5
Dec
Brits in the dark over buildings insurance
Close to 3 million of the UK's mortgage borrowers believe that they
are obliged to buy buildings insurance from their mortgage
provider, it has been revealed.
According to research from Sainsbury's bank 2.94 million of UK
borrowers think that they are compelled legally to buy building
insurance form their provider or their mortgage will not be
approved.
In fact, while buildings insurance is mandatory in order for a
mortgage to be approved, the law does not require this to be bought
from the firm that provides the mortgage.
This has meant that they are not shopping around for the best deal
and as a result are missing out on significant savings, Steve
Johnson of Sainsbury's Home Insurance 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."
He added: "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."
