A research conducted by Sainsbury's Home Insurance has revealed that 2.94 million people believe that they had to buy their buildings insurance from their mortgage lender in order to secure their mortgage.
The findings underline the dominance that mortgage lenders have on the home insurance marketplace, with almost a half of all those with building insurance saying that they have purchased cover directly from their mortgage provider. This failure to shop around for their home buildings policy means that many homeowners could be missing out on great deals.
The research has also revealed that only 28% of people with buildings cover purchased from their mortgage provider believed that their lender had offered them the best deal. Almost one in five believed they had to purchase it from their mortgage provider to secure their mortgage; 13% went with their lender because they received an immediate quote and it was convenient; and 7% couldn’t be bothered to shop around.
It has also highlighted a general apathy when it came to shopping around for home insurance with 8.55 million people neglecting to source any additional quotes when buying home buildings and/or content insurance. A further 16% only bothered to get one extra quote besides that supplied by their current provider.
Steve Johnson, head of home insurance at Sainsbury’s, said: Buying a home is often a hectic time and for many people it may seem tempting to just purchase buildings cover from their mortgage provider. However people really should shop around to check they’re getting the best deal. Despite the fact that home insurance premiums are reportedly on the rise, there are some great deals out there if people take the time to evaluate what’s on offer.