5 Dec

Brits in the dark over buildings insurance

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."

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