Homeowners at risk of underinsuring

As a result of the credit crunch, over 90% of brokers surveyed mentioned that their customers are trying to reduce the cost of their home insurance cover to save money. Worryingly, 62% of brokers believe that underinsurance is now a major issue and nearly half, 47%, were concerned that their customers could be underinsured by as much as 10%.

Brokers mentioned that the ways in which customers were cutting back on valuable household insurance cover to save money included:

• Choosing the lowest price