General Insurance Article - Two-in-five Brits make costly mistake of being underinsured


-Sixty per cent of Brits have experienced accidental damage or theft
-Three-in-five had adequate cover but the rest had to stump up £200 or more
-Only forty per cent read their insurance policy in full
-One-in-four go for the cheapest insurance policy regardless of cover
-Research comes as Santander's Peace of Mind Plus home insurance policy is awarded five star rating for quality by leading industry analyst

 Almost forty per cent of Brits have experienced a ‘costly mistake' because they weren't adequately insured according to new findings from Santander Insurance.(1) The research shows that while three-in-five of these people had adequate insurance in place to cover accidental damage and theft, two-in-five people had to pay over £200 to repair or replace damaged or stolen items. And for one-in-five, that figure was over £500.

 Given the prevalence of accidental damage and theft - with sixty per cent of Brits saying they have experienced one or the other - the research highlights a concerning trend. Of those that buy home insurance, sixty per cent admit they do not take the time to read the full terms and conditions of their insurance policy. Almost half (47 per cent) merely skim through the main points, but worryingly ten per cent do not read any of the small print at all.

 The research - which comes as Santander's Peace of Mind Plus home insurance is awarded five star rating from independent industry analyst Defaqto for quality - also shows that one-in-four just choose the lowest price provider, regardless of cover and 22 per cent will renew with the same provider each year, without assessing whether the policy still meets their needs.

 Colin Greenhill, Director of Santander Insurance, said: "While customers obviously want good value from their home insurance, the best value policy is the one that actually provides comprehensive cover when things go wrong.

 "Our award winning and competitive Peace of Mind Plus home insurance policy offers an unlimited total sum insured(2) for building and contents cover and has just been awarded five star rating from leading industry analyst, Defaqto. It's the 8th year in a row Santander has been given the maximum rating for one of its home insurance policies.

 "And we're offering 20 per cent discount until the end of March for all Santander home insurance customers, making ‘peace of mind' even more affordable."

 The most common accidents and who's to blame

 Carpets, rugs or upholstery were the most common items to suffer damage due to an accident, with over one-in-four saying this has happened to them. 20 per cent have seen damage to electrical items like TVs and DVDs and 19 per cent have accidentally ruined their furniture. Loss or damage of gadgets like iPads, tablet computers and phones outside the home has happened to 9 per cent of Brits and a further 9 per cent have lost or damaged camcorders, camera or sports equipment.

 Adults themselves are the main culprits for the costly damage not covered by home insurance, with 30 per cent of these costs being blamed on themselves or other adults in the household. A further 11 per cent of these uncovered costs were blamed on children in the household. 29 per cent of all uncovered costs were incurred as a result of theft.

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