Home Insurance Knowledge Lacking Among First Time Buyers .
Almost 47 percent of all first – time home buyers fail to budget for home insurance while stepping onto the mainstream property ladder. This news came as a shock for most people after it was announced by The Cooperative Insurance.
Nearly 3 out of every 10 new homeowners who bought property within the past 5 years did not apply for home insurance. This left more than £1.5 billion of property and property contents at risk. Of those who decided to take insurance according to the advice of their Leeds property solicitors and actually budgeted for it, 13% admitted that they had previous underestimated the cost of property insurance cover greatly. Over 10 percent of them believed that insurance would be cheaper than £100 every year – to adequately protect their homes and belongings. Insurance for Contents Additionally, 41% (two out of every five) of all first time buyers who were questioned during the survey did not get the contents of their homes insured. Of these, 29% claimed that they failed to do so because they run out of money before they could apply for insurance, 10% claimed to be too busy and 24% said that they did not really think content insurance was that important or necessary. Of the homeowners who got their contents covered, 19% said that they had not arranged it before they moved into their new homes. Those who had set aside amounts for insurance allocated an average of £236.72 for their annual premiums. These findings come as a shocker to many Leeds property solicitors, most of whom advise their clients to get the right kinds of insurance to protect their investments, properties, and belongings. They also reveal a deep-seated lack of knowledge and understanding about the home buying and owning process. After all, 34% of those interviewed claimed that they did not take the steps required to get buildings insurance before exchange the property contracts.