Recession hits home insurance cover

The recession is driving one in five of us to cancel or not renew our home insurance cover, according to the Association of British Insurers.

But, warns boss Stephen Haddrill: "Ditching insurance or reducing your cover must only be a last resort. In these uncertain times, insurance provides a vital financial safety net to help individuals and families through the recession, as well as helping to provide long-term security."

He reports that this latest "false economy" is even more widespread in Scotland, where 28% have cancelled or not renewed home contents cover and 21% have axed buildings insurance.

Across the whole country, 13% of people have ditched their life insurance, while 21% are seriously thinking about either reducing the amount they save or not saving anything at all.

This despite the fact that say they want to save more but can’t afford to, while 49% worry about being able to cope with an unexpected event, such as a burglary.

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