In the last few years, more and more people are starting to feel the pinch of the recession, and are realising that things are not as they used to be. The cost of petrol is going up and up, the cost of gas and our energy bills continue to do the same and whilst the cost of living increases, our wages are certainly not following suit.

This leaves many of us having to budget and looking at ways to cut back, and unfortunately more and more people are seeing their insurance products as a way of cutting back, working on the basis that they’ve never needed them, so therefore they’ll be ok without for a few years.

Such an attitude to insurance, particularly home insurance can prove to be fatal, especially for your finances. If you decide not to have home insurance, then you leave yourself at risk, and could end up financially ruined from one unexpected event.

Home insurance provides you with protection against water damage, flooding, theft, vandalism and fire in your home, and is so important for looking after your home. Given the price of houses these days, it staggers us that someone may consider not insuring their home, when it’s worth £200,000, whilst they’ll still insure their car worth £5000 and their phone worth £400.

When you own your own home, or are responsible for the possessions in your home you have so much to lose, and it’s really not worth taking the risk.

Home insurance is often broken down into buildings insurance, and contents insurance, and if you need both types of insurance, you should have both. It’s important to know exactly what you do need cover for however so you don’t pay for a product you don’t need.

Contents insurance is usually needed by both those who own their homes, and those who rent their homes, but buildings insurance is only needed by those who own their homes, and who don’t pay maintenance charges to a management company, which usually incorporate buildings insurance.

Before cancelling your buildings insurance however, check with your management company exactly what is included.

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