Homeowners losing out through mortgage provider insurance

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Close to half of the UKs homeowners could be losing significant amounts of money by insuring the contents of their home with their mortgage provider, a new study claims.

A report from the Post Office claims that around five million Brits are losing a combined total of £600 million every year on home and life insurance - by choosing to use the policies offered by their mortgage provider instead of shopping around.

Around 46 per cent of Brits buy life and home insurance from their mortgage provider - with around 12 per cent of these individuals claiming that they did so because they thought they were required by law to do so.

Roughly two-thirds of these people said that they had taken out insurance from their mortgage provider because of the "convenience" - admitting that they hadn't shopped around for the best deal.

"Convenient doesn't always mean cheap," said Post Office Financial Services head of insurance Phil Ashkuri.

"Many homeowners don't realise taking out buildings and contents 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."

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