Nearly half of Briton's are cutting down on their contents cover because of the worsening recession according to a home insurance company.

Kwik Fit Insurance (KFI) said that the groups most likely to try and cut their insurance costs were pensioners and those under twenty-five. A spokesman for the insurer issued a warning to those thinking of scrimping on their insurance with the potential costs outweighing the small savings to be made.

The spokesman suggested that the increasing difficulty of getting on the housing ladder for young people was driving them to cut costs.

"Understandably people are looking to reduce their costs, and lowering the value of your home insurance will certainly bring down your premium," said Brendan Devine from KFI.

"But we’d urge people to think carefully about their cover, since even a small percentage reduction can mean a few thousand pounds for which they may not be insured if the worst comes to the worst," he added.