Shopping around for home insurance vital in tough times

One home insurance comparison website says it has succeeded in encouraging people to shop around for cover in an unusual way - by offering them the chance to win £1 million.

Debra Williams, managing director of Confused.com, explained that the company has seen a dramatic increase in the number of people enquiring about home insurance with the firm after it announced that anyone applying for a quote with it will be entered in to a prize draw .

And, given the state of the economy, Miss Williams believes that there is no better time to be looking to save money .

She said: Debt is at an all time high and in these times of heightened financial awareness consumers need to make insurers compete for their custom by offering the most competitive price.

People could save hundreds of pounds on their car and home insurance just by shopping around for a lower quote.

Yesterday, insurance firm RIAS warned that anyone with expensive items in their garden might find they are not covered by their home insurance policy .