Home insurance warning over cash

People should be careful when storing large sums of cash in their house, one home insurance firm has warned.

Mike Pickard, head of risk and underwriting at esure home insurance, explained that most policies have a fairly low limit on the amount of money people can claim back if stolen.

For esure this is £500, even if the cash is held in a high-security safe, he stated.

People looking for a safe place for their money should look further than buying a safe for their loft or under-stairs cupboard, he said.

Although such a device is good for storing items such as jewellery, lack of home insurance cover means those wanting a large amount of cash to hand should consider renting a safety deposit box, Mr Pickard added.

Yesterday, comparethemarket.com advised people to make sure they have sufficient liability cover in their home insurance policy .

According to the firm, this is particularly important for those who have nannies and such like working in their property .