Homeowners could be losing out on a collective £600 million a year by taking out
home insurance from their mortgage lender, according to a new report.
A study by the Post Office found that half of all mortgage holders take out their home insurance from their mortgage lender, with one in eight believing that it is compulsory.
Homeowners are losing £120 a year on their home insurance and
life insurance policies by not looking elsewhere for cover.
The report urged homeowners to consider cover from insurance companies, rather than mortgage lenders, because the latter often does not provide the best value.
Most respondents to the survey said they took out these policies because they were the most "convenient".
But a spokesman for the company said: "Convenient doesn't always come cheap…Many homeowners don't realise taking out buildings and contents insurance with their mortgage lender is generally not the best value deal.
"And it's not compulsory for securing their mortgage."
Shop around for better insurance deals.
InsureandGo offers some great value
home insurance. Call for a quote.