Indeed, research from Abbey insurance has found that some 4.6 million Brits have built up stores of cash, with an average value of £729, which they would normally have deposited, while 2.8 million people withdrew an average of £704 from their bank in the past twelve months to specifically store in their home rather than a bank or building society.
But with commentators predicting a rise in burglary levels - as a likely social consequence of the economic downturn - Abbey Insurance warns that these people could well run into trouble.
Abbey's analysis of the insurance market found that many of these Britons would not be fully covered by their home contents insurance if the money was stolen from their home. Although there are insurance policies that do offer ‘cash in the home' cover, in all cases this is limited and many people may find that their cover is not adequate for the amount of cash they may have.
Historically there is significant evidence to suggest that an economic downturn will coincide with an increase in household crime. Analysis of market data shows that during the last recession (May 1990 - March 1992) figures for the number of domestic burglaries recorded by police in England and Wales rose by 33.8 per cent.
With this in mind the insurer questions the logic of holding onto money that would normally be deposited in a bank where it will earn interest, especially since the Government guarantees the first £50,000 under the financial services compensation scheme (per licence).
Tony Beckwith, Chief Operating Officer, Abbey Insurance commented: "The banking world has had a turbulent year but the systems to protect deposits and savings are in place meaning that all of us have a high degree of security. Hoarding cash in your property doesn't make sense.
"Most insurers will only cover the first £500, sometimes less, should it be stolen or destroyed in an accident and you're not going to earn interest on cash stuffed under the mattress. Even those people planning on handing over substantial Christmas cash gifts should consider whether their insurance provisions are adequate."
