The survey showed 46 per cent of those questioned bought buildings, contents or life insurance from their mortgage lender without shopping around.
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Of the sample of 2,527 people, one in 10 did so because they thought it was compulsory to buy home or life insurance from their mortgage lender. One in 20 believed their mortgage was at risk if they did not buy insurance as well.
The Post Office found that 63 per cent chose their mortgage lender’s insurance because it was ‘convenient’.
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Phil Ashkuri, head of insurance for Post Office Financial Services, said: “Convenient doesn’t always mean cheap. Many home owners don’t realise taking out insurance with their mortgage lender is generally not the best value deal and it’s not compulsory for securing their mortgage.
Our advice is shop around, as there are better home insurance deals out there from standalone providers.”
Rod Murdison, proprietor of Murdison & Browning, commented: “Most people don’t know where to go to shop around for insurance and brokers don’t push it hard because there isn’t as big an immediate payment for the work. Brokers do need to advise more, but it can become so complicated, that it’s not surprising people stick with their lender.”
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