A study carried out by UKDN Waterflow found that 9 in 10 homeowners didn’t understand their home insurance, leading to distress and disappointment in a claims scenario.
At 42%, half the number of tenants, who are only responsible for insuring their possessions, found that they struggled with the complexities of insurance.
The drainage and structural maintenance firm who carried out the study suggested the reason that double the amount of homeowners than renters grapple with the terms in their insurance is because of the range of issues and risks dramatically increases when a home has been purchased – issues that the property owner is then responsible for themselves.
They also reported that there was a noticeable discrepancy between the understanding of those who actually have cover in place for their home, and those who don’t. Among those questioned with insurance, 66% said they were “not at all confident” that they understand the cover their policy represents. Meanwhile 21% of those without cover were not confident that they understood what buildings and contents insurance covers.
When it came to buildings insurance, only 13% of owners with this protection felt knowledgeable about their policies, a figure which UKDN Waterflow’s client development manager, Sharon Betts described as “particularly worrying”.
“These figures make it clear that we all need to do more to educate the public so they are fully and appropriately covered at their time of need,” she said.
Among those questioned for the survey were 629 people who identified themselves as homeowners and 119 as renters. The remainder of the 766 people questions classed themselves as “other”