Industry News from Yes Insurance

People must not cut back on home insurance in a bid to save money during the economic downturn, it has been claimed.

According to the British Insurance Brokers' Association (Biba), these types of policies protect practically everything people own and should therefore not be sacrificed.

It pointed out individuals with a mortgage require buildings cover and the average cost is approximately £210.

The group acknowledged that contents insurance is optional.

However, it stated at around £149 a year, people are able to protect all their worldly goods from flood, fire, burglary and theft.

Graeme Trudgill, technical and corporate affairs executive with Biba, said: "Of all the insurances that you do choose, the household ones - buildings and contents … are an absolute must, so we really do recommend that you buy them."

This comes after the Association of British Insurers revealed 22 per cent of people have cancelled or failed to renew their home insurance during the last year in order to reduce their outgoings.

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