Brits cutting back in home insurance

Approximately a quarter of Brits are cutting down on home insurance in a bid to save some cash, according to new research.

A study by the Association of British Insurers (ABI) highlights that 22 per cent of people questioned had either cancelled or not renewed their home contents insurance policy in the past 12 months, while 17 per cent no longer have buildings cover .

People are also cutting back on life insurance products, with 13 per cent of consumers forgoing on this type of protection.

However, the ABI warns that cutting back on insurance could be a false economy.

Stephen Haddrill, the body's director general, said: In these uncertain times, insurance provides a vital financial safety net to steer individuals and families through the recession, as well as helping to provide long-term security. Ditching insurance or reducing your cover must only be a last resort.

Cheshire Building Society recently advised Brits to ensure their garden furniture is insured due to increased numbers of thefts.