Research by the Post Office Home Insurance has found that consumer confusion and apathy could be costing the nations homeowners millions of pounds each year, with mortgage lenders cashing in on uncertainty over home insurance.
The research found that nearly four in 10 (39%) homeowners purchased their buildings and/or contents insurance through their mortgage provider, despite the possibility of far better deals elsewhere.
It is not just homeowners that lose out, it is people living in rented accommodation too.
Less than one in 10 people (9%) change their home insurance provider annually, with 40% never changing and a further 28% rarely doing so.
Post Office Home Insurance is reminding people that it only takes about fifteen minutes to shop around for a home insurance provider and with savings of up to 40% to be made its clearly worth it.
Claire Oldstein, head of Post Office Home Insurance, says: “Changes to the law six years ago prevented lenders from forcing homeowners to buy their home insurance through them.
“However, nearly half of consumers still seem to be doing so.
“Mortgage providers dont always offer the best value for money when it comes to home insurance, so it really is wise to explore other options.
“Whether you are a homeowner or renting, the best advice is to shop around every year. Just 15 minutes spent checking out the offers of a couple of other providers could be time well spent when it comes to the savings you can make.”
Even greater savings can be made throughout September through the Post Office Insurance Sale, which is offering 25 off home insurance policies until September 30 2005.
Post Office Home Insurance optional extras, which supplement the policy, include for building insurance, a minimum cover of 35,000 and a maximum cover of 750,000, with a maximum no claims discount of 35%.
For contents insurance it includes a minimum cover of 15,000 and a maximum cover of 99,000, with a maximum no claims discount of 35%; and minimum all risks cover of 2000.