From This is Money:
But they are leaving themselves and their families exposed should disaster strike.
Almost one million have either cancelled or reduced their level of home insurance in the past 12 months to cut household bills, according to research by Sainsbury’s Bank. A further 300,000 have cancelled their life cover.
Even buildings insurance has been affected, which is worrying given that it is a legal requirement for mortgaged properties and that homeowners who cancel buildings cover could invalidate their mortgage.
The Association of British Insurers is concerned that people are getting rid of household cover at a time when they probably need it most. Malcolm Tarling of the ABI says: ‘It’s a false economy. Insurance may seem expendable when family budgets are being squeezed, but people should think long and hard about the most sensible places to make savings rather than rashly cancelling essential cover.’
For parents with young children or couples with a large mortgage, cancelling life in…