evaluate what’s on offer.”