The analysis from MoneySuperMarket, based on 2.6m customer quotes on the price comparison site’s home insurance channel between July 2015 and June 2016, reveals homeowners typically estimate the value of their home contents at £35,000. However, according to insurance experts, the average three bedroom family home in the UK has £55,000 worth of items, meaning there is an average £20,000 ‘insurance gap’ in each home.
Jason Berry, Director of Sales at Uinsure, was clear that neglecting GI puts consumers at risk.
He said:
"As long as brokers continue to neglect GI, consumers will be at risk of being under insured and poorly protected. Like most financial products insurance can be complex and it's essential that customers have the advice and guidance of an experienced intermediary. Without that they're likely to source their own insurance, often using comparison sites and with extensive policy choice meaning there are over 300 home insurance products available in the UK right now finding the correct one for their circumstances can be difficult.
"Quality is key so independent research ratings such as Defaqto and Moneyfacts should be considered when selecting a policy. But it takes an intermediary with an understanding of these rating systems and a knowledge of protection to guide the customer to the right product. At present this isn't happening because a huge number of brokers feel apathetic towards GI. They don't get involved because they don't think it's worth it. As well as being an incorrect assumption, it's also a dangerous one for their clients -as this research shows.
"Brokers must embrace GI in order to ensure their clients receive the cover they need. Not doing so is nothing short of neglectful."
