Nationwide warns of house insurance gap

One in five people do not have buildings insurance and would not be covered in the event of a flood or a fire, new research has revealed.

The study, conducted by Nationwide, found that of those who did have buildings insurance almost a quarter did not know what was covered under their insurance policy .

Robin Bailey, Nationwide's insurance director, said: You never know what is around the corner and for that reason it is vital that people are prepared by having adequate insurance.

The survey also found that 14 per cent of people have not taken out an insurance policy for the contents of their home.

He added that it was important home insurance was both comprehensive and competitively priced.

On Friday moneysupermarket.com said that anyone who lived in areas prone to flooding must ensure that they have a good house insurance policy in place.

Widespread flooding hit the UK in June and July of last year.