Worryingly, 62% of brokers believe that underinsurance is now a major issue and nearly half, 47%, were concerned that their customers could be underinsured by as much as 10%.
The new research from Legal & General’s general insurance business asked brokers what impact the current market conditions were having on their household insurance business and their customers.
Phil Kennedy, business development director, for Legal & General’s general insurance business said: “Worryingly these findings support independent consumer research we recently conducted that highlighted that 32% of people would consider shopping around for cheaper household insurance cover to save money. So it would appear that it is now more important than ever for advisers to continue to check that their customers do have adequate household insurance cover in place.
“In today’s economic climate, choosing the lowest price option regardless of brand or cover could be a false economy. By recommending cover from a secure and trusted brand, advisers can give customers confidence that their home is sufficiently protected should the worst happen.
“Household insurance cover is not a luxury purchase. When home contents cover can be provided for as little as £10 to £20 per month, which represents good value, even when household budgets are being stretched.”
