'Don't go for cheap insurance', says expert
- Published: 13/08/2007
People affected by the recent bouts of flooding in the UK should make sure they don't panic and take out cheap home insurance, an industry expert has warned.
June and July's floods are expected to cost British insurers around £2.5 billion - and home insurance premiums are forecast to rise as a result of this.
But consumers should not be tempted to take the cheapest cover they can find, as they could end up hundreds, if not thousands, of pounds out of pocket through being inadequately insured, says Andrew Perryman, an industry sales director.
"Many people will have a knee jerk reaction to the rising cost of home insurance and will buy the cheapest cover they can find," he commented.
"While shopping around for the cheapest premium does makes sense, unfortunately many consumers are unaware of just what the cover on their cheap policy entails.
"They see what looks like a good deal and buy it, without taking any advice. This means that when it comes to claiming, in many cases their claim will be rejected as they are simply not covered."
June and July's floods are expected to cost British insurers around £2.5 billion - and home insurance premiums are forecast to rise as a result of this.
But consumers should not be tempted to take the cheapest cover they can find, as they could end up hundreds, if not thousands, of pounds out of pocket through being inadequately insured, says Andrew Perryman, an industry sales director.
"Many people will have a knee jerk reaction to the rising cost of home insurance and will buy the cheapest cover they can find," he commented.
"While shopping around for the cheapest premium does makes sense, unfortunately many consumers are unaware of just what the cover on their cheap policy entails.
"They see what looks like a good deal and buy it, without taking any advice. This means that when it comes to claiming, in many cases their claim will be rejected as they are simply not covered."